8.2 Graduated Phase Out

A family whose income is over the initial income eligibility threshold at redetermination will still be considered eligible for child care subsidy provided their family income is at or below 85 percent of the current SMI and they meet other required eligibility criteria. If a family’s income is above 85 percent of the current SMI at redetermination, they may continue to receive subsidized care for up to 90 calendar days. At the end of the 90 calendar days of continued assistance, if the family income is again at or below 85 percent of the current SMI, assistance cannot be terminated, and the child will continue receiving assistance until the next scheduled redetermination. The subsidy will be terminated if the family’s income remains above 85 percent of SMI after 90 calendar days.