What's Happening?
Nebraska business leaders and lawmakers are advocating for Legislative Bill 304, which aims to extend current income eligibility for child care subsidies. The bill seeks to make permanent the eligibility levels set in 2021, which increased the income cap
from 130% to 185% of the federal poverty level. This change allows more families to qualify for assistance, supporting nearly 3,000 families and helping employers maintain staffing levels. The bill faces financial challenges, with an estimated $14 million annual cost, but supporters argue the economic benefits outweigh the expenses.
Why It's Important?
Affordable child care is crucial for Nebraska's workforce, impacting both economic output and labor income. The proposed bill addresses workforce shortages by enabling more parents to remain employed. Without the bill, Nebraska risks falling to 48th in the nation for child care subsidy access, potentially exacerbating workforce challenges. The legislation is seen as a strategic investment to support economic growth, strengthen families, and maintain business competitiveness across the state.
What's Next?
The bill's future depends on securing additional funding to cover its costs. State Senator Wendy DeBoer is working with the Department of Health and Human Services to find a fiscal solution. The bill's passage is critical to maintaining Nebraska's current ranking in child care subsidy access and supporting the state's economic stability. The outcome will influence the state's ability to address workforce needs and support working families.
