Subcommittee adopts HB 8-49 and HB 13-21 amendments to codify scholarship prioritization and co-payment rules; MSDE reports faster processing

The Childcare Subcommittee of the Ways and Means Committee on March 5, 2026, approved amendments to two linked bills that change how the childcare scholarship program manages wait lists, prioritization and co-payments. Alastair described HB 8-49 as codifying the existing wait list and exemptions (many required by federal law) and adding homeless children to the exempted group. He said the wait-list prioritization will place "applicants with the greatest need" first, followed by applicants employed at participating childcare providers for at least 20 hours per week, children under age 3, and those who have been on the wait list the longest.

On HB 13-21, Alastair summarized application and co-payment changes, saying the bill would require the State Department of Education to notify wait-listed applicants about potential publicly funded prekindergarten or Head Start slots in their county and to provide information about income-based assistance and tax credits. He read the co-payment limits into the record: the co-payment "may not be more than 7% of the individual's household income" and the department may set a minimum co-payment not to exceed $10 per month.

Public commenter Chris Push asked whether waiving presumptive eligibility would require the department to notify families within a specific time frame; Alastair said nothing in the current amendment mandates a notification timeline. Beth Morrow of the Family Network cautioned that replacing a regional median income metric with the federal poverty level (FPL) could exclude many families, noting "For a family of 3, it's around $27,000 and for a family of 4, it's around $33,000," and asked the committee to consider tying co-payments to a percentage of FPL (for example, 300%).

Assistant Superintendent Sarah Neville Morgan of the Maryland State Department of Education told the subcommittee that MSDE's implementation of presumptive eligibility changes had reduced processing by about 73% and gotten median processing to "about 9 days," and that MSDE interprets the bill language in ways that can retain state median income bands while including FPL as one band.

Both bills' amendments were moved and seconded and the chair reported unanimous approval; the chair then moved HB 8-49 and HB 13-21 out of the subcommittee as amended.