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VA SB20

VA SB20
Child Care Subsidy Program; income-based eligibility for assistance.


summary

Introduced
11/17/2025
In Committee
03/04/2026
Crossed Over
02/12/2026
Passed
Dead
03/14/2026

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Early childhood care and education; Child Care Subsidy Program; income-based eligibility for assistance; development and implementation of phased reduction model; report. Requires the Department of Education to develop and implement a phased reduction model for the Child Care Subsidy Program (the Program) that provides for an assistance phase-out period during which the assistance for which a given family is eligible is reduced in proportion to increases in such family's income for the purpose of ensuring that no family receiving child care assistance under the Program experiences a sudden loss in eligibility for assistance as a result of an increase in family income. The bill requires the phased reduction model developed and implemented by the Department to consist of incremental income tiers, with each increase in income tier corresponding to a proportional reduction in the percentage of assistance for which a given family is eligible under the Program. The bill directs the Board of Education to (i) promulgate regulations for the development and implementation of the phased reduction model in accordance with the provisions of the bill and (ii) submit to the U.S. Department of Health and Human Services any amendments to the current Child Care and Development Fund Plan for Virginia as are necessary to implement the provisions of the bill. The bill requires the Department of Education to provide an interim report to the General Assembly by October 1, 2026, and annually thereafter, and a summative report to the General Assembly by April 1, 2027.

AI Summary

This bill requires the Department of Education to create and implement a "phased reduction model" for the Child Care Subsidy Program, which provides financial assistance for childcare. The goal is to prevent families from suddenly losing all childcare assistance if their income increases slightly. Instead, as a family's income rises above the initial eligibility limit, their subsidy will be gradually reduced in stages, with each stage corresponding to a specific income increase and a proportional decrease in the subsidy amount, not exceeding a 10 percent reduction per income tier. This phase-out period will not exceed 12 months, and families will undergo a review six months into the process with notification of when their services will end. The program will cover incomes up to 125 percent of the state median income, and families will have the right to appeal subsidy reductions. The Board of Education will establish regulations for this model, including provisions for families with special circumstances like disabilities or unexpected financial hardship. The Department will also report annually to the Governor and General Assembly on the program's implementation and financial needs, and will submit necessary amendments to the state's Child Care and Development Fund Plan to the U.S. Department of Health and Human Services.

Committee Categories

Budget and Finance, Education, Health and Social Services

Sponsors (1)

Last Action

Left in Education (on 03/14/2026)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB20
Education Amendment https://lis.virginia.gov/bill-details/20261/SB20/text/SB20AHC1
Education Amendment https://lis.virginia.gov/bill-details/20261/SB20/text/SB20AH1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (SB20) https://lis.blob.core.windows.net/files/1190769.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB20/text/SB20S1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (SB20) https://lis.blob.core.windows.net/files/1098461.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB20/text/SB20
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