Committee hears bill to shift Nebraska childcare subsidy from attendance to enrollment; debate centers on costs and timing

Sen. Machaela Cavanaugh told the Health and Human Services Committee that LB 13 would change Nebraska’s childcare subsidy payment method from attendance‑based billing to enrollment‑based payments, matching private billing practice and federal guidance in the Child Care and Development Fund (CCDF) final rule.

Cavanaugh told the committee that Nebraska’s childcare sector faces widespread shortages—citing a 2023 survey reporting that 84 of the state’s 93 counties lack sufficient licensed providers—and that enrollment payments give providers predictable monthly revenue needed to cover fixed costs such as staff, facilities and supplies. She said Nebraska currently reimburses subsidy providers at 75% of market rate and that attendance‑only billing reduces revenue when children are absent for illness or other…