Income eligibility for child care subsidies permanently raised

Thousands of Nebraska families will continue to have access to the child care subsidy. Gov. Jim Pillen ceremoniously signed LB 304 on Tuesday. The bill permanently raises the income eligibility for the assistance. Experts acknowledge child care is a multi-faceted issue in the state, with affordability being a main factor. Several studies have shown parents often have to make a choice between keeping a job or sending their child to a safe place for care, and this bill directly addresses that. “Being moms and dads takes a lot, but sometimes moms and dads need some help. So for me, this was a no-brainer,” Pillen said. Pillen joined multiple state senators and dozens of community members at Kids Can Community Center on Tuesday to celebrate LB 304 becoming law. “It provides dignity to these working families, gives them the assistance they need to stay in the workforce, stay off welfare,” Sen. Brad Von Gillern said. The bill keeps the eligible income level to receive child care assistance set at 185% above the federal poverty level. According to First Five Nebraska, that’s equivalent to a family of four making $61,050 or less. If the bill did not pass this year, the level would have been lowered to 130% above the FPL. By the Numbers ~ $33,000: poverty line for a family of four in 2026 130% FPL = to family of four making ~ $42,900 or less160% FPL = to a family of four making ~ $52,800 or less185% FPL = to a family of four making ~ $61,050 or less*According to First Five NebraskaThe permanent raise allows thousands to continue to access the assistance.In 2024, Pillen signed the Child Care Tax Credit Act, creating a refundable Nebraska state tax credit for parents or legal guardians of qualifying children age 5 and younger. To be eligible, a taxpayer’s total household income must be $150,000 or less, and the child must be claimed as a dependent for federal income tax purposes.According to the governor’s office, the credit provides $2,000 per qualifying child for households with income of $75,000 or less and $1,000 per qualifying child for households with income greater than $75,000 but not more than $150,000. The refundable credit was designed to help Nebraska families offset the cost of childcare while supporting workforce participation and economic growth.LB 304 builds on Nebraska’s broader childcare initiatives by making the state’s expanded childcare subsidy eligibility provisions permanent. Together, the tax credit and expanded subsidy program provide complementary forms of support to help Nebraska families access affordable childcare, the governor’s office wrote in a statement.”We are state-licensed child care, so there’s a significant portion of our families that depend on child care subsidies,” Robert Patterson, CEO of Kids Can Community Center, said. “Our programs are really for the kids, you know, to make sure that they’re ready for school and engaged in school once they get there. But more importantly, it’s so that their parents know their kids are in a safe place, but they can go to work.”First Five Nebraska said child care costs can range between $9,000 and $15,000 annually for Nebraska families. LB 304 was state senator Wendy DeBoer’s priority bill. “So many Nebraskans are touched by the issue of child care, and it’s a way to really help make lives better,” DeBoer said. While the bill does support early childhood education, DeBoer said it benefits all Nebraskans because it allows parents to stay in the workforce. “We’re helping the economy of Nebraska right now so that we can have people who want to work who are willing to work, just need a safe place for their kids, have that opportunity to do so,” DeBoer said. The bill passed through the legislature with overwhelming bipartisan support. Lawmakers said that speaks to how large of an issue this is across the entire state. “Much of this program is paid for by the Childcare Development Block Grant from the federal government. So, we’re thankful to the federal partners that we work with and the state and local partners that are really taking this, as you say, across the state,” DeBoer said.State leaders also acknowledged that while LB 304 is a positive step in addressing the child care crisis, they said more still needs to be done to add accessible options. They have taken steps to start to address that issue with businesses. “LB 1165, which we passed this year, that allows for the use of tax credits that are given as incentives to businesses to use those for childcare,” Von Gillern said. “That was a change that we passed this year. So it’s another way to provide assistance to working families. And that actually flows through their employer. So we’re really pleased to see that go forward also.”Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |