House Study Bill 3 - IntroducedA Bill ForAn Act 1establishing a graduated eligibility phase-out program
2for state child care assistance.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  237A.14  Child care assistance —
2graduated eligibility phase-out.
   31.  At the time of a twelve-month eligibility
4redetermination for a family receiving state child care
5assistance, the family shall remain eligible to receive
6child care assistance, subject to the graduated eligibility
7phase-out program as specified in subsection 2, if either of
8the following conditions are met:
   9a.  The family’s nonexempt gross monthly income is determined
10to be at least two hundred twenty-five percent but less
11than two hundred fifty percent of the federal poverty level
12applicable to the family size for children needing basic care.
   13b.  The family’s nonexempt gross monthly income is determined
14to be at least two hundred twenty-five percent but less than
15two hundred seventy-five percent of the federal poverty level
16applicable to the family size for children needing special
17needs care.
   182.  a.  A family with an income at the following percentages
19of the federal poverty level applicable to the family size
20for children needing basic care shall be responsible for the
21following share of child care costs:
   22(1)  A family with an income above two hundred twenty-five
23percent of the federal poverty level but less than two hundred
24thirty-five percent of the federal poverty level shall pay for
25thirty-three percent of the family child care costs.
   26(2)  A family with an income at or above two hundred
27thirty-five percent of the federal poverty level but less than
28two hundred forty-five percent of the federal poverty level
29shall pay for forty-five percent of the family child care
30costs.
   31(3)  A family with an income at or above two hundred
32forty-five percent of the federal poverty level but at or less
33than two hundred fifty percent of the federal poverty level
34shall pay for sixty percent of the family child care costs.
   35b.  A family with an income at the following percentages of
-1-1the federal poverty level applicable to the family size for
2children needing special needs care shall be responsible for
3the following share of child care costs:
   4(1)  A family with an income above two hundred twenty-five
5percent of the federal poverty level but less than two hundred
6forty-five percent of the federal poverty level shall pay for
7thirty-three percent of the family child care costs.
   8(2)  A family with an income at or above two hundred
9forty-five percent of the federal poverty level but less than
10two hundred sixty-five percent of the federal poverty level
11shall pay for forty-five percent of the family child care
12costs.
   13(3)  A family with an income at or above two hundred
14sixty-five percent of the federal poverty level but at or less
15than two hundred seventy-five percent of the federal poverty
16level shall pay for sixty percent of the family child care
17costs.
   18c.  The graduated eligibility phase-out as provided in
19paragraphs “a” and “b” shall be implemented no later than July
201, 2022.
   213.  Child care provider reimbursement rates under the
22graduated eligibility phase-out program shall be the same rates
23as the child care provider reimbursement rates in effect on
24July 1, 2021.
   254.  The department of human services shall adopt rules
26pursuant to chapter 17A in accordance with this section.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30This bill establishes a graduated eligibility phase-out
31program for state child care assistance.
   32The bill provides that at the time of a 12-month eligibility
33redetermination for a family receiving state child care
34assistance, the family shall remain eligible for child care
35assistance, subject to the graduated eligibility phase-out
-2-1program, if either the family’s nonexempt gross monthly
2income is at least 225 percent but less than 250 percent of
3the federal poverty level applicable to the family size for
4children needing basic care or the family’s nonexempt gross
5monthly income is at least 225 percent but less than 275
6percent of the federal poverty level applicable to the family
7size for children needing special needs care.
   8The bill provides that a family with children needing basic
9care shall pay for 33 percent of the family’s child care costs
10if the family’s income is above 225 percent but less than
11235 percent of the federal poverty level; 45 percent of the
12family’s child care costs if the family’s income is at or above
13235 percent but less than 245 percent of the federal poverty
14level; and 60 percent of the family’s child care costs if the
15family’s income is at or above 245 percent but at or less than
16250 percent of the federal poverty level.
   17A family with children needing special needs care shall pay
18for 33 percent of the family’s child care costs if the family’s
19income is above 225 percent but less than 245 percent of the
20federal poverty level; 45 percent of the family’s child care
21costs if the family’s income is at or above 245 percent but
22less than 265 percent of the federal poverty level; and 60
23percent of the family’s child care costs if the family’s income
24is at or above 265 percent but at or less than 275 percent of
25the federal poverty level.
   26The bill provides that the graduated eligibility phase-out
27program for eligible families shall be implemented no later
28than July 1, 2022.
   29The bill provides that child care provider reimbursement
30rates under the graduated eligibility phase-out program
31shall be the same rates as the child care assistance provider
32reimbursement rates in effect on July 1, 2021.
   33The department of human services is directed to adopt rules
34in accordance with the provisions of the bill.
-3-
dg/rh