The proposed bill establishes a state child care subsidy program administered by the Department of Health and Human Services. It mandates that the department provide child care assistance to families with incomes between 130% and 400% of the federal poverty level starting October 1, 2026. The bill outlines requirements for child care providers, including compliance with criminal history checks and a sliding-scale methodology for determining assistance based on household income. Additionally, it allows for certain accommodations for licensed child care programs employing members of eligible households and specifies that a payroll tax will fund the program.

Furthermore, the bill stipulates that the department will adopt a fixed-rate schedule for child care reimbursement, ensuring that rates do not exceed what providers charge their private clients. It also emphasizes the provision of the highest level of assistance to qualified apprentice workers, defined as individuals involved in registered apprenticeship programs in Nebraska. The funding structure prohibits the use of General Funds for costs associated with the income eligibility changes, ensuring that the program is financially sustainable.