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House Early Childhood Committee advances legislation to raise child care subsidy rates

Thursday, April 23, 2020

SAINT PAUL, Minn. — Today, the Minnesota House Early Childhood Finance and Policy Committee advanced legislation that would use federal funding to increase payment rates for Minnesota’s child care subsidy program. The Child Care Assistance Program, or CCAP, currently supports families and pays providers at rates below those required under federal law, putting the state at risk of federal penalties.

“Minnesota’s system for early care and learning was in financial crisis even before the pandemic,” said Rep. Dave Pinto (DFL – St. Paul), chair of the committee. “Raising payment rates using federal dollars that are awaiting use for exactly this purpose should be a no-brainer.” 

Payment rates under CCAP are currently based on a market survey from 2011. HF 4374, authored by Rep. Pinto, would base rates on the most recent survey, as required under federal law. Most of the $86.4 million cost over the next three years would be paid using federal funds that the state has already received. Minnesota faces a penalty of more than $5 million if it fails to make this change.

Video of the hearing will be available on House Public Information Services’ YouTube channel.