CCAP reimbursement rates get boost from new law

The Child Care Assistance Program will have its reimbursement rate boosted for those who provide care for low-income children.

The program provides subsidies that allow these children to access early childhood opportunities while their parents are working or in school.

Sponsored by Rep. Dave Pinto (DFL-St. Paul) and Sen. Michelle Benson (R-Ham Lake), a new law will adjust the reimbursement rate to be set at the 25th percentile based on the 2018 child care provider rate survey administered by the Department of Human Services.

Under current law, the state’s reimbursement rate for providers is set at the 25th percentile based on the 2011 survey.

The change would bring the state into federal compliance, avoiding financial penalties, and free up federal funds available for the program that must be spent within three years.

The law is effective Sept. 18, 2020.

Increased costs would be paid for through a surplus of federal Child Care Development Block Grant funds, with $20.44 million allocated in fiscal year 2021, $32.72 million allocated in fiscal year 2022, and $32.65 million allocated in fiscal year 2023.

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