Subcommittee backs childcare subsidy reform and access‑calculation substitute to ease the benefits cliff
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Summary
Sen. Locke’s SB 20 (phased reduction of childcare subsidy) and SB 134 (childcare access calculation substitute) were recommended by the subcommittee after broad support from providers, nonprofits and business groups; supporters said the measures increase transparency, stabilize funding and help families avoid the benefits cliff.
Sen. Locke presented two related measures aimed at stabilizing Virginia’s early‑childhood system and reducing the "benefits cliff" that can penalize families for small income gains. SB 20 would adopt a phased reduction model for the childcare subsidy so families do not lose benefits abruptly as wages rise; SB 134 would create a childcare access calculation to provide clearer, benchmarked cost data for policymakers rather than a prescriptive funding formula.
Providers and advocates testified strongly in favor. Thaler (Taylor) McCormick, CEO of 4Kids, said program alumni had turned down raises or promotions because they would have lost benefits: "We met with them and said, tell us what you need to get ahead?... they said we needed to address the benefits cliff." Childcare providers described long wait lists and difficulty retaining educators because reimbursement rates have not kept up with costs. Jennifer Parrish of Peak Childhood Center said SB 134 "will ultimately create a more stable operating environment" and argued for periodic re‑benchmarking of per‑child costs.
Business groups and chambers supported the measures as workforce and economic development priorities; committee members noted an estimated fiscal impact for SB 4 (separate school meals bill) in the $29 million range during related discussion. Both SB 20 and the SB 134 substitute were recommended for reporting to the full committee by voice votes (SB 20: 5–0; SB 134 substitute: 5–0).
