The House Education Committee heard presentations May 9 on House Bill 190, a measure from the governor’s office that would repeal and replace portions of last year’s omnibus bill if a court voids those changes. The bill covers two main areas: expanding the education tax credit cap and making statutory changes to childcare subsidy and grant programs.

Department of Revenue legislative liaison Amy Bushnell told the committee that Senate Bill 189 became law as chapter 15, SLA 24 on Oct. 9, 2024, but is the subject of a lawsuit challenging the bill’s single-subject compliance. "Because of that, the governor has put forward this bill," Bushnell said, describing HB 190 as a way to replicate certain policy changes if SB 189 is invalidated by the court.

HB 190 would expand allowable education tax-credit uses to include employer-operated childcare facilities and payments to employees to offset dependent-care costs, and would raise the annual cap on the education tax credit from the prior statutory level to $10 million. Bushnell summarized the cap history: last year statutory changes raised the credit from $1 million to $3 million; HB 190 would raise it further to $10 million.

Leah Van Kirk, health care policy adviser for the Department of Health, outlined statutory changes to the child care assistance program and the child care grant program. Those changes would allow additional rate-setting methods, permit certain income-eligibility waivers consistent with federal rules, require grant-funded providers to prioritize children enrolled in the child care assistance program, and enable grants targeted to high-quality facilities. Van Kirk said the bill retains technical updates changing "daycare" language to "childcare" and revises definitions for child care facilities.

Committee members asked about elements of SB 189 that were left out of HB 190. Van Kirk confirmed that some items with associated fiscal notes — for example, expanding family income eligibility to 105% of state median household income and creating an employer-incentive program for on-site childcare — were included in the governor's proposed FY 2026 budget rather than embedded in this bill. She said those items remain subject to the budget process and could proceed if funded there.

The testimony also noted a federal administrative change made the prior statutory cap on family contributions (co-pay) unnecessary. Van Kirk said recent federal rules require a cap and that statutory change is not needed for compliance.

The committee took a procedural action at the end of the hearing. Chair Story said he would "hold HB 190 over and set an amendment deadline for Sunday, May 12 at 3 p.m.," leaving the bill under consideration while members review fiscal notes and budget dependencies.

Recorded discussion distinguished statutory language included in HB 190 from implementation actions that would require appropriations or regulatory steps. Staff on hand for fiscal questions included Brandon Spanos of the Department of Revenue and legal counsel Sean Mills, and committee members reserved additional fiscal and budget questions for follow-up as part of the amendment process.

HB 190 links statutory changes to larger budget choices and, according to testifiers, to ongoing federal and regulatory guidance; the committee will revisit the bill after receiving requested fiscal clarifications and any proposed amendments.