Relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates

This bill relates to the state child care assistance (CCA) program income eligibility requirements and child care provider (provider) reimbursement rates. Under current law, for a child to be eligible for entry into the CCA program, the child’s family must have income below 160 percent of the federal poverty level (FPL) applicable to a family’s size for a child needing basic care, or 200 percent of the FPL for a child needing special needs care. The bill increases the CCA program income eligibility limit for children needing basic care to 170 percent of the FPL for FY 2025-2026; 180 percent of the FPL for FY 2026-2027; 190 percent of the FPL for FY 2027-2028; and 200 percent of the FPL on or after July 1, 2028. The bill increases the CCA program income eligibility limit for children needing special needs care to 210 percent of the FPL for FY 2025-2026; 220 percent of the FPL for FY 2026-2027; 230 percent of the FPL for FY 2027-2028; and 240 percent of the FPL on or after July 1, 2028. The reimbursement rates paid to providers under the CCA program are based on statewide reimbursement rate surveys that the department of health and human services (HHS) conducts at least every two years to collect data on providers’ private pay rates. Under current law, CCA reimbursement rates must be set at rates no less than the 65th percentile, but no more than the 80th percentile, of rates child care providers charge private pay customers as reported in the 2020 statewide reimbursement rate survey. The bill requires HHS to base CCA reimbursement rates on the most recently completed statewide reimbursement rate survey.