Change requirements for child care reimbursement rates

Nebraska's LB 71 updates how the state reimburses child care providers under the federal Child Care Subsidy program. It requires the Department of Health and Human Services to adjust reimbursement rates every odd year based on market rates, ensuring rates are at least the 75th percentile of local costs. Quality-rated child care programs (Step Up to Quality Act) and nationally accredited providers may receive higher reimbursement rates. The bill also changes income eligibility thresholds for child care assistance, raising the limit to 185% of the federal poverty level before October 2026 and lowering it to 130% after that date.