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Page 8 Children and Families -- TANF and Economic Support Programs (Paper #211) 3. Take no action. B. Increase Maximum Reimbursement Rates 1. Provide $32,917,000 FED annually to increase payment rates for direct child care subsidies under the Wisconsin Shares program. It is estimated that this funding would increase maximum reimbursement rates to the 62nd percentile of the 2025 market rate survey.

2. Provide $32,917,000 FED in 2025-26 and $61,600,000 in 2026-27 to increase payment rates for direct child care subsidies under the Wisconsin Shares program. It is estimated that this funding would increase maximum reimbursement rates to the 75th percentile of the 2025 market rate survey in 2026-27.

3. Provide one of the following amounts of funding so that all maximum reimbursement rates exceed one of the following target percentiles as measured by the 2025 market rate survey: (a) $23,900,000 FED in 2025-26 and $24,900,000 in 2026-27 to raise rates to the 60th percentile; (b) $18,900,000 FED in 2025-26 and $19,600,000 FED in 2026-27 to raise rates to the 55th percentile; (c) $12,400,000 in 2025-26 and $12,900,000 in 2026-27 to raise rates to the 50th percentile; or (d) $6,900,000 in 2025-26 and $7,200,000 in 2026-27 to raise rates to the 40th percentile.

4. Take no action. C. Replace Subsidy Phaseout with a 150% FPL Copayment Waiver and 7% Income Copayment Cap 1. Provide $22,705,500 FED in 2026-27 to implement a Wisconsin Shares policy that would: (a) increase the copayment waiver to 150% of the FPL; and (b) limit a participating family's copayment to be no more than 7% of family income. Further, repeal the subsidy phaseout under current law such that instead of increasing by $1 for every $5 a participating family earns above the 200% FPL threshold, DCF would set copayments under its current law authority to be $0 until the ALT B1 Change to Base

FED $65,834,000 ALT B2 Change to Base

FED $94,517,000 ALT B3 Change to Base

a. FED $48,800,000 b. FED 38,500,000 c. FED 25,300,000 d. FED 14,100,000