Require the Department of Health and Human Services to file a state plan amendment relating to child care
LB13 would change Nebraska law governing participation in the federal Child Care Subsidy program by directing the Department of Health and Human Services to file a state plan amendment. The bill updates the state’s child care assistance rules so that Nebraska can participate in the federal subsidy program and expand eligibility and payment rules for child care assistance. It also repeals the original section of statute being amended.
The bill sets out several substantive program changes. It would allow child care assistance for families with incomes up to 185% of the federal poverty level before October 1, 2025, and up to 130% of the federal poverty level on and after that date, with transitional assistance available as families move off cash assistance and, in some cases, until household income reaches 85% of state median income. It also requires licensed child care programs to make reasonable accommodations for certain household members, addresses eligibility when a parent or adult household member is the primary caregiver, and allows enrollment in a different child care program when the provider is eligible for subsidy participation. The bill further requires the department to adopt a fixed-rate schedule, file a state plan amendment for provider payment based on enrollment or authorized hours rather than attendance, and consider separate or tiered rates for infants, children with special needs, and higher-quality providers.
LB13 also changes how the program is financed during the transition period. For a specified period in 2025, federal Child Care and Development Block Grant funds must be used first to cover state costs from the eligibility changes, with TANF funds available if needed, and the bill prohibits use of General Funds for those costs other than administration. It also requires an independent evaluation of the eligibility changes if private funding is available, with a report to the department and the Legislature’s Health and Human Services Committee.
The overall sentiment reflected in the vote history appears generally supportive but not unanimous. The bill advanced after amendments were adopted, including a Health and Human Services amendment and a Cavanaugh amendment, suggesting the proposal was refined during debate. The final advancement vote was 25-14, indicating meaningful support but also notable opposition. The bill was later indefinitely postponed, which suggests that despite some legislative support, it did not ultimately move forward.
The main points of contention appear to center on the scope and cost of expanding child care assistance, the shift in eligibility thresholds, and the requirement that the state file a federal plan amendment to implement the changes. The financing provisions, especially the use of federal block grant and TANF funds and the prohibition on General Fund spending for certain costs, likely reflect concern about state fiscal exposure. Provider payment methodology, quality-based tiered rates, and the operational changes tied to enrollment-based reimbursement may also have been debated as policy and administrative issues.
LB13 would amend Nebraska’s child care subsidy statutes to expand and restructure eligibility, provider payment, and administrative requirements for the Department of Health and Human Services. It would require the department to file a state plan amendment to participate in the federal Child Care Subsidy program, revise income eligibility and transitional assistance rules, establish enrollment-based reimbursement and fixed-rate schedules, and repeal the prior statutory section being replaced. The bill would affect low-income families, child care providers, and DHHS program administration, while also directing how federal and state funds may be used to implement the changes.
The bill appears to have had mixed but substantial support. It received enough votes to advance after amendments were adopted, indicating that many lawmakers were willing to support a child care subsidy expansion with modifications. At the same time, the 25-14 advancement vote shows significant opposition, and the bill’s later indefinite postponement suggests the proposal did not achieve durable consensus. Overall, the discussion history points to a generally favorable policy goal with unresolved concerns about implementation and cost.
The most notable contention likely involved the size of the eligibility expansion, the timing of the income thresholds, and the fiscal implications of broadening child care assistance. Legislators may also have disagreed over the requirement to file a state plan amendment, the use of federal block grant and TANF funds instead of General Funds, and the move to pay providers based on enrollment or authorized hours rather than attendance. Additional policy questions included whether to require reasonable accommodations in licensed child care settings, how to structure transitional assistance, and whether tiered rates for infants, special-needs children, and higher-quality providers should be mandated.