Iowa Senate Bill SF62

Iowa 2023-2024 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

A bill for an act relating to the state child care assistance eligibility requirements and provider reimbursement rates.

Summary

Senate File 62 focuses on amending the state child care assistance eligibility requirements and provider reimbursement rates in Iowa. It directs the Department of Health and Human Services (HHS) to adjust the income eligibility criteria for families based on their size, establishing a tiered increase in eligibility limits corresponding to the federal poverty level over several years. For instance, the bill proposes setting eligibility ceilings starting at 150 percent of the federal poverty level in 2023 and progressively increasing to 200 percent by 2028. This gradual increase intends to expand access to necessary child care support for lower-income families over time. Moreover, the bill stipulates that families utilizing the child care assistance plus exit program will continue to receive support until their income exceeds 250 percent of the federal poverty level. This provision aims to ensure that families transitioning out of the assistance program won’t immediately lose support just as they begin to earn slightly more, thereby helping to maintain stability during their adjustment period. In addition to eligibility requirements, SF62 addresses provider reimbursement rates. It mandates that, starting in the fiscal year of July 1, 2023, HHS shall base these rates on the latest market rate survey completed in 2021. This requirement is crucial as it seeks to ensure that child care providers are compensated fairly and are able to sustain their operations while delivering essential services to families in need. The overall impact of SF62 is expected to enhance child care support for families in Iowa while providing fairer compensation to providers. However, there may be concerns regarding budget allocations and the long-term sustainability of such expansions in assistance. Discussions around potential fiscal impacts and the effectiveness of the amended eligibility criteria are likely to arise as the bill moves through legislative processes.