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The Lead Agency sets the second tier of eligibility at an amount lower

than 85 percent of SMI for a family of the same size but above the Lead Agency's initial eligibility threshold. Provide the second tier of eligibility for a family of three. Amendment 3.1.7: The 2020 federal poverty guidelines are in effect as of January 15, 2020. The family income eligibility for child care subsidy is adjusted, effective July 1, 2020, to reflect the FY20 federal poverty guidelines. For a family of three, eligibility is changed to $2,353 (130% FPL) to $3,349 (185% FPL).

Describe how the second eligibility threshold: i. Takes into account the typical household budget of a low-income family: The family income connects to the Federal Poverty Levels (FPL) and adjusted annually for the new FPL amounts. Ten percent of a household's gross earned income shall be disregarded after the household has received Child Care Subsidy for a period of twelve continuous month and at each subsequent redetermined. This is found at: Nebraska Revised Statute 68-1206.

ii. Is sufficient to accommodate increases in family income over time that are typical for low-income workers and that promote and support family economic stability: Once a family is determined eligible and child care is authorized for a 12 to 18 month certification period. If a family's income exceeds 185% FPL during their certification period, they will continue to remain eligible for child care through the remainder of their certification period so long as their income remains under 85% of the State Median Income (SMI). At re-determination, families are determined eligible as long as they still have a need for service and their income is under the second set tier of 185% FPL. If their income exceeds 85% SMI, child care subsidy is closed and they are no longer eligible. This is found at Nebraska Revised Statute 68-1206. The family income connects to the FPL and adjusted annually for the new FPL amounts. Starting 9/2019, the 24 month time limit was removed from Nebraska Revised Statute 68-1206.

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