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LB 339

Require the Department of Health and Human Services to provide a report regarding the federal Child Care Subsidy program

109th Legislature (2025-2026) Introduced by Bob Hallstrom

Requires DHHS to publish annually a provider-specific summary of Child Care Subsidy reimbursements, with monthly paid units by provider, improving transparency and oversight.

Title printed. Carryover bill
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WeVote Research Nonpartisan
Bill Summary · LB 339

Summary of Nebraska LB339 (2025)

Purpose and Intent

  • LB339 would require the Department of Health and Human Services (DHHS) to provide an annual, provider-specific summary report on claims reimbursed under the federal Child Care Subsidy program.
  • The bill focuses on transparency and accountability regarding how subsidies are paid to licensed child care providers.

Key Provisions

  • Amendments to Section 68-1206:

    • DHHS shall administer the state’s social services program and participate in the federal Child Care Subsidy program.
    • A licensed child care provider seeking to participate in the federal Child Care Subsidy program must meet criminal history background check requirements under the Child Care Licensing Act.
    • The bill contains detailed provisions on ongoing eligibility, transitional aid, and income-based eligibility tied to federal poverty level percentages (as adjusted in prior LB485 changes in 2021). Notably:
    • Ongoing eligibility includes a 10% disregard of gross earned income after 12 months of participation and at redeterminations.
    • Transitional child care assistance is available for families whose income exceeds eligibility thresholds, continuing for a defined transitional period or until income reaches certain state or federal thresholds.
    • There are stipulations about how transitional assistance is calculated, shared cost structures, and exceptions when a household member is a licensed caregiver.
    • Certain provisions (relating to caregiver-child matching and alternative program enrollment) become operative on July 1, 2025, with DHHS to promulgate corresponding rules.
    • Funding provisions specify that, from July 1, 2021 through September 30, 2026, federal Child Care and Development Block Grant (CCDBG) funds are to be used to cover state costs resulting from income eligibility changes; General Funds are not to be used for those state costs, except for administration.
    • DHHS may collaborate with a private nonprofit organization with early childhood expertise to evaluate income eligibility changes, with a mandated completion date of July 1, 2024.

  • New Data Reporting Requirement (Section 2(d) / (4) in the bill):

    • DHHS must provide, no later than February of each year, a summary report for every licensed child care provider reimbursed through the federal Child Care Subsidy program in the previous calendar year.
    • The report must include: the number of paid day units by month for children younger than six, and for children six years of age and older, and the number of paid partial day units by month for younger children (and other provider-specific metrics as described in the bill).

Who Is Affected

  • Licensed child care providers participating in or seeking to participate in the federal Child Care Subsidy program.
  • Families receiving child care subsidies and the broader state administration of child care subsidies.
  • DHHS, which would be the agency compiling and reporting the detailed annual subsidy data.
  • The Nebraska legislature and Health and Human Services Committee, which would receive the annual evaluations and data reporting.

Timeline and Procedural Notes

  • Introduced: January 16, 2025.
  • Committee: Health and Human Services.
  • Hearing: February 6, 2025 (noted in the introducer’s statement and hearing notice).
  • Reporting deadline: Annual report due by February 1 (based on the bill’s language in the amended statute; the hearing notice references a February timing).
  • Operative dates:
    • Certain caregiver-eligibility provisions become operative July 1, 2025.
    • Other program provisions refer to dates tied to July 1, 2021 through September 30, 2026 funding periods and ongoing eligibility changes from LB485 (2021).

Potential Impact

  • Enhanced transparency: Providers and policymakers would gain annual, provider-specific data on subsidy reimbursements, aiding oversight and program evaluation.
  • Administrative obligations: DHHS would incur ongoing reporting responsibilities, including data collection and dissemination.
  • Policy alignment: The bill ties into preexisting federal and state income-eligibility adjustments for child care subsidies and transitional supports, potentially affecting eligible periods, co-payments, and funding flows within the state’s CCDF framework.

Notes: The document excerpt appears partially truncated in certain sections describing the exact contents of the report. The summary reflects the core elements and stated requirements as written.

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

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