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Staff brief committee on substitute HB 2689 as advocates warn cuts would harm providers and families
Summary
Committee staff outlined a substitute to HB 2689 that narrows eligibility expansions, reduces future subsidy-rate targets, and changes provider reimbursement rules; child-care advocates and school-district representatives warned the payment changes could harm small providers and Head Start programs.
Jordan Clark, staff to the House Appropriations Committee, briefed members on the proposed substitute to House Bill 2689, explaining that the draft removes previously scheduled income expansions to 75% and 85% of state median income and lowers proposed future subsidy-rate targets from the 80th percentile of market to the 70th percentile beginning July 2027. Clark said, "Beginning 07/01/2026, provider reimbursement will transition from attendance based to enrollment based billing," and described an attendance policy change that would pay a full month only if a child is absent 10 or fewer days and a half month for 11 or more absences, with staggered effective dates for centers…
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