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LD 561

An Act To Ensure Subsidy Reimbursements For Certain Child Care Providers

132nd Legislature (2025-2026) Introduced by Joe Baldacci and 4 co-sponsors

Switch CCAP reimbursements from attendance to enrollment for subsidies not fully funded by federal grants, with General Fund support to DHHS to stabilize provider payments.

Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)
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Bill Summary · LD 561

Summary of LD 561: An Act To Ensure Subsidy Reimbursements For Certain Child Care Providers

Purpose and Intent

LD 561 seeks to ensure that child care providers receive subsidy reimbursements under the Maine Child Care Affordability Program (CCAP) based on enrollment rather than attendance, for children whose subsidy payments are not covered by Federal grant funding. The bill is intended to stabilize funding for providers and improve predictability of subsidy reimbursements.

Sponsor and Committee
- Sponsor: Sen. Baldacci (Penobscot)
- Committee: Health and Human Services
- Prime objective: Guarantee subsidy reimbursements to qualifying child care providers when federal funding does not cover the subsidy payments

Key Provisions

  • Switch from attendance-based reimbursements to enrollment-based reimbursements for CCAP subsidies, specifically targeting payments not covered by Federal grants.
  • Provide General Fund appropriations to DHHS to cover the incremental cost of this enrollment-based reimbursement approach.
  • The bill anticipates ongoing reimbursements to certain providers as a funding backstop to ensure subsidy payments reach providers even when federal funding falls short.

Fiscal Impact

Two fiscal notes accompany the bill, reflecting an updated understanding after committee consideration.

  • Original (Document 3, approved 04/11/25)

    • Net Cost to General Fund: $1,825,000 in FY 2025-26; $2,150,000 in FY 2026-27 through FY 2028-29 (each year)
    • Appropriations/Allocations: $1,825,000 in FY 2025-26; $2,150,000 in each subsequent year
    • Description: Reimbursement based on enrollment under CCAP for subsidies not fully covered by federal funds

  • Revised (Document 4, updated 05/23/25, following Committee Amendment)

    • Net Cost to General Fund: $75,000 per year in FY 2025-26 and FY 2026-27; projected to $75,000 in FY 2027-28 and FY 2028-29 (consistent with the amendment)
    • Appropriations/Allocations: $75,000 per year in FY 2025-26 and FY 2026-27
    • Description: Narrower appropriation to reimburse enrollment-based subsidy payments not covered by Federal grant funding, reflecting savings or offsetting factors from the amended text

In sum, the bill (as amended) reduces the anticipated General Fund cost relative to the original estimate and specifies funding to support enrollment-based reimbursements for sub-coverage subsidies.

Who Is Affected

  • Child care providers participating in the Maine CCAP, particularly those receiving subsidies for children whose subsidies are not fully funded by federal grants.
  • The Department of Health and Human Services (DHHS), which administers CCAP and would disburse the reimbursements.
  • Families and children relying on CCAP subsidies, indirectly affected through the stability and predictability of funding.

Timeline and Status

  • Introduced: February 19, 2025
  • Legislative actions culminated in committee amendments and passage through the Senate/House in June 2025.
  • Status: CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
  • Notable procedural milestones:
    • Committee Amendment "A" (S-225) adopted; bill moved through engrossment and concurrence processes in June 2025
    • Referred to the Health and Human Services Committee; reported out as OTP-AM (Ought to Pass as Amended)

Practical Implications

  • Provides financial stability for certain child care providers by guaranteeing enrollment-based subsidy reimbursements when federal funding is insufficient.
  • Clarifies the handling of subsidies not covered by federal sources, ensuring providers are reimbursed for eligible enrollments.
  • Financial impact depends on final legislative action and the enacted appropriation levels in subsequent sessions.

If you want, I can add a brief comparison to the current CCAP funding structure or map which providers would be most affected in practice.

Compiled from official sources — confirm details with the bill’s official record.

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