June 20, 2022
Dear Child Care Providers,
We want to provide you with information regarding upcoming changes to Iowa’s Child Care Assistance program. The below legislation is effective July 1, 2022.
This bill was signed into law on June 13, 2022. Child care providers will now be allowed to collect from a family participating in the Child Care Assistance (CCA) program, an additional amount above their copay up to the difference between the state child care assistance reimbursement rate and the rate the provider would typically charge a private-pay family. If a child care provider chooses to charge families in the CCA program an amount above their co-pay the child care provider and family must agree in writing to these additional payments, prior to providing the child care service. The Child Care Assistance Provider Agreement is being updated to reflect this change.
On June 16, 2021, HF302 was signed into law, establishing a graduated eligibility phase-out program for state child care assistance. The CCA Exit program will serve families once a CCA-eligible family’s income exceeds 225% of the federal poverty level (FPL). Families can remain eligible up to 250% FPL for children needing basic care and 275% FPL for children needing special needs care. Family co-payment for the new program will start at 33% of the cost of care and top out at 60% of the cost of care. Updated administrative rules can be located here.
This law was signed May 24, 2022, and changes Iowa Code to allow the CCA program to serve a family with a permanently disabled parent so child care can be covered while the other parent in the household is working or attending education/training. These families were previously ineligible for CCA.
Please contact DHS, CCA Eligibility at firstname.lastname@example.org or 866-448-4605 with questions. View DHS release.
Child Care Bureau Chief
Iowa Department of Human Services
child care assistance
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