This bill amends several sections of Nebraska's statutes related to the federal Child Care Subsidy program, specifically focusing on the reimbursement rates for child care providers under the Step Up to Quality Child Care Act. The Department of Health and Human Services is required to assess market rates and adjust reimbursement rates every odd-numbered year, ensuring that nationally accredited providers and those rated step two or higher in the quality rating system receive higher reimbursements. The bill also introduces a fixed-rate schedule for child care reimbursement, which will be revised annually and will include tiered rates based on quality ratings.

Additionally, the bill outlines changes to eligibility for child care assistance, allowing families with incomes up to 185% of the federal poverty level to receive assistance until October 1, 2026, after which the threshold will decrease to 130%. It also establishes transitional child care assistance for families whose income exceeds these limits, ensuring continued support until their income surpasses 85% of the state median income. The bill emphasizes the importance of quality in child care services by providing tiered subsidy reimbursements and incentives for providers to improve their quality ratings. The original sections of the statutes being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 43-536, 68-1206, 71-1961