What's Happening?
In Nebraska, business leaders and state lawmakers are advocating for Legislative Bill 304, which aims to extend the current income eligibility levels for child care subsidies. This bill, if passed, would make permanent the income eligibility caps that
were raised in 2021 from 130% to 185% of the federal poverty level. This change allows a family of four to earn up to $59,000 instead of $42,000 and still qualify for the subsidy. The bill is seen as crucial for maintaining workforce participation, as it would help nearly 3,000 families remain eligible for child care assistance. State Sen. Wendy DeBoer has prioritized this legislation for the 2026 session, despite the state's financial shortfall of $471 million. The bill's supporters argue that the cost of inaction would be greater, citing a report that estimates $1.7 billion in lost business output and $1.6 billion in lost labor income due to inadequate child care.
Why It's Important?
The proposed child care subsidy bill is significant as it addresses a critical issue affecting Nebraska's workforce and economy. By extending the income eligibility for child care subsidies, the bill aims to prevent a potential crisis where families might lose access to affordable child care, forcing parents out of the workforce. This is particularly important in a tight labor market where businesses are struggling to remain fully staffed. The economic impact of inadequate child care is substantial, with significant losses in business output and labor income, as well as state tax revenue. The bill's passage could help mitigate these losses and support economic stability in both urban and rural communities across Nebraska.
What's Next?
If the bill does not pass, Nebraska risks falling to 48th in the nation for access to child care subsidies based on income eligibility. Currently, the state ranks 38th. The bill's supporters, including business leaders and child care advocacy groups, are working to secure the necessary funding and political support to ensure its passage. The outcome will depend on negotiations with the Department of Health and Human Services and the ability to address the state's budget shortfall. The decision will have lasting implications for families, businesses, and the overall economic health of Nebraska.
