This bill, introduced in the Minnesota House of Representatives, aims to establish a Great Start Affordability Scholarship Program to help families with the cost of child care.

Key Provisions of the Bill:

1. Program Development & Implementation:

   • The commissioner must identify ways to integrate early care and learning programs with the new Great Start Scholarships.
   • The program will transition certain families receiving child care assistance or early learning scholarships to the new Great Start Scholarships by July 1, 2028.
   • Ensures local community input in decision-making about early care and learning options.
   • Develops funding mechanisms to increase statewide early childhood education capacity.
   • Maximizes federal resources while maintaining child care assistance.

2. Eligibility Criteria for Families:

   • Families must have an income below 150% of the state median income.
   • Eligible children must not be concurrently receiving child care assistance or an early learning scholarship.
   • Scholarships will continue yearly until the child is eligible for kindergarten.
   • Children from bordering states living in Minnesota postal-designated addresses may also qualify.

3. Eligibility for Early Care & Learning Providers:

   • Providers must participate in Minnesota’s Quality Rating and Improvement System.
   • Scholarship funds must supplement, not replace, federal funding.

4. Scholarship Administration:

   • Families must apply and renew scholarships annually.
   • Scholarships can be modified based on changes in family circumstances.
   • Scholarships will be canceled if the child moves out of state, is no longer eligible, or the family declines participation.

5. Scholarship Amounts & Payments:

   • The commissioner will establish monthly scholarship amounts based on family income, with a minimum of $100 per child per month.
   • Payments will be made to eligible programs based on a child's enrollment rather than attendance.
   • The payment system will facilitate seamless transfers between programs.

6. Funding & Administration Costs:

   • A Great Start Affordability Scholarship Account will be created to manage allocated funds.
   • Up to 7% of the funds can be used for administrative costs.

7. Family Notifications:

   • The state will notify families about their eligibility and opportunities.
   • Child care providers must indicate on billing statements that portions of tuition covered by scholarships are state-provided benefits.

Effective Dates:

• Scholarships must begin by July 1, 2026.
• Complete transition of eligible families to the program by July 1, 2028.

This bill seeks to improve affordability and access to high-quality early childhood education by capping family contributions at 7% of their annual income for child care and education costs.