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A2242
ASSEMBLY, No. 2242
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
Assemblywoman SHAMA A. HAIDER
District 37 (Bergen)
Co-Sponsored by:
Assemblyman Kearney
SYNOPSIS
���� Establishes "Health Care for Child Care
Program"; appropriates $10 million.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning health insurance coverage for child care
center employees, supplementing Title 17B of the New Jersey Statutes, and
making an appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.���
The
Legislature finds and declares that:
���� a.
��� Though
the child care industry is heavily regulated, child care centers in the State
primarily rely on family-paid tuition and often operate without any
supplemental public assistance.
���� b.��� Child care centers set
tuition rates based on what local families can afford rather than the actual
cost of delivering high-quality child care.
���� c.��� Families that meet
certain income requirements may receive financial assistance for child care,
known commonly as child care subsidies, through the New Jersey Child Care
Assistance Program.
���� d.��� Child care subsidies are
historically low and only cover about 75 percent of the market rate for child
care.
���� e.��� Because neither
family-paid tuition nor child care subsidies cover the true cost of providing
high-quality early childhood education and care, child care centers operate on
razor-thin margins and are frequently unable to offer competitive wages, health
insurance, or retirement plans to child care providers without significantly
raising tuition or cutting other operating costs.
���� f.���� Child care centers that
raise tuition to offer essential employment benefits may render child care
unaffordable for most families and have difficulty accepting families that
receive child care subsidies.
���� g.��� Alternatively, child
care centers that cut operating costs risk compromising health and safety
standards and falling out of compliance with State licensing regulations.
���� h.��� Child care in New Jersey
cannot remain both heavily-regulated and primarily funded by working families
at the expense of the early childhood education and care workforce.
���� i.���� Sustainable public
investment is urgently needed to ensure the quality and stability of the child
care industry in New Jersey.
���� 2.��� a.� There is established
in the Department of Banking and Insurance the �Health Care for Child Care
Program� for the purpose of paying for the health benefits coverage of
individuals employed at child care centers in this State.
���� b.��� The Health Care for
Child Care Program shall be provided through the New Jersey Individual Health
Coverage Program pursuant to P.L.1992, c.161 (C.17B:27A-2 et seq.).� A health
benefits plan provided to an individual pursuant to this section shall include
the highest level of coverage available through the gold level of the New
Jersey Individual Health Coverage Program, and shall include prescription drug
coverage.
���� c.��� To be eligible for a
health benefits plan through the Health Care for Child Care Program, an
individual shall:�
���� (1)� be currently employed at
a child care center licensed pursuant to the provisions of P.L.1983, c.492
(C.30:5B-1 et seq.) or at a registered family child care home that is enrolled
in or rated by Grow NJ Kids;
���� (2)� work a minimum of 30
hours per week at a child care center or family child care home pursuant to
paragraph (1) of this subsection; and
���� (3)� have been employed at a
child care center or family child care home pursuant to paragraph (1) of this
subsection for a period of at least 90 days.���������
���� d.��� The State shall pay the
health benefits plan premiums from the Healthcare for Child Care Fund established
pursuant to subsection f. of this act.� The State shall be responsible for the
payment of all premiums in connection with the health benefits plan and neither
the individual nor the individual�s employer shall be liable for the health
benefits plan premium.
���� e.��� The Department of Labor
and Workforce Development shall provide such information as may be necessary
for the Department of Banking and Insurance to determine the eligibility of
individuals for the program.
���� f.���� There is established a
non-lapsing, revolving fund in the Department of Banking and Insurance to be
known as the �Health Care for Child Care Fund.�� This fund shall be the
repository for monies received as grants in support of this act or moneys
otherwise appropriated or directed to be remitted to this fund as are necessary
to implement this act.� The purpose of the fund shall be to pay the health
benefits plan premium costs for persons eligible for coverage pursuant to this
act.
���� g.��� The Department of
Banking and Insurance shall, in accordance with the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as
necessary to implement this act.
���� 3.���
There
is appropriated the sum of $10,000,000 from the General Fund to the Department
of Banking and Insurance for deposit into the
�Health Care for Child
Care Fund�
to effectuate the provisions of this act.
���� 4.��� This act shall take
effect on the first day of the seventh month following the date of enactment.
STATEMENT
���� This bill establishes the
�Health Care for Child Care Program� to provide State funding for health
benefits plans for employees of child care centers licensed in the State.�
Pursuant to the bill, any employee of a child care center licensed in the State
is eligible for health benefits coverage at the gold level through the New
Jersey Individual Health Coverage Program.� Premiums for the health benefits
plans are to be paid from the Health Care for Child Care Fund also established
under the bill.� The bill appropriates $10 million from the General Fund for
deposit into the Health Care for Child Care Fund to effectuate the provisions
of the bill.
���� Investing in the child care
workforce is essential to the economic stability and well-being of New Jersey's
families and communities.� Child care centers, many of which are women or
minority owned, form a critical component of our local economy and societal
functioning.� Though heavily regulated, child care providers often operate
without any supplemental public assistance.� These providers enable parents to
work while supporting the early development of children.� Despite the
indispensable role they play, these providers, who are predominantly women of
color and immigrants, are often among the lowest-paid workers in the State,
with limited access to health insurance, retirement plans, and other essential
employment benefits.
���� Underinvestment in the child
care infrastructure threatens the sustainability of an industry that is vital
to the State�s economic growth.� Without sufficient public support, these small
businesses struggle to maintain operations, directly impacting parents' ability
to participate in the workforce and the availability of quality early education
for children.
���� By increasing public
investment in the child care sector, the State can stabilize the critical child
care workforce, reduce economic inequality, and promote long-term prosperity.�
A robust child care system not only benefits children and working families, but
also strengthens the broader economy, making the investment in child care a
crucial step toward economic equity and sustainable growth for the State.