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Summary of Related Federal Law The child care subsidy program is funded in part by the Child Care Development Fund and must comply with the requirements of 45 CFR Part 98, including the equal access provisions related to payment rates, copayments, and payment practices in 45 CFR 98.45. 45 CFR 98.45 (a) provides that the Lead Agency shall certify that the payment rates for the provision of child care services under this part are sufficient to ensure equal access, for eligible families in the area served by the Lead Agency, to child care services comparable to those provided to families not eligible to receive CCDF assistance or child care assistance under any other Federal, State, or tribal programs. 45 CFR 98.45 (k) provides that Lead Agencies shall establish, and periodically revise, by rule, a sliding fee scale for families that receive CCDF child care services that does all of the following: (1) Helps families afford child care and enables choice of a range of child care options. (2) Is based on income and the size of the family and may be based on other factors as appropriate, but may not be based on the cost of care or amount of subsidy payment. (3) Provides for affordable family co-payments that are not a barrier to families receiving assistance under this part. (4) At Lead Agency discretion, allows for co-payments to be waived for families whose incomes are at or below the poverty level for a family of the same size, that have children who receive or need to receive protective services, or that meet other criteria established by the Lead Agency. 45 CFR 98.45 (L) (3) provides that the Lead Agency shall demonstrate in its CCDF plan that it has established payment practices applicable to all CCDF child care providers that reflect generally-accepted payment practices of child care providers that serve children who do not receive CCDF subsidies, which must include all of the following (unless the Lead Agency provides evidence in the Plan that such practices are not generally-accepted in the State or service area): (i) Paying on a part-time or full-time basis (rather than paying for hours of service or smaller increments of time). (ii) Paying for reasonable mandatory registration fees that the provider charges to private- paying parents.

Summary of Data and Analytical Methodologies The proposed rules make changes required for approval of Wisconsin’s 2022-2024 Child Care Development Fund Plan.

Comparison to Adjacent States Illinois: The child care assistance program does not pay for registration or enrollment fees. Copayment amounts are based on gross monthly income and family size. The copayment amount for families with a parent who is a child care worker and families whose income is below 100 percent of the federal poverty level is $1 per month. Copayments are not assessed for kinship care relatives, families experiencing homelessness, parenting youth who are in out-of-