Budget & Taxes (Children)

HB 5628 requires West Virginia's Department of Human Services to develop policies that prevent the sudden loss of child care assistance when families experience modest income increases. It directly affects low-income families who would otherwise lose subsidies abruptly as their earnings rise slightly, creating instability in child care arrangements. Key provisions include implementing graduated phase-outs (so assistance decreases gradually), expanding sliding fee scales based on income, raising income thresholds for continued eligibility, and establishing transitional support periods. The department must adopt these policies by January 1, 2027, and submit annual reports on implementation to the legislature.

SB 754 creates a special fund called the "Foster Care Facilities Improvement Fund" to support West Virginia nonprofit organizations operating foster care facilities. The fund, financed through state appropriations, donations, and investment income, prioritizes grants for renovating, constructing, or maintaining residential childcare facilities - especially those providing psychiatric, neurodevelopmental, and trauma services. An Advisory Committee (appointed by the Department of Human Services) recommends quarterly disbursements based on identified needs, with priority given to local nonprofits improving facility access and quality. The bill ensures unspent balances roll over annually and reinvests savings from reduced out-of-state placements to expand high-quality care within the state.

This bill creates a structured support system for West Virginia youth aging out of foster care (typically 18-21 years old). It requires the Department of Human Services to develop a three-phase living arrangement system (supervised independent living, scattered-site housing, and supportive independent living) plus mandatory life skills training in housing, employment, and education. Funding will use per diem rates designed to maximize federal reimbursement, include annual cost-of-living adjustments, and provide monthly stipends to youth for basic living costs. The system must incorporate input from former foster youth, providers, and community partners, with annual reporting on outcomes like housing stability and employment.

HB 5078 creates a refundable state child tax credit for West Virginia residents who claim the federal child tax credit for eligible children. The credit equals 50% of the federal child and dependent care tax credit amount claimed on the federal return, directly supporting working families with children. For tax years starting January 1, 2025, any credit amount exceeding the resident's state income tax liability is refunded to the individual. This policy change expands state support for families already qualifying for the federal credit, aiming to reduce child poverty and bolster local economies.