Jones: New child care legislation becomes law

This session, there were several child care bills brought forward in an attempt to increase child care workforce numbers, increase provider rates to maintain existing child care facilities, provide incentives to develop new child care facilities and help hard-working families afford child care. Child care is one of, if the not the most, important factor in getting Iowans back to work after the various business shutdowns during the public health emergency.

The following bills went into effect on July 1:

• Fixing the "Cliff Effect" – House File 302 establishes a state funded off-ramp program from Child Care Assistance (CCA) that will gradually increase cost-sharing from families as they increase their income. This bill removes the ceiling on Iowans' ability to be successful. You often hear about the cliff effect in government programs – where individuals are stuck in welfare dependency and the program is limiting their ability to take a raise or promotion by removing all the supports they receive. This bill addresses the cliff effect in Child Care Assistance. HF 302 passed the House 94-0.

• Child Care Tax Credits – Doubles the income eligibility for the child care tax credit from families making up to $45,000 to $90,000. SF 619 is retroactive to Jan. 1, 2021 and will apply to next year's state taxes. This bill provides relief to 25,000 Iowa families as they pay for day care for their children.

• Child Care Provider Rate Increases – House File 891 increases rates to child care providers accepting Child Care Assistance children by $13.4 million statewide. This bill specifically increases the payment to 50 percent of the most recent market rate survey and will be distributed with $11.8 million to child care centers, $592,000 to Child Development Homes, and $954,000 to nonregistered child care homes with a CCA provider agreement.

In total, this child care package is an attempt to address child care access and affordability throughout the state. We must also keep in mind that childcare must be safe and providers need to be prepared and qualified to care for children. These bills will not resolve our problems as it comes to childcare, but I hope it will make it easier for some families.

Rep. Megan Jones serves Clay, Palo Alto and parts of Dickinson counties in Iowa House District 2.