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Department of Health and Human Services LB 485 FAQ August 2021

“Helping People Live Better Lives”

| pg. 1 Child Care Subsidy - Legislative Bill 485 Background Legislative Bill (LB) 485 was signed into law by Governor Pete Ricketts on May 24, 2021. LB 485 is a pilot program that will be implemented on August 28, 2021, and will conclude on September 30, 2023. LB 485 will increase the child care subsidy initial federal poverty level (FPL) from 130% of the FPL to 185% of the FPL and redetermination will increase from 185% of the FPL to 200% of the FPL during this time.

Purpose Once a household is initially approved for the child care subsidy the household will then be eligible at each subsequent 12-18 month redetermination period as long as household income does not surpass 200% of the FPL and all other eligibility requirements are met. The pilot program will end on October 1, 2023, and all federal poverty levels will revert to 130% of the FPL for initial households and 185% of the FPL for each subsequent redetermination, effective immediately. Subsequent to October 1, 2023, all households that were approved during the pilot program period will remain on the subsidy program at each subsequent redetermination unless their income surpasses 185% of the FPL. Frequently Asked Questions 1. Q: What is child care subsidy? A: Child care subsidy is a program that utilizes state and federal Child Care and Development Block Grant (CCDBG) funds to assist families with the cost of child care. Applicants must meet eligibility requirements as outlined in CCDBG regulations including, but not limited to, income eligibility and an allowable need for care. 2. Q: What are the new federal poverty income limits? A: The new FPL income limits are based on a household’s total gross income. A chart with the new income limits for households is included below: