This bill aims to address the issue of abrupt loss of child care assistance for families experiencing modest increases in income, which can create a "benefits cliff" that discourages wage growth and destabilizes child care arrangements. It introduces a new section, 49-2-1101, to the Code of West Virginia, which authorizes the Department of Human Services to develop policies and procedures to gradually phase out child care subsidies as family income increases. The bill outlines various methods for mitigating the cliff effect, including expanding the sliding fee scale for copayments, establishing higher exit eligibility thresholds, implementing graduated phase-out structures, and creating transitional eligibility periods.

Additionally, the bill mandates that the Department of Human Services implement these mitigation policies by January 1, 2027, and submit an annual report to the Joint Committee on Government and Finance detailing the implementation and impact of these strategies. The overarching goal is to encourage employment and wage growth while ensuring stability for children and child care providers.

Statutes affected:
Introduced Version: 49-2-1101