H.F. 2221 Section 1. Section 237A.13, Code 2026, is amended to read 1 as follows: 2 237A.13 State child care assistance. 3 1. A state child care assistance program is established 4 in the department to assist children in families who meet 5 eligibility guidelines and are described by any of the 6 following circumstances: 7 a. The child’s parent, guardian, or custodian is 8 participating in approved academic, vocational, or technical 9 training. 10 b. The child’s parent, guardian, or custodian is 11 seeking employment. Eligibility for assistance while 12 seeking employment shall be limited to thirty days during a 13 twelve-month period. 14 c. The child’s parent, guardian, or custodian is employed 15 a minimum of thirty-two hours per week or an average of 16 thirty-two hours per week during the month if the child 17 requires basic care, or twenty-eight hours per week or an 18 average of twenty-eight hours per week during the month if the 19 child is a special needs child. 20 d. The child’s parent, guardian, or custodian is absent due 21 to hospitalization, physical illness, or mental illness, or is 22 present but is unable to care for the child as verified by a 23 physician or physician assistant. 24 e. The child needs protective services to prevent or 25 alleviate child abuse or neglect. 26 f. The person’s family circumstances are described in 27 paragraph “a” , “b” , “c” , or “d” , the person is thirteen years 28 of age or older but younger than sixteen years of age, and 29 state child care assistance is approved for the person by the 30 director or the director’s designee based on a request for an 31 exception to policy made by the person’s parent, guardian, or 32 custodian because special family circumstances exist that would 33 place the safety and well-being of the person at risk if the 34 person is left home alone. The definition of child in section 35 -1- LSB 5047YH (5) 91 dg/ko 1/ 5

H.F. 2221 237A.1 does not apply to child care supported by state child 1 care assistance approved pursuant to this lettered paragraph. 2 2. certain income requirements. A family shall only be 3 initially eligible for state child care assistance if the 4 family’s gross monthly income does not exceed the lesser of: 5 a. (1) One hundred sixty percent of the federal poverty 6 level applicable to the family size for children needing basic 7 care. 8 (2) Two hundred percent of the federal poverty level 9 applicable to the family size for children needing special 10 needs care. 11 b. Eighty-five percent of the state median gross monthly 12 income. 13 3. 2. Services under the program may be provided in a 14 licensed child care center, a child development home, the home 15 of a relative, the child’s own home, a child care home, or in a 16 facility exempt from licensing or registration. 17 4. 3. a. The department shall set reimbursement rates 18 as authorized by appropriations enacted for payment of the 19 reimbursements. The department shall conduct a statewide 20 reimbursement rate survey to compile information on each county 21 and the survey shall be conducted at least every two years. 22 The department shall set rates in a manner so as to provide 23 incentives for an unregistered provider to become registered. 24 b. The department shall not modify reimbursement rates 25 to the state child care assistance program or financial 26 eligibility requirements for a family participating in the 27 state child care assistance program without prior enabling 28 legislation in this state passed on or after January 1, 2023. 29 5. 4. The department’s billing and payment provisions for 30 the program shall allow providers to elect either biweekly 31 or monthly billing and payment for child care provided under 32 the program. The department shall remit payment to a provider 33 within ten business days of receiving a bill or claim for 34 services provided. However, if the department determines 35 -2- LSB 5047YH (5) 91 dg/ko 2/ 5

H.F. 2221 that a bill has an error or omission, the department shall 1 notify the provider of the error or omission and identify any 2 correction needed before issuance of payment to the provider. 3 The department shall provide the notice within five business 4 days of receiving the billing from the provider and shall remit 5 payment to the provider within ten business days of receiving 6 the corrected billing. 7 6. 5. A child care provider shall be allowed to collect 8 from a family participating in the state child care assistance 9 program the difference between the state child care assistance 10 reimbursement rate and the rate the provider would typically 11 charge a private-pay family for child care, provided the child 12 care provider and family agree in writing to such additional 13 payments prior to the provision of the child care. 14 7. 6. On or before July 1, 2007, the The department shall 15 implement maintain a system for making program payments by 16 electronic funds transfer or other electronic means. 17 8. 7. The department shall not apply waiting list 18 requirements to any of the following persons: 19 a. Persons deemed to be eligible for benefits under the 20 state child care assistance program in accordance with section 21 239B.24 A child of a participant under chapter 239B . 22 b. A family that is receiving state child care assistance 23 at the time a child is born into the family. The newborn child 24 shall be approved for services when the family reports the 25 birth of the child. 26 c. Children who need protective services to prevent or 27 alleviate child abuse or neglect. 28 d. A child in a family that is eligible for state child care 29 assistance and that receives a state adoption subsidy for the 30 child. 31 9. 8. Based upon the availability of the funding 32 appropriated for state child care assistance for a fiscal 33 year, the department shall establish waiting lists for state 34 child care assistance in descending order of prioritization as 35 -3- LSB 5047YH (5) 91 dg/ko 3/ 5

H.F. 2221 follows: 1 a. Families with an income at or below one hundred percent 2 of the federal poverty level whose members, for at least 3 thirty-two hours per week in the aggregate, are employed or 4 are participating at a satisfactory level in an approved 5 training program or educational program, and parents with a 6 family income at or below one hundred percent of the federal 7 poverty level who are under the age of twenty-one years and 8 are participating in an educational program leading to a high 9 school diploma or the equivalent. 10 b. Parents with a family income at or below one hundred 11 percent of the federal poverty level who are under the age 12 of twenty-one years and are participating, at a satisfactory 13 level, in an approved training program or in an educational 14 program. 15 c. Families with an income of more than one hundred percent 16 but not more than one hundred sixty percent of the federal 17 poverty level whose members, for at least thirty-two hours 18 per week in the aggregate, are employed or are participating 19 at a satisfactory level in an approved training program or 20 educational program. 21 d. Families with an income at or below two hundred percent 22 of the federal poverty level whose members are employed at 23 least twenty-eight hours per week with a special needs child as 24 a member of the family on a first-come, first-served basis . 25 10. 9. Nothing in this This section shall not be construed 26 as or is intended as, or shall imply, a grant of entitlement 27 for services to persons who are eligible for assistance due to 28 an income level or other eligibility circumstance addressed in 29 under this section . Any state obligation to provide services 30 state child care assistance pursuant to this section is shall 31 be limited to the extent of the funds appropriated for the 32 purposes of state child care assistance. 33 Sec. 2. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— STATE 34 CHILD CARE ASSISTANCE PROGRAM ELIGIBILITY. The department 35 -4- LSB 5047YH (5) 91 dg/ko 4/ 5

H.F. 2221 of health and human services shall amend the department’s 1 administrative rules pursuant to chapter 17A to remove all 2 requirements unrelated to family income as a condition for 3 eligibility or participation in the state child care assistance 4 program. 5 Sec. 3. REPEAL. Section 239B.24, Code 2026, is repealed. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 The state child care assistance (CCA) program assists 10 families by paying for all or a portion of the cost of a 11 family’s child care depending on the family’s income. Under 12 current law, to be eligible for the CCA program, a family 13 must meet certain income requirements as well as certain 14 requirements not related to family income. This bill removes 15 the requirements unrelated to family income as a condition for 16 eligibility or participation in the CCA program. 17 The bill makes conforming changes to Code section 237A.13 18 and repeals Code section 239B.24. 19 -5- LSB 5047YH (5) 91 dg/ko 5/ 5