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Legislative News and Views - Rep. Dave Pinto (DFL)

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Minnesota House, Senate pass legislation to raise child care subsidy rates

Saturday, June 20, 2020

SAINT PAUL, Minn. — Today, the Minnesota Legislature approved an increase in payment rates for the state’s child care assistance program for the first time since 2014.

“Minnesota’s providers of early care and learning were in financial crisis even before the pandemic,” said Rep. Dave Pinto (DFL – St. Paul), the author of the bill. “The state is now at risk of losing this vital sector altogether. Raising payment rates will help providers continue caring for children so that parents can work, employers can expand, and children can receive the high-quality early learning that will set them up for success in life.”

Federal law requires that state programs such as Minnesota’s Child Care Assistance Program (CCAP) base payment rates on a market survey conducted every several years. CCAP rates are currently based on the survey from 2011, putting the state at risk for millions of dollars in federal penalties.

This legislation bases the rates on the most recent survey from 2018. The cost of this change over the next several years will be covered by federal funds.

The legislation has the support of Governor Walz and Lieutenant Governor Flanagan and is expected to be signed into law soon.