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Senate advances bill to reimburse child-care subsidy by enrollment rather than attendance
Summary
The Legislature advanced LB13, which would require Nebraska to reimburse child-care providers based on a child's enrollment (monthly/authorized hours) instead of daily attendance, aligning state practice with a federal mandate. Committee amendments and sponsor amendments were adopted; the bill cleared general file following a recorded floor vote.
Senator Mikaela Kavanaugh, sponsor of LB13, said the bill would shift Nebraska’s child-care subsidy reimbursement from an attendance-based model to an enrollment-based model — meaning providers would be paid for an enrolled slot even when a subsidized child is absent, mirroring private-pay practice and complying with a federal requirement tied to the Child Care and Development Block Grant (CCDBG).
Kavanaugh and several senators said the federal government has signaled that states must adopt the change and that Nebraska currently operates under a waiver. She and HHS committee witnesses argued the enrollment model improves cash flow and predictability for child-care businesses, encouraging them to accept subsidy children and helping parents maintain employment. Supporters said the change affects about 9,000 families and that implementation requires a federal state-plan amendment and state budgeting steps.
Floor action: The body adopted a sponsor amendment (AM516) changing an implementation date from July 2026 to August 2026 (vote recorded on the floor as 35 ayes, 11 nays on AM516). The committee amendment AM249 (which set a deadline and addressed technical filing language) was adopted on the floor (40 ayes, 5 nays). The sponsor withdrew a duplicate amendment (AM34). After roll-call and a brief house-under-call procedure, the Legislature advanced LB13 to E & R initial on a recorded vote (25 ayes, 14 nays).
Key points from debate: Supporters including senators DeBoer, Spivey, Frederickson and others described child care as a workforce issue, arguing predictable subsidy payments help small child-care businesses survive and expand slots. Opponents and cautious senators — including Senator Harden and Senator Hansen — urged fiscal prudence because the policy will increase state costs in future budgets; Kavanaugh and others said DHHS expects implementation costs and that additional funding would be requested in subsequent budget cycles and that codifying the change creates certainty for providers.
Implementation and fiscal context: The clerk and sponsor noted the statutory change would require Department of Health and Human Services to file a state plan amendment; DHHS has requested an August 2026 implementation date and told the sponsor it would absorb some implementation costs in its mainline budget with a later deficit request for ongoing funds estimated in the fiscal note (floor discussion referenced approximately $17,762,000 as a future annual cost estimate). Supporters emphasized the switch is mandated at the federal level and that the bill gives time for appropriations planning.
Next steps: LB13 advances to E & R initial; appropriation and budget committees will consider funding choices during the budget process. Sponsors said they would be open to technical amendments between general and select if senators seek more reporting or attendance-tracking parameters.
