SOCIAL SERVICES CHILD CARE ASSISTANCE REQUIREMENTS FOR CHILD CARE ASSISTANCE PROGRAMS FOR CLIENT AND CHILD CARE PROVIDERS

Summary

The New Mexico Early Childhood Education and Care Department is proposing to adopt new amendments to 8.9.3 NMAC. The proposed changes include:

Higher rates for providers – ECECD has conducted a second round of cost modeling to inform updated child care assistance reimbursement rates. The new rates will be significantly higher, increasing by 20-30 percent for the average program participating in CCA. The new rates are calculated to preserve the $3/hr raise for child care workers currently provided through the Competitive Pay for Professionals grant, which will expire on September 1, 2023. New rates are set to go into effect August 1, 2023.
Expanded eligibility and family copay waivers extended – The CCA program will continue to offer expanded income eligibility for child care assistance to families earning up to 400% Federal Poverty Level ($120k/year for a family of four). ECECD will also continue waive all copays for eligible families. Both initiatives were originally set to expire July 1, 2023 – both will continue indefinitely.
New family copay schedule – Copays will continue to be waived, but ECECD is required under federal regulations to maintain a copay schedule within its CCA rules. The new copay schedule is more equitable, balanced, and less-financially burdensome for families, capped at five percent of household income. ECECD will provide public notice three months in advance in the event the new schedule takes effect.
No Gross Receipts Taxes (GRT) paid by CCA families – The new CCA rates are calculated to offset Gross Receipts Taxes for providers who are required to pay them. Providers may not charge CCA families GRT moving forward.

A full copy of the proposed amendments and rule changes can be found on the ECECD website.