HB 5628
Relating to mitigating the abrupt loss of child care assistance resulting from modest increases in family income
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to prevent families from losing their child care assistance abruptly when their income slightly increases – a phenomenon known as the ‘child care subsidy cliff.’ It authorizes the Department of Human Services to develop and implement policies that gradually phase out assistance as income rises, ensuring families can maintain access to care while working towards self-sufficiency. The bill also requires the department to report annually on the effectiveness of these mitigation strategies.
Key provisions
- Allows the Department of Human Services to adopt policies to reduce the ‘child care subsidy cliff’ effect.
- May expand sliding fee scales for family copayments based on income.
- Can establish higher exit eligibility thresholds for assistance.
- Permits graduated phase-out structures to prevent sudden loss of benefits.
- Allows adjustment of copayment amounts based on household income.
- May establish transitional eligibility periods to support continuity of care.
- Requires policies to encourage employment and wage growth.
- Mandates an annual report to the Joint Committee on Government and Finance.
Who is affected
- Families receiving child care assistance
- Child care providers
- The Department of Human Services
- Low-income families
- Children and families in need of child care
Notable changes
- Establishes a framework for gradually phasing out child care assistance as income increases.
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