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*hb0849*
HOUSE BILL 849
F5 6lr2650
By: Delegates Mireku –North, McCaskill, Palakovich Carr, Addison, Amprey,
Behler, Boafo , Buckel, Kaiser, Kaufman, Moreno, Phillips, Queen,
Roberson, Ruff, Stinnett, Taylor, Vogel, Wells, White Holland, Williams,
Wims, and Young Young, Ebersole, Feldmark, Pasteur, Patterson, and
Wilkins
Introduced and read first time: February 4, 2026
Assigned to: Ways and Means
Reassigned: Ways and Means and Appropriations, February 12, 2026
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 26, 2026
CHAPTER ______
AN ACT concerning 1
Child Care Scholarship Program – Freeze in Enrollment – Exceptions and 2
Waitlist 3
FOR the purpose of prohibiting a freeze in enrollment in the Child Care Scholarship 4
Program from including certain individuals enrolled in certain governmental 5
support programs, children with siblings enrolled in the Program, individuals with 6
certain employment issues, and individuals employed by a child care provider and 7
children who are homeless; requiring the State Department of Education to establish 8
a waitlist for the Program under certain conditions; requiring the Department to give 9
priority for enrol lment in the Program to certain individuals on the waitlist; 10
requiring the Department to develop a new application for the Program that collects 11
certain information; and generally relating to exceptions to a freeze in enrollment in 12
and a waitlist for the Child Care Scholarship Program. 13
BY repealing and reenacting, with amendments, 14
Article – Education 15
Section 9.5–111 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18
2 HOUSE BILL 849
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Education 3
9.5–111. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) “Analysis” means the market rate survey or an alternative method 6
allowable under federal law. 7
(3) “Program” means the Child Care Scholarship Program. 8
(b) (1) Beginning in 2017, and every 2 years thereafter, the Department shall 9
conduct an analysis in order to formulate appropriate reimbursement rates for the 10
Program. 11
(2) The Department, before conducting the analysis, shall consult with: 12
(i) The Office of Child Care Advisory Council; 13
(ii) Child care resource and referral agencies; 14
(iii) Child care worker organizations; and 15
(iv) Any other appropriate entities. 16
(c) On or before September 1, 2017, and by September 1 every 2 years thereafter, 17
the Department shall report to the Joint Committee on Children, Youth, and Families, the 18
Senate Budget and Taxation Committee, and the House Appropriations Committee, in 19
accordance with § 2–1257 of the State Government Article, on: 20
(1) The methodology of the analysis required under subsection (b) of this 21
section; 22
(2) Cost estimates for raising the Program’s reimbursement rates to the 23
45th, 55th, 65th, and 75th percentile of child care pro viders in each of the State’s market 24
regions; 25
(3) The minimum base payment rate that is required for child care 26
providers to meet health, safety, quality, and staffing requirements in accordance with 27
federal law and the factors used to determine that rate; 28
(4) The rate adjustment that the Department will implement based on the 29
analysis; 30
HOUSE BILL 849 3
(5) Any adjustments to Program eligibility or family copay amount that 1
will be implemented; and 2
(6) Any potential impacts on families and providers due to any adjustments 3
made to the Program. 4
(d) (1) The Governor shall include in the annual State budget an appropriation 5
from all fund sources for the Program that is not less than the total appropriation for the 6
Program in fiscal year 2018 or fiscal year 2019, whichever is greater. 7
(2) Except as provided in paragraph (3) of this subsection, the Department 8
may not make the following alterations to the Program in effect as of January 1, 2023: 9
(i) Reduce the reimbursement rates; 10
(ii) Reduce the income eligibility requirements; or 11
(iii) [Implement] SUBJECT TO SUBSECTION (E) OF THIS SECTION, 12
IMPLEMENT a freeze in Program enrollment. 13
(3) (i) The Department may alter the Program in effect as of January 14
1, 2023, by reducing the reimbursement rates, re ducing the income eligibility 15
requirements, or implementing a freeze in Program enrollment, if: 16
1. The Department submits a notification to the Senate 17
Budget and Taxation Committee, the Senate Committee on Education, Energy, and the 18
Environment, the H ouse Appropriations Committee, and the House Ways and Means 19
Committee, in accordance with § 2–1257 of the State Government Article, on the intended 20
Program alterations, including the reason for, and expected duration of, the proposed 21
actions; and 22
2. The Program alterations identified in the notification are 23
not implemented until the completion of the regular legislative session immediately 24
following the submission of the notification. 25
(ii) If the Board of Public Works approves budget reductions for the 26
Program under § 7 –213 of the State Finance and Procurement Article for a certain fiscal 27
year, the Department may reduce the reimbursement rates, reduce the income eligibility 28
requirements, or implement a freeze in Program enrollment at any time during the fiscal 29
year. 30
(4) The EXCEPT AS PROVIDED IN § 9.5–113(D) OF THIS SUBTITLE, THE 31
Department may not increase the copayment levels of the Program in effect as of January 32
1, 2024. 33
(E) (1) (I) A FREEZE IN PROGRAM ENROLLMENT MAY NOT APPLY TO: 34
4 HOUSE BILL 849
(I) 1. AN INDIVIDUAL OR A FA MILY WHO IS ENROLLED IN 1
THE TEMPORARY CASH A SSISTANCE PROGRAM UN DER § 5–312 OF THE HUMAN 2
SERVICES ARTICLE; 3
(II) 2. AN INDIVIDUAL OR A FA MILY WHO IS ENROLLED IN 4
THE FEDERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM; 5
(III) 3. A CHILD, PARENT, OR CAREGIVER WHO IS ENROLLED 6
IN THE FEDERAL SOCIAL SUPPLEMENTAL SECURITY INCOME PROGRAM; 7
(IV) 4. THE SIBLING OF A CHIL D WHO IS ENROLLED IN THE 8
PROGRAM; AND 9
(V) AN INDIVIDUAL WHO: 10
1. HAS BECOME UNEMPLOYED WITHIN THE PAST 30 11
DAYS; AND 12
2. WOULD HAVE QUALIFIED FOR THE PROGRAM 13
BEFORE BECOMING UNEMPLOYED; 14
(VI) AN INDIVIDUAL WHO: 15
1. IS EMPLOYED BY THE FE DERAL OR STATE 16
GOVERNMENT OR A LOCAL GOVERNMENT IN THE STATE; 17
2. IS INVOLUNTARILY FURL OUGHED FROM WORK 18
WITHOUT PAY BECAUSE OF A GOV ERNMENT SHUTDOWN, LASTING FOR A PERIOD 19
THAT EXCEEDS 7 CONSECUTIVE DAYS, THAT CAUSES FUNDING TO BE UNAVAILABLE 20
TO OPERATE GOVERNMEN TAL ACTIVITIES DUE T O THE LACK OF A LEGI SLATIVE 21
APPROPRIATION OR A CONTINUING RESOLUTION; AND 22
3. WOULD HAVE QUALIFIED FO R THE PROGRAM 23
BEFORE BECOMING FURLOUGHED; AND 24
(VII) AN INDIVIDUAL WHO IS EMPLOYED BY A CHILD CARE 25
CENTER, A FAMILY CHILD CARE HOME, OR A LARGE FAMILY CHILD CARE HOME 26
5. A CHILD WHO IS HOMELESS. 27
(2) (II) AN INDIVIDUAL DESCRIB ED UNDER PARAGRAPH (1) OF 28
THIS SUBSECTION SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL OTHERWISE 29
MEET THE CRITERIA FOR ENROLLMENT IN THE PROGRAM. 30
HOUSE BILL 849 5
(2) (I) IF THE DEPARTMENT ESTABLISHES A FREEZE IN PROGRAM 1
ENROLLMENT, THE DEPARTMENT SHALL ESTABLISH A WAITLIST FOR ELIGIBLE 2
INDIVIDUALS WHO APPLY TO THE PROGRAM AFTER THE FREEZE IS IN EFFECT. 3
(II) THE WAITLIST SHALL RE MAIN IN EFFECT AS LO NG AS 4
THERE ARE FEWER AVAI LABLE AWARDS UNDER T HE PROGRAM THAN ELIGIBLE 5
APPLICANTS FOR THE PROGRAM. 6
(III) THE WAITLIST SHALL PROVIDE AWARDS FOR ENROLLMENT 7
IN THE PROGRAM TO QUALIFIED APPLICANTS IN THE FO LLOWING ORDER OF 8
PRIORITY: 9
1. APPLICANTS WITH THE G REATEST FINANCIAL NEED, 10
BASED ON ANNUAL HOUSEHOLD INCOME; 11
2. APPLICANTS WHO WORK F OR AT LEAS T 20 HOURS A 12
WEEK AS AN EMPLOYEE OR OPERATOR OF A CHILD CARE CENTER, A FAMILY CHILD 13
CARE HOME , A LARGE FAMILY CHILD CARE HOME , OR AN ELIGIBLE PUBLI CLY 14
FUNDED PREKINDERGART EN PROGRAM UNDER TITLE 7, SUBTITLE 1A OF THIS 15
ARTICLE THAT ACCEPTS CHILDREN ENROLLED IN THE PROGRAM; 16
3. APPLICANTS ENROLLING A CHILD UNDER THE AGE OF 17
3 YEARS; AND 18
4. APPLICANTS WHO HAVE BEEN ON THE WAITLIST FOR 19
THE LONGEST PERIOD OF TIME. 20
[(e)] (F) The Governor shall, from all fund sources, appropriate funds in the 21
annual State budget in an amount sufficient to raise the Program’s reimbursement rates 22
for each region to: 23
(1) For fiscal year 2020, not less than the 30th percentile of the most recent 24
market rate survey or its equivalent if an alternative methodology defined by t he 25
Department is used; and 26
(2) For fiscal year 2021 and each fiscal year thereafter, not less than the 27
60th percentile of the most recent market rate survey or its equivalent if an alternative 28
methodology defined by the Department is used. 29
SECTION 2. AND BE IT FURTHER ENACTED, That: 30
(a) The State Department of Education shall develop a new application for the 31
Child Care Scholarship Program that collects information necessary to determine whether 32
an individual is employed for at least 20 hours a week by a child care center, a family child 33
6 HOUSE BILL 849
care home, a large family child care home, or an eligible publicly funded prekindergarten 1
program that accepts Child Care Scholarship recipients. 2
(b) In implementing a waitlist for applicants for the Child Care Scho larship 3
Program as required by § 9.5 –111(e) of the Education Article, as enacted by Section 1 of 4
this Act, the Department shall focus on enrolling other eligible applicants prioritized on the 5
waitlist until the new application is developed in accordance wi th subsection (a) of this 6
section. 7
SECTION 3. AND BE IT FURTHER ENACTED, That: 8
(a) (1) The State Department of Education shall review the methodology used 9
to determine whether a parent or guardian is attending a job training program for the 10
purposes of determining eligibility for a scholarship under the Child Care Scholarship 11
Program. 12
(2) In conducting its review, the Department shall consider alternative 13
methods of measuring job training that could result in qualifying additional applicants. 14
(b) On or before December 15, 2026, the Department shall report to the General 15
Assembly, in accordance with § 2 –1257 of the State Government Article, on the results of 16
its review. 17
SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
July 1, 2026, contingent on the taking effect of Chapter______(H.B. 1321) of the Acts of the 19
General Assembly of 2026, and if Chapter______(H.B. 1321) does not take effect, this Act, 20
with no further action required by the General Assembly, shall be null and void. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.