HB387 • 2025

AN ACT TO AMEND TITLE 31 OF THE DELAWARE CODE RELATING TO CHILD CARE SUBSIDIES TO INCREASE ELIGIBILITY THRESHOLDS OVER FIVE YEARS.

Children

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hilovsky
Last action: 2026-05-19
Official status: House Appropriations 5/19/26
Effective date: Not listed

Plain English Breakdown

There is a discrepancy between the official bill summary stating changes start July 1, 2026 and expire June 30, 2031, versus Section 1 and Section 2 of the text which specify October 1, 2026 as the start date and June 30, 2032 as the expiration. The JSON reflects the specific dates in the enacted sections.

HB387: Temporary Increase in Child Care Subsidy Income Limits

This bill temporarily raises the income limits for Delaware families to qualify for child care subsidies over a five-year period starting October 1, 2026.

What This Bill Does

Increases the maximum family income allowed to start receiving Purchase of Care subsidies from 200% to 275% of the Federal Poverty Level in stages between October 1, 2026 and June 30, 2031.
Allows families who earn slightly more than the new limits to keep their subsidy for one year if they do not exceed higher income caps set at 325%, 350%, or 375% of the Federal Poverty Level depending on the date.
Caps the amount a family must pay out-of-pocket, known as copayment, at 7% of their gross income during this one-year extension period.
Requires the Department of Health and Social Services to publish an annual report showing enrollment numbers, costs, and demographics by Federal Poverty Level brackets.
Sets a sunset date so that these new rules end on June 30, 2032, returning eligibility limits back to 200% unless the legislature passes another law.

Who It Names or Affects

Delaware families with children whose income is between 200% and 275% of the Federal Poverty Level.
Families currently receiving subsidies who earn slightly above the new entry limits but stay below the higher extension caps.
The Delaware Department of Health and Social Services, which must manage the program changes and submit annual reports.

Terms To Know

Purchase of Care (POC): A state program that pays for child care services for eligible families based on their income level.
Federal Poverty Level (FPL): An official measure used by the government to determine if a family's income is low enough to qualify for certain benefits.
Sunset Clause: A rule that makes a law automatically expire on a specific date unless lawmakers choose to renew it.

Limits and Unknowns

The bill does not specify how much money the state will spend or where those funds come from.
Eligibility limits return to their previous level in June 2032 if no new law is passed before then.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA 1

1 • Hilovsky

PWB 5/7/26

Plain English: This amendment moves the start date for new child care subsidy rules from October 1 to July 1.

The bill will now take effect on July 1 instead of October 1.

Bill History

2026-05-19 Delaware General Assembly
Assigned to Appropriations Committee in House
2026-05-14 Delaware General Assembly
Reported Out of Committee (Health & Human Development) in House with 2 Favorable, 7 On Its Merits
2026-05-07 Delaware General Assembly
Amendment HA 1 to HB 387 - Introduced and Placed With Bill
2026-04-30 Delaware General Assembly
Introduced and Assigned to Health & Human Development Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 31 OF THE DELAWARE CODE RELATING TO CHILD CARE SUBSIDIES TO INCREASE ELIGIBILITY THRESHOLDS OVER FIVE YEARS.
This Act temporarily addresses Delaware's childcare crisis by gradually increasing Purchase of Care eligibility from 200% to 275% FPL over 5 years starting July 1, 2026, reducing benefit cliffs and supporting moderate-income families. It includes a sunset clause expiring June 30, 2031, to allow evaluation and ensure fiscal sustainability, with annual reporting on impacts.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Hilovsky & Rep. Ross Levin & Rep. Harris & Sen. Buckson

Reps. Gray, Morrison, Wilson-Anton, Burns, Snyder-Hall; Sen. Pettyjohn

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 387

AN ACT TO AMEND TITLE 31 OF THE DELAWARE CODE RELATING TO CHILD CARE SUBSIDIES TO INCREASE ELIGIBILITY THRESHOLDS OVER FIVE YEARS.

WHEREAS, Delaware faces a childcare crisis with high costs averaging $15,607 annually for infant care and regulatory barriers limiting provider expansion, impacting workforce participation and family stability; and

WHEREAS, the current Purchase of Care (POC) program entry eligibility at 200% of the Federal Poverty Level (FPL) leaves many working families ineligible despite affordability challenges, with phase out to 300% FPL providing limited relief; and

WHEREAS, gradually and temporarily increasing POC eligibility to 275% FPL over 5 years will support moderate-income families, reduce benefits cliffs, and allow for evaluation of long-term impacts; and

WHEREAS, Delaware’s labor force participation rate of 59.4% in late 2025 remains the lowest in the Mid-Atlantic region and well below the national average of 62.9%, limiting economic productivity and growth; and

WHEREAS, expanded childcare subsidies in states like North Carolina have reduced employee turnover and absenteeism, contributing to $5.65 billion in avoided annual economic losses from childcare disruptions, while boosting labor force participation among parents; and

WHEREAS, similar expansions in Michigan have increased workforce stability, with 82% of participating families reporting sustained employment and 81% achieving career goals, leading to higher job satisfaction and reduced absenteeism; and

WHEREAS Kentucky’s childcare investments, including subsidies for workers, have improved employee retention by15-20% in participating businesses, enhancing productivity and reducing turnover costs estimates at $9,350 per parent annually nationwide; and

WHEREAS, these reforms could elevate Delaware’s 29

th

ranking in CNBC’s America’s Top States for Business 2025 by fostering small business viability through lower absenteeism and higher retention, while supporting corporate growth via a more reliable workforce; and

WHEREAS, by alleviating childcare concerns, such measures enhance job performance, reduce stress-related productivity losses, and raise the standard of living for young families, mirroring gains in states where childcare access has increased household earnings and economic output by up to 1.09% annually; and

WHEREAS, a sunset clause after 5 years ensures fiscal responsibility and opportunity for legislative review based on program outcomes.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Title 31 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 3903. Eligibility for childcare subsidies

(a) A family is eligible for childcare subsidies under the Purchase of Care program if the family’s gross income does not exceed 200% of the following percentages of the Federal Poverty Level (FPL), adjusted annually:

(1) For the period beginning October 1, 2026 through June 30, 2027, 225% of the FPL;

(2) For the period beginning October 1, 2027 through June 30, 2029, 250% of the FPL;

(3) For the period beginning October 1, 2029 through June 30, 2031, 275% of the FPL.

(b) Families exceeding the entry threshold at redetermination may continue subsidies up to the following for 12 months, with copayment capped at 7% of income:

(1) For the period beginning October 1, 2026 through June 30, 2027, 325% of the FPL;

(2) For the period beginning October 1, 2027 through June 30, 2029, 350% of the FPL;

(3) For the period beginning October 1, 2029 through June 30, 2031, 375% of the FPL.

(c) The Department of Health and Social Services shall administer this section and report annually on enrollment, costs, and demographics by FPL brackets.

Section 2. Sunset Clause. The amendments made by Section 1 of this Act shall expire on June 30, 2032, unless extended by further act of the General Assembly. Upon expiration, eligibility shall revert to 200% of the FPL, subject to any subsequent legislation.

Section 3. This Act takes effect upon enactment, with eligibility changes effective October 1, 2026.

SYNOPSIS

This Act temporarily addresses Delaware's childcare crisis by gradually increasing Purchase of Care eligibility from 200% to 275% FPL over 5 years starting July 1, 2026, reducing benefit cliffs and supporting moderate-income families. It includes a sunset clause expiring June 30, 2031, to allow evaluation and ensure fiscal sustainability, with annual reporting on impacts.