An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in public assistance, further providing for copayments for subsidized child care; and making a repeal.

PRIOR PRINTER'S NO. 1227 PRINTER'S NO. 1940
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1108
Session of
2025
INTRODUCED BY E. NELSON, GIRAL, VENKAT, M. MACKENZIE, KHAN,
HILL-EVANS, BRENNAN, BURGOS, HANBIDGE, DOUGHERTY, K.HARRIS,
STENDER, D. WILLIAMS, FLEMING, COOK, BENNINGHOFF, FLOOD,
SCHLEGEL, DAVANZO, B. MILLER, CIRESI, WARREN, BOYD, CEPEDA-
FREYTIZ AND HEFFLEY, APRIL 3, 2025
AS REPORTED FROM COMMITTEE ON HUMAN SERVICES, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 17, 2025
AN ACT
Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
act to consolidate, editorially revise, and codify the public
welfare laws of the Commonwealth," in public assistance,
further providing for copayments for subsidized child care;
and making a repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 408.3 heading, (c), (e) and (f) of the
act of June 13, 1967 (P.L.31, No.21), known as the Human
Services Code, are amended to read:
Section 408.3. [Copayments for] Subsidized Child Care.--* *
*
(c) In establishing the copayment amounts pursuant to this
section, all of the following shall apply:
(1) Copayments shall be on a sliding scale based on a
percentage of the family's annual income taking into account
Federal poverty income guidelines and considerations to support
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economic self-sufficiency. Copayments shall be updated annually.
(2) At the department's discretion, copayments may be
imposed:
(i) for each child enrolled in subsidized child care;
(ii) based upon family size; or
(iii) in accordance with both subparagraphs (i) and (ii).
(3) Copayment amounts shall be [a minimum of five dollars
($5) per week and shall increase in incremental amounts] IN
ACCORDANCE WITH FEDERAL AND STATE LAW, based on a percentage of
the family's annual income AND ROUNDED TO THE NEAREST WHOLE
DOLLAR, as determined by the department. THE MINIMUM COPAYMENT
AMOUNTS SPECIFIED UNDER PARAGRAPH (4.1) SHALL NOT APPLY TO
SPECIAL POPULATIONS AS DETERMINED BY THE DEPARTMENT IN
ACCORDANCE WITH THE COMMONWEALTH STATE PLAN.
[(3.1) At initial application, the family's annual income
may not exceed two hundred percent of the Federal poverty income
guidelines.
(3.2) After an initial determination or redetermination of
eligibility, a child shall continue to be enrolled in subsidized
child care for twelve months regardless of either of the
following:
(i) A temporary change in the parent or caretaker's status
as working or attending a job training or educational program.
(ii) An increase in the family's annual income, if the
income does not exceed eighty-five percent of the State median
income for a family of the same size.]
(4) [Subject to subsection (e), a] A family's annual
copayment under either paragraph (1) or (2) shall not exceed:
(i) eight percent of the family's annual income if the
family's annual income is one hundred percent of the Federal
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poverty income guideline or less;
(ii) eleven percent of the family's annual income if the
family's annual income exceeds one hundred percent of the
Federal poverty income guideline, but is not more than two
hundred fifty percent of the Federal poverty income guideline;
(iii) thirteen percent of the family's annual income if the
family's annual income exceeds two hundred fifty percent of the
Federal poverty income guideline, but is not more than two
hundred seventy-five percent of the Federal poverty income
guideline; or
(iv) beginning after July 1, 2017, fifteen percent of the
family's annual income if the family's annual income exceeds two
hundred seventy-five percent of the Federal poverty income
guideline, but is not more than three hundred percent of the
Federal poverty income guideline or eighty-five percent of the
State median income, whichever is lower.]
(4.1) A FAMILY'S ANNUAL COPAYMENT SHALL BE:
(I) NOT LESS THAN THREE PERCENT AND NOT MORE THAN SEVEN
PERCENT OF THE FAMILY'S ANNUAL INCOME, IF THE FAMILY'S INCOME IS
AT OR BELOW TWO HUNDRED THIRTY-FIVE PERCENT OF THE FEDERAL
POVERTY INCOME GUIDELINES; OR
(II) NOT LESS THAN SEVEN PERCENT AND NOT MORE THAN TWELVE
PERCENT OF THE FAMILY'S ANNUAL INCOME, IF THE FAMILY'S INCOME
EXCEEDS TWO HUNDRED THIRTY-FIVE PERCENT OF THE FEDERAL POVERTY
INCOME GUIDELINES BUT IS NOT MORE THAN THREE HUNDRED PERCENT OF
THE FEDERAL POVERTY INCOME GUIDELINES.
(5) Notwithstanding this subsection, beginning with State
fiscal year 2012-2013, the department may adjust the annual
copayment percentages specified in this subsection by
promulgation of final-omitted regulations under section 204 of
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the act of July 31, 1968 (P.L.769, No.240), referred to as the
"Commonwealth Documents Law."
[(6) Subject to subsection (e), at a redetermination, after
June 30, 2017, a family that exceeds the minimum work
requirements as a result of each parent or caretaker or, in the
case of a single-parent household, as a result of the sole
parent or caretaker, by working additional wage-earning hours
shall have a reduced copayment, not to be less than that which
is set forth under paragraph (3). This paragraph shall apply
only to a family that, after mutually qualifying for and
receiving subsidized child care and being current on the
required copayments as set forth in this subsection, increases
its average work week after the effective date of this paragraph
and has increased the family's annual income as a result of
working additional wage-earning hours. The copayment deduction
shall be applied as follows:
(i) For an average work week of at least twenty-five wage-
earning hours per parent or caretaker, a three-quarters of one
percent deduction from the amount set forth under this
subsection.
(ii) For an average work week of at least thirty wage-
earning hours per parent or caretaker, a one and one-half
percent deduction from the amount set forth under this
subsection.
(iii) For an average work week of at least thirty-five wage-
earning hours per parent or caretaker, a two and one-quarter
percent deduction from the amount set forth under this
subsection.
(iv) For an average work week of at least forty wage-earning
hours per parent or caretaker, a three percent deduction from
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the amount set forth under this subsection.
(7) At its redetermination of eligibility, a parent or
caretaker shall provide documentation of its average work week
hours to receive the child care copayment deduction. The
department shall apply the copayment deduction after receiving
the required documentation.
(8) A family that has previously qualified for a deduction
in the child care copayment shall continue to remain eligible
for the copayment deduction if:
(i) the family's annual income does not exceed three hundred
percent of the Federal poverty income guideline or eighty-five
percent of the State median income, whichever is lower;
(ii) the parent or caretaker has been in compliance with
paragraph (7);
(iii) the parent or caretaker continues to exceed the
minimum work requirements by working additional wage-earning
hours;
(iv) the family's annual income has increased as a result of
working additional wage-earning hours; and
(v) the parent or caretaker is current and remains current
with making its copayment to the child care provider.
(9) The average work week of a family shall be calculated by
reviewing the family's income statements and taking the number
of hours worked per parent over a twelve-month period and
dividing by fifty-two.]
* * *
(e) [To the extent that money is appropriated for the
purpose, the department shall increase eligibility under
subsection (c)(4) for subsidized child care from two hundred
thirty-five percent of the Federal poverty income guideline up
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to three hundred percent of the Federal poverty income guideline
and shall apply a copayment deduction under subsection (c)(6).
The department shall not be required to maintain eligibility
above two hundred thirty-five percent of the Federal poverty
income guideline or apply a copayment deduction unless funding
is appropriated by the General Assembly.
(f) As used in this section, "wage-earning hours" means
hours for which an individual is financially compensated by an
employer. The term does not include hours spent volunteering, in
education or in job training, unless those hours are compensated
as a condition of employment.] The following shall apply to
eligibility for subsidized child care:
(1) At an initial determination, the family's annual income
may not exceed two hundred percent of the Federal poverty income
guidelines.
(2) At a redetermination, the following shall apply:
(i) Except as provided under subparagraph (ii)(A) (II) , the
family's annual income may not exceed two hundred thirty-five
percent of the Federal poverty income guidelines or eighty-five
percent of the State median income for a family of the same
size, whichever is lower.
(ii) As follows:
(A) To the extent that money is appropriated by the General
Assembly for the purpose of this clause , the family's annual
income may not exceed three hundred percent of the Federal
poverty income guidelines or eighty-five percent of the State
median income for a family of the same size, whichever is lower.
(A) A FAMILY MAY QUALIFY FOR SUBSIDIZED CHILD CARE IF THE
FAMILY'S ANNUAL INCOME EXCEEDS TWO HUNDRED THIRTY-FIVE PERCENT
OF THE FEDERAL POVERTY INCOME GUIDELINES BUT DOES NOT EXCEED
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THREE HUNDRED PERCENT OF THE FEDERAL POVERTY INCOME GUIDELINES
OR EIGHTY-FIVE PERCENT OF THE STATE MEDIAN INCOME FOR A FAMILY
OF THE SAME SIZE, WHICHEVER IS LOWER, ONLY TO THE EXTENT THAT
MONEY IS APPROPRIATED BY THE GENERAL ASSEMBLY FOR THIS PURPOSE.
(B) For fiscal year 2023-2024 and each fiscal year
thereafter, no less than twenty-five million dollars
($25,000,000) from money appropriated to the department for
child-care services shall be used for the purposes specified
under clause (A).
(3) For twelve months after an initial determination under
paragraph (1) or a redetermination of eligibility under
paragraph (2), a child shall remain eligible for subsidized
child care regardless of either of the following:
(i) A temporary change in the parent or caretaker's status
as working or attending a job training or educational program.
(ii) An increase in the family's annual income, if the
income does not exceed eighty-five percent of the State median
income for a family of the same size.
Section 2. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the amendment of
section 408.3 heading, (c), (e) and (f) of the act.
(2) Section 1729-E(a)(8) of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is repealed.
Section 3. This act shall take effect in 60 days
IMMEDIATELY.
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