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2025 Session

Budget Amendments - HB1600 (Conference Report)

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Employee Child Care Assistance Pilot Program

Item 125.10 #7c

Item 125.10 #7c

First Year - FY2025 Second Year - FY2026
Education: Elementary and Secondary
Direct Aid to Public Education FY2025 $25,000,000 FY2026 $0 GF

Language
Page 201, line 28, strike "$560,180,474" and insert "$585,180,474".

Page 201, line 36, after "support" strike the remainder of the line.

Page 201, line 37, strike "Delivery Program, and Virginia Preschool Initiative" and insert:

"Early Childhood Care and Education Programs"

Page 202, after line 12, insert:

"Employee Child Care Assistance Pilot Program $25,000,000 $0".

Page 209, after line 45, insert:

"J. The Employee Child Care Assistance Pilot Program (the Pilot Program) is established for the purpose of providing matching funds in order to incentivize employers to contribute to the child care costs of their employees. The Pilot Program shall be administered by the Virginia Early Childhood Foundation (the Foundation). The Foundation shall establish such guidelines and procedures as it deems necessary for the administration of the Pilot Program, subject to the following conditions and requirements:

1. To participate in the Pilot Program, an employer shall agree to make child care contributions to an eligible mixed delivery provider on behalf of the employee and shall provide any other information deemed necessary by the Foundation. The Foundation shall issue a state match directly to an eligible mixed delivery provider, or to a third-party administrator, that has entered into an agreement with a participating employer.

2. The Foundation shall, in consultation with the Early Childhood Care and Education Commission, establish guidelines for the pilot program.  Such guidelines shall: (i) limit eligibility for state contributions for slots serving households with income at or below 85 percent of the state median income; (ii) establish a schedule of expected family copayments not to exceed 5 percent of household income for households with income at or below 300 percent of the federal poverty level and between 5 percent and 10 percent of family income for households with incomes above 300 percent of the federal poverty level and below 85 percent of the state median income; and (iii) provide that the state match does not exceed 40 percent of the cost of the slot remaining after application of family copayments.

3. Pilot Program funds shall be provided on a first-come, first-served basis. The Foundation is encouraged to prioritize participation of small businesses and serving a variety of employers and employees representing each Ready Region.

4. The Foundation may combine the Pilot Program with or incorporate the Pilot Program into a program or initiative related to the Mixed Delivery Program provided that such a combination allows for the maximization of funds used for the purposes in this item.

5. The Foundation shall provide a report to the General Assembly by September 1 each year on the effectiveness and impact of the program.

6. Any balances appropriated for the Pilot Program that are unexpended on June 30, 2025, June 30, 2026 and June 30, 2027, shall not revert to the general fund but shall be reappropriated for expenditure for the same purpose until June 30, 2028.

7. For the purpose of the Pilot Program, "Eligible mixed delivery provider" means a child day center or family day home that has been selected or identified to deliver mixed delivery services through a local agreement with the relevant regional entity established pursuant to subsection D of § 22.1-289.05 of the Code of Virginia, "Employer" means an employer with at least one employee who works in the Commonwealth in each of 20 or more calendar weeks in the current or preceding calendar year, and "Small business" means an employer with fewer than 50 employees."



Explanation

(This amendment provides $25.0 million from the general fund in fiscal year 2025 to establish and operate the Employee Child Care Assistance Pilot Program. Through this program the state and participating employers and employees share in the cost of child care services. Eligibility to receive a state contribution through the program is limited to households with income below 85 percent of the state median income. Family copayments are limited to 5-10 percent of income, with the state contributing 40 percent of the remaining cost, with employers or others contributing the remainder of the cost.)