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SF353 • 2026

A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

Children
Passed Legislature

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

Sponsor
PETERSEN, WINCKLER, DONAHUE, STAED, BLAKE, TRONE GARRIOTT, BENNETT, DOTZLER, ZIMMER, TOWNSEND and CELSI
Last action
2025-02-20
Official status
Subcommittee: Klimesh, Costello, and Petersen. S.J. 328 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

What This Bill Does

  • A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-02-20 Iowa Legislature

    Subcommittee: Klimesh, Costello, and Petersen. S.J. 328 .

  2. 2025-02-18 Iowa Legislature

    Introduced, referred to Health and Human Services. S.J. 295 .

Official Summary Text

A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

Current Bill Text

Read the full stored bill text
Senate

File

353

-

Introduced

SENATE

FILE

353

BY

PETERSEN

,

WINCKLER

,

DONAHUE

,

STAED

,

BLAKE

,

TRONE

GARRIOTT

,

BENNETT

,

DOTZLER

,

ZIMMER

,

TOWNSEND

,

and

CELSI

A

BILL

FOR

An

Act

relating

to

state

child

care

assistance

income

1

eligibility

requirements,

and

child

care

provider

2

reimbursement

rates.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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Section

1.

Section

237A.13,

subsection

2,

paragraph

a,

Code

1

2025,

is

amended

to

read

as

follows:

2

a.

(1)

(a)

One

On

or

before

June

30,

2025,

one

hundred

3

sixty

percent

of

the

federal

poverty

level

applicable

to

the

4

family

size

for

children

needing

basic

care.

5

(b)

Beginning

July

1,

2025,

and

ending

June

30,

2026,

one

6

hundred

seventy

percent

of

the

federal

poverty

level

applicable

7

to

the

family

size

for

children

needing

basic

care.

8

(c)

Beginning

July

1,

2026,

and

ending

June

30,

2027,

one

9

hundred

eighty

percent

of

the

federal

poverty

level

applicable

10

to

the

family

size

for

children

needing

basic

care.

11

(d)

Beginning

July

1,

2027,

and

ending

June

30,

2028,

one

12

hundred

ninety

percent

of

the

federal

poverty

level

applicable

13

to

the

family

size

for

children

needing

basic

care.

14

(e)

On

or

after

July

1,

2028,

two

hundred

percent

of

15

the

federal

poverty

level

applicable

to

the

family

size

for

16

children

needing

basic

care.

17

(2)

(a)

Two

On

or

before

June

30,

2025,

two

hundred

percent

18

of

the

federal

poverty

level

applicable

to

the

family

size

for

19

children

needing

special

needs

care.

20

(b)

Beginning

July

1,

2025,

and

ending

June

30,

2026,

two

21

hundred

ten

percent

of

the

federal

poverty

level

applicable

to

22

the

family

size

for

children

needing

special

needs

care.

23

(c)

Beginning

July

1,

2026,

and

ending

June

30,

2027,

two

24

hundred

twenty

percent

of

the

federal

poverty

level

applicable

25

to

the

family

size

for

children

needing

special

needs

care.

26

(d)

Beginning

July

1,

2027,

and

ending

June

30,

2028,

two

27

hundred

thirty

percent

of

the

federal

poverty

level

applicable

28

to

the

family

size

for

children

needing

special

needs

care.

29

(e)

Beginning

July

1,

2028,

and

ending

June

30,

2029,

two

30

hundred

forty

percent

of

the

federal

poverty

level

applicable

31

to

the

family

size

for

children

needing

special

needs

care.

32

Sec.

2.

Section

237A.13,

subsection

4,

Code

2025,

is

amended

33

to

read

as

follows:

34

4.

a.

The

department

shall

set

reimbursement

rates

as

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353

authorized

by

appropriations

enacted

for

payment

of

the

1

reimbursements.

The

department

shall

conduct

a

statewide

2

reimbursement

rate

survey

to

compile

information

on

each

3

county

,

and

the

survey

shall

be

conducted

at

least

every

two

4

years.

The

department

shall

set

rates

in

a

manner

so

as

to

5

provide

incentives

for

an

unregistered

provider

to

become

6

registered.

7

b.

The

department

shall

not

modify

set

reimbursement

rates

8

to

for

the

state

child

care

assistance

program

or

financial

9

eligibility

requirements

for

a

family

participating

in

the

10

state

child

care

assistance

program

without

prior

enabling

11

legislation

in

this

state

passed

on

or

after

January

1,

2023

at

12

rates

no

less

than

the

sixty-fifth

percentile,

but

no

more

than

13

the

eightieth

percentile,

of

the

rates

child

care

providers

14

charge

private

pay

customers

as

reported

in

the

most

recently

15

completed

statewide

reimbursement

rate

survey

.

16

EXPLANATION

17

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

18

the

explanation’s

substance

by

the

members

of

the

general

assembly.

19

This

bill

relates

to

the

state

child

care

assistance

(CCA)

20

program

income

eligibility

requirements

and

child

care

provider

21

(provider)

reimbursement

rates.

22

Under

current

law,

for

a

child

to

be

eligible

for

entry

into

23

the

CCA

program,

the

child’s

family

must

have

income

below

160

24

percent

of

the

federal

poverty

level

(FPL)

applicable

to

a

25

family’s

size

for

a

child

needing

basic

care,

or

200

percent

26

of

the

FPL

for

a

child

needing

special

needs

care.

The

bill

27

increases

the

CCA

program

income

eligibility

limit

for

children

28

needing

basic

care

to

170

percent

of

the

FPL

for

FY

2025-2026;

29

180

percent

of

the

FPL

for

FY

2026-2027;

190

percent

of

the

FPL

30

for

FY

2027-2028;

and

200

percent

of

the

FPL

on

or

after

July

1,

31

2028.

The

bill

increases

the

CCA

program

income

eligibility

32

limit

for

children

needing

special

needs

care

to

210

percent

33

of

the

FPL

for

FY

2025-2026;

220

percent

of

the

FPL

for

FY

34

2026-2027;

230

percent

of

the

FPL

for

FY

2027-2028;

and

240

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353

percent

of

the

FPL

on

or

after

July

1,

2028.

1

The

reimbursement

rates

paid

to

providers

under

the

CCA

2

program

are

based

on

statewide

reimbursement

rate

surveys

that

3

the

department

of

health

and

human

services

(HHS)

conducts

at

4

least

every

two

years

to

collect

data

on

providers’

private

pay

5

rates.

Under

current

law,

CCA

reimbursement

rates

must

be

set

6

at

rates

no

less

than

the

65th

percentile,

but

no

more

than

the

7

80th

percentile,

of

rates

child

care

providers

charge

private

8

pay

customers

as

reported

in

the

2020

statewide

reimbursement

9

rate

survey.

The

bill

requires

HHS

to

base

CCA

reimbursement

10

rates

on

the

most

recently

completed

statewide

reimbursement

11

rate

survey.

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