The White House says families are expected to save about $200 a month on average. The new rule is effective April 30.
For more than a decade, Erin Farias has watched the low-income families who send children to the day cares she runs navigate America’s broken child care system. Many of those parents had government assistance for school tuition, but half the time, Farias couldn’t count on them to make their co-payments. They were still too high.
That’ll make a big difference in places like New Hampshire, West Virginia and Ohio, where those costs are eating upof families’ budgets. Though the new rule doesn’t apply to the thousands of other families whose incomes are too high for a subsidy but are also paying exorbitant costs, it does address the acute need among the lowest-income families, most of whom areis effective April 30. Some states will be able to make the changes quickly; others will need approval from their legislatures.
“The sheer existence of a co-pay is, for some families, a barrier,” Hedgepeth said. “Even if it’s only 100,000 families who will see a decrease, that’s still 100,000 families for whom scraping together that co-pay may have been challenging.” The rule change will require states to use the same payment structure for both higher-income families and those on subsidies. About 140,000 child care centers and in-home day care providers are expected to benefit, according to the White House.
For her business, the new rule “is going to change everything,” she said. She’ll be able to better serve more low-income families, and the more consistent funding could also help her improve pay for her staff. Gregory has a small co-pay — about 1 percent of her family income — but she said she’s heartened to see change coming for families.How much states will do based on the new rule will come down to funding, however. The rule doesn’t come with any additional funds, which means existing money will have to be shuffled from other parts of the child care system.have done. But making the case that child care is a priority among other competing needs has been an ongoing challenge.
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