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Federal recommendations • Child Care Scholarship market rates not increased in six years. The reimbursement rates MSDE/State Board recommended to cut 10% from 70th% to law limit of 60th% therefore any market rate will not have the financial impact intended to align with inflation and increasing costs of doing business. • Health and Human Services define affordable child care as costing no more than 7% of a family’s annual income, however Maryland far exceeds this recommendation with families often paying over 25% of income. A typical Maryland family with two children may spend over $30,000 annually for child care. • Child Care Scholarship Program administrative issues with advance payment model. /