1.1 A bill for an act
1.2 relating to child care; establishing a program to assist families with the cost of
1.3 child care; amending Minnesota Statutes 2024, section 142A.44, subdivision 2;
1.4 proposing coding for new law in Minnesota Statutes, chapter 142D.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 142A.44, subdivision 2, is amended to read:
1.7 Subd. 2.Development.In developing the plan and implementing the program under
1.8this section, the commissioner shall:
1.9 (1) identify ways to integrate the functions, administrative structures, and funding
1.10mechanisms of early care and learning programs administered by the state with the great
1.11start scholarships program;
1.12 (2) consider the recommendations made by the Great Start for All Minnesota Children
1.13Task Force under Laws 2021, First Special Session chapter 7, article 14, section 18,
1.14subdivision 2;
1.15 (3) create a process and timeline to transition the following families to the great start
1.16scholarships program by July 1, 2028:
1.17 (i) families with at least one child receiving an early learning scholarship under section
1.18142D.25; and
1.19 (ii) families with at least one child who is not yet in kindergarten and is receiving child
1.20care assistance under section 142E.04 or 142E.08 for care received from a provider licensed
1.21under Minnesota Rules, chapter 9502 or 9503, or Tribally licensed, or a Head Start program
1.22that has a rating under section 142D.13; and
1Section 1.
REVISOR DTT/NS 25-0374602/13/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1383
NINETY-FOURTH SESSION 2.1 (iii) families with at least one child receiving a great start affordability scholarship under
2.2section 142D.26;
2.3 (4) create mechanisms for members of local communities, including families and members
2.4of the early care and learning workforce, to have input in decisions regarding needs and
2.5preferences for early care and learning options;
2.6 (5) develop a proposed method for funding early care and learning slots in response to
2.7local need through contracts with eligible providers that may be used to deliver services
2.8that meet quality and compensation standards with the intent to build early care and learning
2.9capacity statewide for children from birth to kindergarten entry; and
2.10 (6) consider how to maximize available federal resources while maintaining access to
2.11child care assistance funding under sections 142E.04 or 142E.08 for school-age children.
2.12The commissioner, in consultation with an appropriate state agency, may seek federal
2.13technical assistance or outside consultation as necessary to provide minimally burdensome
2.14program access to all participating families.
2.15 Sec. 2. [142D.26] GREAT START AFFORDABILITY SCHOLARSHIPS.
2.16 Subdivision 1.Establishment; purpose.The commissioner of children, youth, and
2.17families shall establish a great start affordability scholarship program. The purpose of the
2.18program is to increase the affordability of high-quality early care and learning for families
2.19with children from birth to kindergarten entry, to meet as near as possible the standard that
2.20no Minnesota family pay more than seven percent of annual income for early care and
2.21learning.
2.22 Subd. 2.Family and child eligibility.(a) For a family to receive a scholarship under
2.23this section, parents or guardians must:
2.24 (1) have income less than 150 percent of the state median income; and
2.25 (2) have an eligible child as defined in section 142D.25, subdivision 2, paragraph (b),
2.26who is not concurrently a recipient of child care assistance under chapter 142E, or an early
2.27learning scholarship under section 142D.25.
2.28 (b) A child who receives a scholarship under this section must continue to receive the
2.29scholarship each year until the child is eligible for kindergarten under section 120A.20,
2.30provided the child's family complies with the renewal requirements in subdivision 4,
2.31paragraph (b), and provided money is available.
2Sec. 2.
REVISOR DTT/NS 25-0374602/13/25 3.1 (c) A child from an adjoining state whose family resides at a Minnesota address as
3.2assigned by the United States Postal Service, who has received developmental screening
3.3under sections 142D.09 to 142D.093, who intends to enroll in a Minnesota school district,
3.4and whose family meets the criteria of paragraph (a) is eligible for a scholarship under this
3.5section.
3.6 (d) A child who receives a scholarship under this section, is at least three years old, and
3.7has not completed development screening under sections 142D.09 to 142D.093, must
3.8complete that screening within 90 days of first attending an eligible program.
3.9 Subd. 3.Early care and learning program eligibility.(a) To be eligible to accept a
3.10scholarship under this section, an early care and learning program must participate in the
3.11quality rating and improvement system under section 142D.13.
3.12 (b) An early care and learning program accepting a scholarship under this section must
3.13use the revenue to supplement and not supplant federal funding.
3.14 Subd. 4.Administration.(a) The commissioner shall establish application timelines
3.15and procedures that meet the operational needs of eligible families.
3.16 (b) A scholarship is awarded for a 12-month period. To continue to receive a scholarship
3.17for an eligible child, a family must renew a scholarship prior to the end of the award period.
3.18The commissioner must establish a process by which a family may request a modification
3.19in scholarship amount due to changes in the family's circumstances prior to renewing a
3.20scholarship.
3.21 (c) The commissioner must cancel a scholarship for an eligible child under the following
3.22conditions:
3.23 (1) the child has not been accepted and subsequently enrolled in an eligible program
3.24within three months of the scholarship award;
3.25 (2) the child moves out of state;
3.26 (3) the child no longer has scholarship-eligible costs, fees, or tuition;
3.27 (4) the child's family is unresponsive for more than 30 days; or
3.28 (5) the child's family declines to continue to receive the scholarship.
3.29 Subd. 5.Scholarship amounts.The commissioner must establish a schedule of monthly,
3.30per-child scholarship amounts based on family income. The minimum per-child scholarship
3.31amount allowed under this section is $100 per month.
3Sec. 2.
REVISOR DTT/NS 25-0374602/13/25 4.1 Subd. 6.Payment practices.(a) The commissioner must establish a system to make
4.2scholarship payments to an eligible program selected by a scholarship recipient's family.
4.3The payment system must:
4.4 (1) ensure that a program receives payment for services in accordance with a written
4.5agreement completed by the program and the scholarship recipient's family that identifies
4.6amounts awarded under this section as a state-provided benefit;
4.7 (2) make scholarship payments in advance of or at the beginning of the delivery of
4.8services;
4.9 (3) make payments based on a child's enrollment rather than attendance; and
4.10 (4) include a process for transferring scholarship awards between eligible programs,
4.11when initiated by a scholarship recipient. Under the process, the commissioner:
4.12 (i) may adjust scholarship payment schedules for eligible programs to account for changes
4.13in a scholarship recipient's enrollment; and
4.14 (ii) must specify a period of time for which scholarship payments must continue to an
4.15eligible program for a scholarship recipient who transfers to a different eligible program.
4.16 (b) Payments to eligible programs for scholarships awarded under this section must start
4.17no later than July 1, 2026.
4.18 Subd. 7.Family notifications.(a) The commissioner must notify families in the state
4.19about potential eligibility and the opportunity to apply for scholarships under this section.
4.20 (b) An eligible program must identify the portion of a scholarship recipient's tuition that
4.21is paid for under this section as state-provided assistance on any tuition billing statements
4.22provided to the recipient's family.
4.23 Subd. 8.Great start affordability scholarship account.(a) A great start affordability
4.24scholarship account is established in the special revenue fund. Money appropriated for great
4.25start affordability scholarships under this section must be transferred to the account in the
4.26special revenue fund.
4.27 (b) Money in the account is annually appropriated to the commissioner for great start
4.28affordability scholarships under this section. Any returned money is available to be regranted.
4.29 (c) The commissioner may use up to seven percent of the money under paragraph (b)
4.30for costs associated with administering and monitoring the scholarships, including but not
4.31limited to making payments to eligible programs for the administrative costs associated
4.32with accepting scholarships under this section. The payment to an eligible program for
4Sec. 2.
REVISOR DTT/NS 25-0374602/13/25 5.1administrative costs must be based on a percentage, as determined by the commissioner, of
5.2the total scholarship payment made to the eligible program.
5Sec. 2.
REVISOR DTT/NS 25-0374602/13/25