HB254 • 2026

Child Care Subsidy Program; income-based eligibility for assistance.

<p class=ldtitle>A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 14.1 of Title 22.1 a section numbered 22.1-289.08:3, relating to early childhood care and education; Child Care Subsidy Program; income-based eligibility for assistance; development and implementation of phased reduction model.</p>

Children Education

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Glass
Last action: 2026-02-18
Official status: Failed
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on the exact percentage reductions or specific adjustments for families with special circumstances, leaving these points as limits and unknowns.

Child Care Subsidy Program Income-Based Eligibility

This bill requires the Department of Education to create a phased reduction model for child care subsidies, ensuring families don't lose assistance suddenly when their income increases.

What This Bill Does

Requires the Department of Education to develop and implement a phased reduction model for the Child Care Subsidy Program.
Ensures that as family income rises, the amount of child care subsidy they receive decreases gradually instead of stopping abruptly.
Establishes incremental income tiers where each tier corresponds to a proportional decrease in assistance.
Requires the Board of Education to create regulations and submit necessary changes to federal plans for implementing this model.

Who It Names or Affects

Families receiving child care subsidies through the Child Care Subsidy Program.
The Department of Education and the Board of Education.

Terms To Know

Phased reduction model: A system where child care assistance decreases gradually as a family's income increases, rather than stopping suddenly.
Income tiers: Different levels of income that determine how much subsidy a family receives under the phased reduction model.

Limits and Unknowns

The bill does not specify exact percentages for reducing assistance per income tier.
It is unclear what specific adjustments will be made for families with special circumstances.

Bill History

2026-02-18 House
Left in Committee Appropriations
2026-01-28 Elementary & Secondary Education
Assigned HAPP sub: Elementary & Secondary Education
2026-01-28 Education
Reported from Education and referred to Appropriations (20-Y 1-N)
2026-01-27 House
Fiscal Impact Statement from Department of Planning and Budget (HB254)
2026-01-21 Early Childhood and Innovation
Subcommittee recommends reporting and referring to Appropriations (10-Y 0-N)
2026-01-20 Early Childhood and Innovation
Assigned HED sub: Early Childhood and Innovation
2026-01-08 House
Prefiled and ordered printed; Offered 01-14-2026 26103195D
2026-01-08 Education
Referred to Committee on Education

Official Summary Text

Early childhood care and education; Child Care Subsidy Program; income-based eligibility for assistance; development and implementation of phased reduction model.
Requires the Department of Education (the Department) to develop and implement a phased reduction model for the Child Care Subsidy Program (the Program) that provides for an assistance phase-out period during which the assistance for which a given family is eligible is incrementally reduced in proportion to the increase in such family's income for the purpose of ensuring that no family receiving child care assistance under the Program experiences a sudden loss in eligibility for assistance as a result of an increase in family income. The bill requires the phased reduction model developed and implemented by the Department to consist of incremental income tiers, with each increase in income tier corresponding to a proportional reduction in the percentage of assistance for which a given family is eligible under the Program. The bill directs the Board of Education to (i) promulgate regulations for the development and implementation of the phased reduction model in accordance with the provisions of the bill and (ii) submit to the U.S. Department of Health and Human Services any amendments to the current Child Care and Development Fund Plan for Virginia as are necessary to implement the provisions of the bill.

Current Bill Text

Read the full stored bill text

A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 14.1 of Title 22.1 a section numbered
22.1-289.08:3
, relating to early childhood care and education; Child Care Subsidy Program; income-based eligibility for assistance; development and implementation of phased reduction model.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 1 of Chapter 14.1 of Title 22.1 a section numbered
22.1-289.08:3
as follows:

§
22.1-289.08:3
. Child Care Subsidy Program;
income-based
eligibility;
development and implementation of
phased reduction model
.

A.
To ensure that no family receiving assistance under the Child Care Subsidy Program
(the Program)
experiences a sudden loss
of
such assistance as a result of an increase in such family's maximum gross countable income amount beyond the initial eligibility limit,
the Department shall develop and implement a phased reduction model
providing for

an assistance phase-out period for families that experience an income increase during which
a
family maintains eligibility for assistance but
the
assistance

for which the family is eligible
is incrementally
reduc
ed in
proportion to
the increase in income.

B
.
The phased reduction model developed and implemented pursuant to subsection
A shall consist of incremental income tier
s
,
with each
increase in
income tier corresponding
to

a proportional
reduction in assistance for which a given family is eligible
under the Program
. The Department shall determine the
number of incremental income tiers of which such phased reduction model shall consist and the
percentage by which assistance shall be reduced per increase in income tier, provided that
(i)
such percentage shall not exceed a 10 percent reduction per increase in income tier,
determined
based on
a
family's income
as a percentage of the federal poverty level or the state median income as determined by the Department
and (ii) the first income tier for which a proportional reduction in assistance shall be applied
under such phased reduction model
shall correspond to
the gross countable
family
income

that exceeds
by $1
the
maximum income
eligibility
limit established by the Department in the current Child Care and Development Fund Plan for Virginia approved by the U.S. Department of Health and Human Services.

C. The Board shall
promulgate

regulations for the development and implementation of the phased reduction model in accordance with the provisions of this section.
In promulgating such regulations, the Board shall (i) ensure that the percentage by which assistance is reduced per income tier is incremental
such
that no family experiences a sudden loss in eligibility for assistance under the
Program as a result of an increase in income; (ii)
provide for an appeal of any incremental reduction in assistance for which a family is eligible under the phased reduction model
; and
(iii) include provisions providing certain adjustments in the phased reduction model for families with special circumstances, such as
families that include
a family member with a disability and families experiencing unexpected financial hardship.

2. That the Department of Education shall submit to the U.S. Department of Health and Human Services any amendments to the current Child Care and Development Fund Plan for Virginia, required pursuant to the Child Care and Development Block Grant Act (42 U.S.C. § 9857 et seq.), as are necessary to implement the provisions of this act.