Relating to reimbursement rates for child-care providers participating in the Texas Rising Star Program.
Summary
HB 2294 amends the Government Code to allow local workforce development boards to reimburse Texas Rising Star child-care providers at the board’s maximum reimbursement rate for the provider’s rating level, even if that rate is higher than the provider’s published rate. This authority is limited by a safeguard: the higher reimbursement can be used only if it does not lower the Texas Workforce Commission’s target performance measure for the average number of children receiving subsidized child care each day in the workforce area.
The bill is aimed at improving reimbursement flexibility for child-care providers participating in the Texas Rising Star Program, which is the state’s quality rating system for child care. It takes effect September 1, 2025, and applies statewide through local workforce boards administering subsidized child care funds.
Impact
The bill adds a new subsection to Section 2308.3151 of the Government Code, changing how workforce development boards may set reimbursement rates for Texas Rising Star providers. It gives boards discretion to pay the maximum rate tied to a provider’s rating level without regard to the provider’s published rate, but only when doing so will not reduce the commission’s child-care service performance target. The practical effect is to expand potential reimbursement for qualifying providers while preserving existing performance-based constraints on subsidized child-care capacity.
Sentiment
The available voting history suggests the bill was generally well received and moved with little opposition. It passed the House by a substantial margin and later advanced in the Senate committee unanimously, indicating broad support for the policy change. No committee transcript was provided, so there is no recorded debate to indicate significant public or legislative concern.
Contention
The main policy tension in the bill is between higher reimbursement for quality-rated child-care providers and maintaining the number of subsidized children served each day. Supporters appear to favor giving boards more flexibility to pay higher rates to Texas Rising Star providers, while the built-in limitation reflects concern that increased reimbursement could reduce the total number of children served if funding is stretched. Because the bill was reported favorably without dissent in committee, any opposition appears limited or unresolved in the available record.
Relating to establishing optional certifications for child-care providers participating in the Texas Rising Star Program and establishing a grant program for those providers.
Relating to a process for determining the rating level of certain child-care facilities operated by providers participating in the Texas Rising Star Program.