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H 7462Children

Human Services - Child Care Assistance Program Copayments

This bill limits the amount families must pay for state-subsidized child care based on their income level.

Held for study
Population
Affected
15
Email Legislator
Introduced Jan 30, 2026Committee House Finance

Plain-English Summary

This legislation modifies the Rhode Island Child Care Assistance Program (CCAP) by establishing a sliding fee scale for family copayments. It mandates that copayments cannot exceed seven percent of a family's annual income. The bill eliminates copayments for families earning at or below 125% of the federal poverty level and creates tiered percentage caps for higher income brackets up to 300% of the poverty level. Additionally, it authorizes the Department of Human Services to waive copayments for specific vulnerable groups, including families experiencing homelessness and those with children in foster care.

For younger readers

This law changes the rules for how much parents have to pay for child care when the government helps them. It creates a chart based on how much money the family makes. Families who don't have a lot of money won't have to pay anything at all. Other families will pay a small part of their money, but never more than seven percent of what they earn in a year. It also says that families without a home or kids living with foster parents might not have to pay anything.

Who & Where It Applies

Impacted groups
Low-income families, working parents, child care providers, Department of Human Services, foster families
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Eliminates financial barriers for the most economically disadvantaged families by setting copayments to 0% for those at or below 125% of the federal poverty level.
  • Codifies a cap on childcare expenses at 7% of income, protecting working families from excessive costs that often trap them in poverty.
  • Explicitly authorizes waivers for highly vulnerable populations, including homeless families and children in foster care, ensuring immediate access to care without bureaucratic financial hurdles.
  • Maintains a means-tested system rather than establishing universal free childcare, leaving some working-class families with costs that may still feel burdensome.
  • Focuses solely on the cost to parents without addressing wage increases or union rights for the childcare workers providing the services.
  • The 7% cap, while an improvement, may still be too high for families living in areas with high housing costs, as it does not account for total cost of living expenses.
For Conservatives
  • Maintains a tiered payment structure for families above the poverty line, reinforcing the principle of personal responsibility rather than providing a universal handout.
  • Aligns state statutes with federal regulations, ensuring the state remains eligible for federal block grants and avoids potential penalties.
  • Supports workforce participation by ensuring childcare costs do not exceed the income gained by working, thereby keeping families off total government dependency.
  • Expands the welfare state by completely eliminating copayments for a specific segment of the population, effectively making the service free for them at taxpayer expense.
  • Reduces the revenue generated by the program, likely requiring increased state appropriations or taxpayer funding to cover the difference in operating costs.
  • Grants the Department of Human Services regulatory authority to create additional copayment categories and waivers, potentially expanding bureaucracy without legislative vote.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 44 additions

SECTION 1. Findings of fact. The general assembly hereby finds as follows:

(1) Access to affordable, high-quality child care is essential to the economic stability of Rhode Island’s working families and the health and development of young children.

(2) The federal Child Care and Development Block Grant Act (“CCDBG”) requires states to establish sliding fee scales for family copayments that account for family income and size and that ensure copayments are affordable and not a barrier to accessing care.

(3) Federal regulations finalized in 2024 prohibit family copayments in excess of seven percent (7%) of family income and encourage states to eliminate or significantly reduce copayments for families with low incomes, particularly those under one hundred fifty percent (150%) of the federal poverty level.

(4) Rhode Island law currently requires a sliding fee scale for child care assistance and, pursuant to the Child Care and Development Fund (CCDF) final rule, caps family copayments are capped at seven percent (7%) of family income.

(5) Data from December 2024 demonstrate that a majority of families receiving assistance under the Child Care Assistance Program are not charged a copayment, and that modest statutory changes could further reduce financial barriers while maintaining program sustainability.

(6) It is therefore the intent of the General Assembly to codify an affordable sliding fee scale in statute, expand eligibility for zero copayments, and reduce copayment amounts for working families, consistent with federal law and best practices.

SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby amended by adding thereto the following chapter: 40-6.7-1. Child care assistance program -- Family copayments.

(a) The department of human services ("DHS"), as the lead agency for the child care assistance program ("CCAP"), shall establish and administer family copayments pursuant to a sliding fee scale set forth in this section.

(b) Family copayments under the CCAP shall:

(1) Be based on family income and family size;

(2) Not be based on the cost of care or the amount of subsidy payment;

(3) Be affordable and not constitute a barrier to participation; and

(4) Not exceed seven percent (7%) of a family's annual income, regardless of the number of children in care.

(c) Except as otherwise provided in subsection (d) of this section, family copayments shall be assessed according to the following sliding fee scale, expressed as a percentage of annual family income: Table 1: Child Care Assistance Program Family Copayment Schedule Income Level as % of Copayment as % Federal Poverty Level (“FPL”) of Family Income At or below 125% FPL 0% Above 125% FPL and at or below 150% FPL 2% Above 150% FPL and at or below 200% FPL 4% Above 200% FPL and at or below 300% FPL 6%

(d) DHS may waive family copayments, in whole or in part, for families who meet one or more of the following criteria, consistent with federal law and regulations:

(1) Families with children in foster care or kinship care, or otherwise receiving or in need of protective services;

(2) Families experiencing homelessness;

(3) Families with children who have a disability, as defined by federal regulation;

(4) Families enrolled in Head Start or Early Head Start programs; or

(5) Any other category authorized under federal Child Care and Development Fund rules.

(e) DHS is authorized to establish by regulation additional categories of copayments for families with incomes above three hundred percent (300%) of the federal poverty level; provided that, no copayment exceeds the cap set forth in subsection (b)(4) of this section.

(f) DHS shall periodically review the sliding fee scale to ensure compliance with federal requirements and the affordability of child care for Rhode Island families, and shall report any recommended statutory changes to the general assembly. 40-6.7-2. Severability. If any provision of this chapter or its application is held invalid, such invalidity shall not affect the other provisions or applications of the chapter which can be given effect without the invalid provision or application.

SECTION 3. This act shall take effect upon passage.