Nebraska lawmakers are considering a bill that would maintain current income qualification levels for families in the state who need child care.
Right now, Nebraska families that earn 185% of the federal poverty level qualify for child-care subsidies, but that income threshold is scheduled to decrease to 130% this fall. That's the difference between a $42,000 annual income and $59,000 for a family of four.
With median annual child-care costs totaling $15,000, said Ken Smith, director of Nebraska Appleseed's economic-justice program, many Nebraska families still need the help that the subsidies provide.
"We know just as part of our economic reality that child care is very, very expensive," he said. "Lower-income, lower-paid families struggle to afford it. We're talking about people that may work in retail or home health, or maybe work construction jobs."
Legislative Bill 304 has cleared two of three legislative hurdles and many lawmakers consider it a priority this session.
Supporters of the measure argue that if parents can't afford child care, they may opt not to take jobs, which could impact the Nebraska workforce. They also contend that Nebraska businesses are already having trouble maintaining a qualified workforce.
Smith said allowing more people to qualify for subsidies would also provide more upward job mobility for Nebraska workers.
"And families that were trying to take jobs that paid a little bit better or were just trying to work their way up could do so without losing their child-care subsidies," he said. "It was confronting what we call the 'cliff effect' in public benefit programs."
The expanded income threshold is set to expire in October if the Legislature opts not to act.