H.F. 302 Section 1. NEW SECTION . 237A.14 Child care assistance —— 1 graduated eligibility phase-out. 2 1. At the time of a twelve-month eligibility 3 redetermination for a family receiving state child care 4 assistance, the family shall remain eligible to receive 5 child care assistance, subject to the graduated eligibility 6 phase-out program as specified in subsection 2, if either of 7 the following conditions are met: 8 a. The family’s nonexempt gross monthly income is determined 9 to be at least two hundred twenty-five percent but less 10 than two hundred fifty percent of the federal poverty level 11 applicable to the family size for children needing basic care. 12 b. The family’s nonexempt gross monthly income is determined 13 to be at least two hundred twenty-five percent but less than 14 two hundred seventy-five percent of the federal poverty level 15 applicable to the family size for children needing special 16 needs care. 17 2. a. A family with an income at the following percentages 18 of the federal poverty level applicable to the family size 19 for children needing basic care shall be responsible for the 20 following share of child care costs: 21 (1) A family with an income above two hundred twenty-five 22 percent of the federal poverty level but less than two hundred 23 thirty-five percent of the federal poverty level shall pay for 24 thirty-three percent of the family child care costs. 25 (2) A family with an income at or above two hundred 26 thirty-five percent of the federal poverty level but less than 27 two hundred forty-five percent of the federal poverty level 28 shall pay for forty-five percent of the family child care 29 costs. 30 (3) A family with an income at or above two hundred 31 forty-five percent of the federal poverty level but at or less 32 than two hundred fifty percent of the federal poverty level 33 shall pay for sixty percent of the family child care costs. 34 b. A family with an income at the following percentages of 35 -1- LSB 1130HV (1) 89 dg/rh 1/ 3

H.F. 302 the federal poverty level applicable to the family size for 1 children needing special needs care shall be responsible for 2 the following share of child care costs: 3 (1) A family with an income above two hundred twenty-five 4 percent of the federal poverty level but less than two hundred 5 forty-five percent of the federal poverty level shall pay for 6 thirty-three percent of the family child care costs. 7 (2) A family with an income at or above two hundred 8 forty-five percent of the federal poverty level but less than 9 two hundred sixty-five percent of the federal poverty level 10 shall pay for forty-five percent of the family child care 11 costs. 12 (3) A family with an income at or above two hundred 13 sixty-five percent of the federal poverty level but at or less 14 than two hundred seventy-five percent of the federal poverty 15 level shall pay for sixty percent of the family child care 16 costs. 17 c. The graduated eligibility phase-out as provided in 18 paragraphs “a” and “b” shall be implemented no later than July 19 1, 2022. 20 3. Child care provider reimbursement rates under the 21 graduated eligibility phase-out program shall be the same rates 22 as the child care provider reimbursement rates in effect on 23 July 1, 2021. 24 4. The department of human services shall adopt rules 25 pursuant to chapter 17A in accordance with this section. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill establishes a graduated eligibility phase-out 30 program for state child care assistance. 31 The bill provides that at the time of a 12-month eligibility 32 redetermination for a family receiving state child care 33 assistance, the family shall remain eligible for child care 34 assistance, subject to the graduated eligibility phase-out 35 -2- LSB 1130HV (1) 89 dg/rh 2/ 3

H.F. 302 program, if either the family’s nonexempt gross monthly 1 income is at least 225 percent but less than 250 percent of 2 the federal poverty level applicable to the family size for 3 children needing basic care or the family’s nonexempt gross 4 monthly income is at least 225 percent but less than 275 5 percent of the federal poverty level applicable to the family 6 size for children needing special needs care. 7 The bill provides that a family with children needing basic 8 care shall pay for 33 percent of the family’s child care costs 9 if the family’s income is above 225 percent but less than 10 235 percent of the federal poverty level; 45 percent of the 11 family’s child care costs if the family’s income is at or above 12 235 percent but less than 245 percent of the federal poverty 13 level; and 60 percent of the family’s child care costs if the 14 family’s income is at or above 245 percent but at or less than 15 250 percent of the federal poverty level. 16 A family with children needing special needs care shall pay 17 for 33 percent of the family’s child care costs if the family’s 18 income is above 225 percent but less than 245 percent of the 19 federal poverty level; 45 percent of the family’s child care 20 costs if the family’s income is at or above 245 percent but 21 less than 265 percent of the federal poverty level; and 60 22 percent of the family’s child care costs if the family’s income 23 is at or above 265 percent but at or less than 275 percent of 24 the federal poverty level. 25 The bill provides that the graduated eligibility phase-out 26 program for eligible families shall be implemented no later 27 than July 1, 2022. 28 The bill provides that child care provider reimbursement 29 rates under the graduated eligibility phase-out program 30 shall be the same rates as the child care assistance provider 31 reimbursement rates in effect on July 1, 2021. 32 The department of human services is directed to adopt rules 33 in accordance with the provisions of the bill. 34 -3- LSB 1130HV (1) 89 dg/rh 3/ 3