Purpose of the Bill

The bill aims to establish a program that helps Minnesota families afford child care by providing financial assistance through the Great Start Affordability Scholarship. Its goal is to ensure that no family in Minnesota pays more than 7% of their annual income on early care and learning programs.

Main Provisions

• Scholarship Establishment: The Great Start Affordability Scholarship program is designed to make high-quality early care and learning more affordable for families with children from birth through kindergarten entry.
• Family Eligibility: To qualify, families must have an income less than 150% of the state median income and children not already receiving other specific state childcare aids.
• Program Eligibility: Childcare programs eligible to receive scholarships must participate in the state's quality rating and improvement system.
• Scholarship Administration: Scholarships are awarded for a 12-month period, with specific conditions under which they can be canceled, such as families moving out of state or no longer having eligible expenses.
• Funding and Payment: A special account will be created to manage scholarship funds. Payments to providers are made based on enrollment criteria, and scholarship funding can be adjusted according to family income levels.
• Family Notifications: The state will inform families of potential eligibility for scholarships, and programs must indicate the amount of tuition paid by the scholarship in billing statements.
• Effective Date: The implementation of payments for scholarships is set to start by July 1, 2026.

Significant Changes to Existing Law

• The legislation introduces a new mechanism by which eligible families are transitioned to the Great Start Affordability Scholarship program, consolidating multiple existing child care financial support systems.
• It extends the state's responsibility to manage child care funding through direct scholarships with established minimum guarantees ($100 per month per child).

Relevant Terms

Great Start Affordability Scholarship, early care and learning, Minnesota childcare assistance, family income eligibility, scholarships for tuition, quality rating and improvement system.