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LB 13

Require the Department of Health and Human Services to file a state plan amendment relating to child care

109th Legislature (2025-2026) Introduced by Machaela Cavanaugh and 2 co-sponsors

LB 13 would require DHHS to switch Child Care Subsidy payments from per-attendance to enrollment/authorized hours, aligning billing with providers and stabilizing revenue.

Title printed. Carryover bill
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Bill Summary · LB 13

Summary — LB 13 (2025)

Title: Require the Department of Health and Human Services to file a state plan amendment relating to child care
Primary sponsor: Sen. Machaela Cavanaugh (cosponsors: Conrad, Hallstrom)
Introduced: January 9, 2025 — Status: On Select File (as of March 11, 2025)

Purpose

LB 13 requires the Nebraska Department of Health and Human Services (DHHS) to file a federal state plan amendment to change how providers are reimbursed under the federal Child Care Subsidy program — moving from attendance-based payments to enrollment-based payments (or payment based on authorized hours). The intent is to align subsidy billing with common child care provider practices and to make enrollment-based reimbursement permanent following temporary practice put into effect in April 2020 by executive order.

Key provisions

  • Amends Neb. Rev. Stat. § 68-1206 to:
    • Direct DHHS to participate in the federal Child Care Subsidy program and set payment rules.
    • Require DHHS to file a state plan amendment to pay providers based on a child's enrollment or authorized hours instead of actual attendance.
    • Preserve authority for fixed-rate schedules (statewide or regional), prohibit paying a rate higher than a provider’s private charge, allow tiered rates tied to quality ratings (Step Up to Quality step 3+), and permit special rates for children with special needs.
    • Statewide rate schedules are effective October 1 each year and revised annually.
  • AM249 (Health & Human Services committee amendment) added a deadline; AM516 (adopted) changed the month — final deadline requires DHHS to file the state plan amendment no later than August 1, 2026.
  • The bill repeals the original version of § 68-1206 and replaces it with the amended text.

Who would be affected

  • Child care providers who accept Child Care Subsidy payments — they would be reimbursed on enrollment/authorized hours rather than daily attendance, improving predictability of revenue.
  • Families receiving child care subsidy — potential indirect effects on provider availability and enrollment practices.
  • DHHS — must draft and submit a federal state plan amendment and implement adjusted payment and rate-setting processes.
  • Federal funding and state budget — the bill directs administration of existing federal Child Care and Development Block Grant program participation but does not specify new state General Fund expenditures in the bill text.

Timeline & procedure

  • Introduced Jan 9, 2025; heard Jan 22, 2025; advanced from committee with amendment(s).
  • Committee amendment AM249 and sponsor amendment AM516 adopted; AM516 sets deadline to file the federal state plan amendment no later than August 1, 2026.
  • Status as of March 11, 2025: Placed on Select File.

Considerations highlighted in committee

  • Proponents (including early childhood organizations and the bill’s sponsor) emphasize harmonizing billing practices and stabilizing provider revenue.
  • DHHS testified in opposition during committee hearings (concerns not specified in the summary record).
  • The bill does not include a fiscal note in the materials provided here; implementation may require administrative work by DHHS and coordination with federal requirements.

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

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