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Bill > A1374


NJ A1374

NJ A1374
Extends child care subsidies to families earning up to 300 percent of federal poverty level; appropriates funds.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill raises the annual household income limit for determining initial income eligibility under the State's subsidized child care assistance program. Currently, initial eligibility determination in the State's subsidized child care assistance program is limited to families that report a maximum annual gross family income of 200 percent of the federal poverty level (FPL), which is $55,500 for a family of four in 2022. However, according to the most recent ALICE Report by the United Ways of New Jersey, the average ALICE - Asset Limited, Income Constrained, Employed - Household Survival Budget in the State was $88,224 for a family of four in 2018. In 2018, 37 percent of New Jersey's 3.2 million households struggled to make ends meet, with 27 percent of these households categorized as ALICE households. This bill raises the maximum initial income eligibility, and subsequent redetermination income eligibility, for the State's subsidized child care assistance program to 300 percent of the FPL, which is $83,250 for a family of four in 2022. The Commissioner of Human Services will be required to establish and utilize at least four tiers to determine initial income eligibility and placement on the Division of Family Development's co-payment schedule for child care services under the State's subsidized child care assistance program. The bill specifies that nothing in its provisions precludes the commissioner from establishing a child care assistance income threshold that is higher than 300 percent of the FPL. The bill additionally appropriates such sums as may be necessary to implement the provisions of the bill, which appropriation will be in an amount determined by the Commissioner of Human Services, subject to approval by the Director of the Office of Management and Budget in the Department of the Treasury.

AI Summary

This bill expands eligibility for the State's subsidized child care assistance program by raising the maximum annual household income limit for initial eligibility from 200 percent to 300 percent of the federal poverty level (FPL), which is $83,250 for a family of four in 2022, addressing the financial struggles of many families, including those categorized as ALICE (Asset Limited, Income Constrained, Employed), who may have incomes above the current threshold but still struggle to afford basic necessities like childcare. The Commissioner of Human Services will establish at least four income tiers to determine eligibility and co-payment amounts for child care services, and the bill allows for income thresholds higher than 300 percent of the FPL for exiting the program, while also appropriating necessary funds for implementation and requiring the Commissioner to seek federal approval for these changes.

Committee Categories

Education

Sponsors (10)

Last Action

Introduced, Referred to Assembly Children, Families and Food Security Committee (on 01/13/2026)

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