Minnesota House Passes Bills To Make Child Care More Affordable For Low-Income Families

By Michelle Griffith, Minnesota Reformer:

The Minnesota House on Monday night passed two bills that aim to make child care more affordable for low-income Minnesotans.

Lawmakers first approved — along party lines with Republicans in opposition — a bill (HF150) allocating over $52 million in early learning scholarships and provider stabilization funds.

Legislators then debated and passed a bill — again along party lines — that would bolster the Minnesota Child Care Assistance Program, which helps low-income parents pay for child care while they are working or in school. Most of the floor session’s debate centered on the second.

“Both of (the bills) are aimed at making sure our kids get off to a great start in Minnesota and we can address the needs in child care and early learning in our state,” said Rep. Dave Pinto, DFL-St. Paul.

Pinto, who chairs the House Children and Families Finance and Policy Committee, said the bills were merely a “tourniquet on a gaping wound,” as more child care assistance is needed.

Minnesota families suffer from some of the costliest child care costs in the country, which depresses economic growth by keeping people at home when they might rather be working.

The Minnesota Child Care Assistance Program bill (HF13) raises reimbursement rates for providers in the program to 75% of the market rate, which is determined by an analysis of prices charged by Minnesota licensed providers. The state’s current reimbursement rate is 40% of market rate for infants and toddlers and 30% for pre-school and school-aged children.

A fiscal note attached to the bill estimates the reimbursement increase would cost over $350 million in fiscal years 2024-25 and over $590 million in fiscal years 2026-27.

“This is so parents can work, so that employers can expand (and) we can deal with the worker shortages we’re seeing in all the sectors that we all care about which really have child care at the base,” Pinto said.

Republicans argued the bill would exacerbate fraudulent activity within the Minnesota Child Care Assistance Program. The Republicans House members were referring to a 2019 Office of the Legislative Auditor report that found the program suffered from a lack of oversight.

The report addressed an allegation that child care providers defrauded the state of $100 million annually, but the audit found no evidence to substantiate that claim.

“It is time to stop fully funding fraud and take meaningful measures to protect taxpayers and the children who rely on effective programs serving their best interests,” House Minority Leader Lisa Demuth, R-Cold Spring, said on the floor.

To address potential fraud, the Child Care Assistance Program bill would expand the Department of Human Services commissioner’s authority to withhold payments to providers if the state or federal government are investigating allegations.

“All Minnesota children deserve a great start in life,” said House Speaker Melissa Hortman, DFL-Brooklyn Park, in a statement. “Our children are only young once. Investments now — like the ones we’re proposing — will positively impact them for the rest of their lives.”

Both bills now go to the Senate for consideration.

The Minnesota Reformer is an independent, nonprofit news organization dedicated to keeping Minnesotans informed and unearthing stories other outlets can’t or won’t tell..