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Children and Families -- TANF and Economic Support Programs (Paper #211) Page 1

Legislative Fiscal Bureau One East Main, Suite 301 • Madison, WI 53703 • (608) 266-3847 • Fax: (608) 267-6873 Email: fiscal.bureau@legis.wisconsin.gov • Website: http://legis.wisconsin.gov/lfb

Joint Committee on Finance Paper #211

Wisconsin Shares Child Care Subsidy Program (Children and Families -- TANF and Economic Support Programs)

[LFB 2025-27 Budget Summary: Page 94, #4, and #5]

CURRENT LAW

Wisconsin Shares Child Care Subsidy Program

The Wisconsin Shares program, administrated by the Department of Children and Families (DCF), provides child care assistance for low-income families to enable parents and other caretakers to work or to prepare for employment through work programs and education or training. Under the program, the state subsidizes the cost of child care charged by providers chosen by the parent. Wisconsin Shares is funded using the federal temporary assistance for needy families (TANF) block grant and the federal child care development fund (CCDF), which consists of funding from the federal child care development block grant (CCDBG) and Title IV-A of the Social Security Act.

The child care subsidy is transferred to an electronic benefit transfer (EBT) account established on behalf of the parent at the beginning of each payment period (generally at the beginning of each month). Parents are free to transfer funds at any time from the EBT account via telephone, website, or an EBT "swipe" card. The charged amounts are immediately and electronically transferred into the child care provider's bank account. Parents are responsible for managing the subsidy they receive and may decide whether to reserve a slot at a child care provider or save subsidy amounts for future use as needed. Parents may select child care providers that charge more than their subsidy amount, but they are responsible for the difference in cost.

DCF uses market surveys to establish the maximum reimbursement amounts Wisconsin Shares will pay for child care in each county. Subsidy amounts are determined by these maximum