Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Lawmakers consider boost to MN's child care assistance reimbursement rates

Minnesota’s Child Care Assistance Program provider reimbursement rates are well below the national average, and providers say that’s jeopardizing the industry and disadvantaging families.

Sponsored by Rep. Liz Boldon (DFL-Rochester), HF1747 would increase the rates paid to child care providers under the assistance program and eliminate the basic sliding fee program waitlist for families.

The bill was held over by the House Early Childhood Finance and Policy Committee Tuesday for possible omnibus bill inclusion. The companion, SF1574, awaits action by the Senate Human Services Reform Finance and Policy Committee. Sen. Melissa Wiklund (DFL-Bloomington) is the sponsor.

The program provides subsidies to low-income families for early childhood opportunities while parents are working or in school.

Under current law, the state’s reimbursement rate for providers is set at the 25th percentile based on the 2018 child care provider rate survey administered by the Department of Human Services. The bill would increase the maximum rates to the 75th percentile of the most recent survey.  

The bill would also direct Minnesota Management and Budget to include the basic sliding fee child care assistance obligation in the February and November economic forecasts, beginning in November 2021. This would help to eliminate a waitlist of approximately 2,000 families who are eligible to participate but haven’t been served due to a lack of funds. The proposal includes a yet-to-be-determined appropriation.

Liz Harris, a family child care provider, says the rate increase would be a game changer and could help address child care shortages.  

“By raising the CCAP reimbursement rate and eliminating the waiting list it would entice more providers like me to participate in the program, expanding choices for parents who use it,” she said. “It may also attract new providers into the field.”

 


Related Articles


Priority Dailies

Ways and Means Committee OKs proposed $512 million supplemental budget on party-line vote
(House Photography file photo) Meeting more needs or fiscal irresponsibility is one way to sum up the differences among the two parties on a supplemental spending package a year after a $72 billion state budg...
Minnesota’s projected budget surplus balloons to $3.7 billion, but fiscal pressure still looms
(House Photography file photo) Just as Minnesota has experienced a warmer winter than usual, so has the state’s budget outlook warmed over the past few months. On Thursday, Minnesota Management and Budget...

Minnesota House on Twitter