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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1177
Introduced by DeBoer, 10.
Read first time January 21, 2026
Committee: Appropriations
A BILL FOR AN ACT relating to child care; to create the Child Care Cash1
Fund to be administered by the Department of Health and Human2
Services as prescribed; and to state legislative intent.3
Be it enacted by the people of the State of Nebraska,4
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Section 1. The Legislature finds that: 1
(1) The Child Care Cash Fund is a permanent tool to reinforce the2
state's workforce, strengthen economic growth, and support families3
through sustained investment in the state's child care system. Child care4
is foundational economic infrastructure and that long-term, reliable5
funding is essential to the state's ability to attract, retain, and6
support a stable workforce; 7
(2) Access to the child care subsidy is a key driver of workforce8
participation, family stability, and positive outcomes for children9
across Nebraska; and 10
(3) The Child Care Cash Fund shall be primarily dedicated to (a)11
preserving access to the child care subsidy for eligible working12
families, (b) supporting continuity and stability in child care for young13
children, and (c) ensuring the long-term viability of child care14
providers in both urban and rural communities. 15
Sec. 2. (1) The Child Care Cash Fund is created and shall be16
administered by the Department of Health and Human Services and shall17
consist of transfers authorized by the Legislature from the General Fund,18
private gifts, grants, or donations for the purposes of the fund, and19
other funds as directed by the Legislature. Any money in the Child Care20
Cash Fund available for investment shall be invested by the state21
investment officer pursuant to the Nebraska Capital Expansion Act and the22
Nebraska State Funds Investment Act. 23
(2) The Child Care Cash Fund shall be used for the child care24
subsidy program including: (a) Ensuring continuity of care for families;25
(b) making timely payments to child care providers; (c) supporting26
reimbursement rates sufficient to promote provider stability and access27
to care; (d) administrative costs necessary to operate the child care28
subsidy program; (e) quality improvement and workforce supports for child29
care providers; and (f) other child care uses as authorized by the30
Legislature. 31
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(3) The fund shall not be used to supplant the state's required1
match for the child care subsidy. 2
(4) It is the intent of the Legislature to appropriate XXX from the3
Child Care Cash Fund annually for the purposes described in this section.4
(5) The department shall electronically submit an annual report to5
the Legislature that includes: (a) Amounts credited to, and expended6
from, the Child Care Cash Fund; (b) the monthly number of families and7
children served by the child care subsidy by income eligibility level and8
eligibility reason; (c) the number of child care subsidy applications9
received, accepted, and denied per month; (d) for denied applications,10
the reason for denial; and (e) the number of pending child care subsidy11
applications per month. 12
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