HB 1108 — An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in public assistance, further providing for copayments for subsidized child care; and making a repeal.

PRINTER'S NO.     1227

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1108
                                                Session of
                                                  2025

     INTRODUCED BY E. NELSON, GIRAL, VENKAT, M. MACKENZIE, KHAN,
        HILL-EVANS, BRENNAN, BURGOS, HANBIDGE, DOUGHERTY, K.HARRIS,
        STENDER, D. WILLIAMS, FLEMING, COOK, BENNINGHOFF, FLOOD,
        SCHLEGEL, DAVANZO, B. MILLER AND CIRESI, APRIL 3, 2025

     REFERRED TO COMMITTEE ON HUMAN SERVICES, APRIL 3, 2025


                                     AN ACT
 1   Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
 2      act to consolidate, editorially revise, and codify the public
 3      welfare laws of the Commonwealth," in public assistance,
 4      further providing for copayments for subsidized child care;
 5      and making a repeal.
 6       The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8       Section 1.    Section 408.3 heading, (c), (e) and (f) of the
 9   act of June 13, 1967 (P.L.31, No.21), known as the Human
10   Services Code, are amended to read:
11       Section 408.3.    [Copayments for] Subsidized Child Care.--* *
12   *
13       (c)   In establishing the copayment amounts pursuant to this
14   section, all of the following shall apply:
15       (1)   Copayments shall be on a sliding scale based on a
16   percentage of the family's annual income taking into account
17   Federal poverty income guidelines and considerations to support
18   economic self-sufficiency. Copayments shall be updated annually.
 1      (2)     At the department's discretion, copayments may be
 2   imposed:
 3      (i)     for each child enrolled in subsidized child care;
 4      (ii)     based upon family size; or
 5      (iii)     in accordance with both subparagraphs (i) and (ii).
 6      (3)     Copayment amounts shall be a minimum of five dollars
 7   ($5) per week and shall increase in incremental amounts, based
 8   on a percentage of the family's annual income, as determined by
 9   the department.
10      [(3.1)     At initial application, the family's annual income
11   may not exceed two hundred percent of the Federal poverty income
12   guidelines.
13      (3.2)     After an initial determination or redetermination of
14   eligibility, a child shall continue to be enrolled in subsidized
15   child care for twelve months regardless of either of the
16   following:
17      (i)     A temporary change in the parent or caretaker's status
18   as working or attending a job training or educational program.
19      (ii)     An increase in the family's annual income, if the
20   income does not exceed eighty-five percent of the State median
21   income for a family of the same size.]
22      (4)     [Subject to subsection (e), a] A family's annual
23   copayment under either paragraph (1) or (2) shall not exceed:
24      (i)     eight percent of the family's annual income if the
25   family's annual income is one hundred percent of the Federal
26   poverty income guideline or less;
27      (ii)     eleven percent of the family's annual income if the
28   family's annual income exceeds one hundred percent of the
29   Federal poverty income guideline, but is not more than two
30   hundred fifty percent of the Federal poverty income guideline;

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 1      (iii)    thirteen percent of the family's annual income if the
 2   family's annual income exceeds two hundred fifty percent of the
 3   Federal poverty income guideline, but is not more than two
 4   hundred seventy-five percent of the Federal poverty income
 5   guideline; or
 6      (iv)    beginning after July 1, 2017, fifteen percent of the
 7   family's annual income if the family's annual income exceeds two
 8   hundred seventy-five percent of the Federal poverty income
 9   guideline, but is not more than three hundred percent of the
10   Federal poverty income guideline or eighty-five percent of the
11   State median income, whichever is lower.
12      (5)    Notwithstanding this subsection, beginning with State
13   fiscal year 2012-2013, the department may adjust the annual
14   copayment percentages specified in this subsection by
15   promulgation of final-omitted regulations under section 204 of
16   the act of July 31, 1968 (P.L.769, No.240), referred to as the
17   "Commonwealth Documents Law."
18      [(6)    Subject to subsection (e), at a redetermination, after
19   June 30, 2017, a family that exceeds the minimum work
20   requirements as a result of each parent or caretaker or, in the
21   case of a single-parent household, as a result of the sole
22   parent or caretaker, by working additional wage-earning hours
23   shall have a reduced copayment, not to be less than that which
24   is set forth under paragraph (3). This paragraph shall apply
25   only to a family that, after mutually qualifying for and
26   receiving subsidized child care and being current on the
27   required copayments as set forth in this subsection, increases
28   its average work week after the effective date of this paragraph
29   and has increased the family's annual income as a result of
30   working additional wage-earning hours. The copayment deduction

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 1   shall be applied as follows:
 2      (i)    For an average work week of at least twenty-five wage-
 3   earning hours per parent or caretaker, a three-quarters of one
 4   percent deduction from the amount set forth under this
 5   subsection.
 6      (ii)    For an average work week of at least thirty wage-
 7   earning hours per parent or caretaker, a one and one-half
 8   percent deduction from the amount set forth under this
 9   subsection.
10      (iii)    For an average work week of at least thirty-five wage-
11   earning hours per parent or caretaker, a two and one-quarter
12   percent deduction from the amount set forth under this
13   subsection.
14      (iv)    For an average work week of at least forty wage-earning
15   hours per parent or caretaker, a three percent deduction from
16   the amount set forth under this subsection.
17      (7)    At its redetermination of eligibility, a parent or
18   caretaker shall provide documentation of its average work week
19   hours to receive the child care copayment deduction. The
20   department shall apply the copayment deduction after receiving
21   the required documentation.
22      (8)    A family that has previously qualified for a deduction
23   in the child care copayment shall continue to remain eligible
24   for the copayment deduction if:
25      (i)    the family's annual income does not exceed three hundred
26   percent of the Federal poverty income guideline or eighty-five
27   percent of the State median income, whichever is lower;
28      (ii)    the parent or caretaker has been in compliance with
29   paragraph (7);
30      (iii)    the parent or caretaker continues to exceed the

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 1   minimum work requirements by working additional wage-earning
 2   hours;
 3      (iv)    the family's annual income has increased as a result of
 4   working additional wage-earning hours; and
 5      (v)    the parent or caretaker is current and remains current
 6   with making its copayment to the child care provider.
 7      (9)    The average work week of a family shall be calculated by
 8   reviewing the family's income statements and taking the number
 9   of hours worked per parent over a twelve-month period and
10   dividing by fifty-two.]
11      * * *
12      (e)    [To the extent that money is appropriated for the
13   purpose, the department shall increase eligibility under
14   subsection (c)(4) for subsidized child care from two hundred
15   thirty-five percent of the Federal poverty income guideline up
16   to three hundred percent of the Federal poverty income guideline
17   and shall apply a copayment deduction under subsection (c)(6).
18   The department shall not be required to maintain eligibility
19   above two hundred thirty-five percent of the Federal poverty
20   income guideline or apply a copayment deduction unless funding
21   is appropriated by the General Assembly.
22      (f)    As used in this section, "wage-earning hours" means
23   hours for which an individual is financially compensated by an
24   employer. The term does not include hours spent volunteering, in
25   education or in job training, unless those hours are compensated
26   as a condition of employment.] The following shall apply to
27   eligibility for subsidized child care:
28      (1)    At an initial determination, the family's annual income
29   may not exceed two hundred percent of the Federal poverty income
30   guidelines.

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 1      (2)    At a redetermination, the following shall apply:
 2      (i)    Except as provided under subparagraph (ii)(A), the
 3   family's annual income may not exceed two hundred thirty-five
 4   percent of the Federal poverty income guidelines or eighty-five
 5   percent of the State median income for a family of the same
 6   size, whichever is lower.
 7      (ii)    As follows:
 8      (A)    To the extent that money is appropriated by the General
 9   Assembly for the purpose of this clause, the family's annual
10   income may not exceed three hundred percent of the Federal
11   poverty income guidelines or eighty-five percent of the State
12   median income for a family of the same size, whichever is lower.
13      (B)    For fiscal year 2023-2024 and each fiscal year
14   thereafter, no less than twenty-five million dollars
15   ($25,000,000) from money appropriated to the department for
16   child-care services shall be used for the purposes specified
17   under clause (A).
18      (3)    For twelve months after an initial determination under
19   paragraph (1) or a redetermination of eligibility under
20   paragraph (2), a child shall remain eligible for subsidized
21   child care regardless of either of the following:
22      (i)    A temporary change in the parent or caretaker's status
23   as working or attending a job training or educational program.
24      (ii)    An increase in the family's annual income, if the
25   income does not exceed eighty-five percent of the State median
26   income for a family of the same size.
27      Section 2.     Repeals are as follows:
28             (1)   The General Assembly declares that the repeal under
29      paragraph (2) is necessary to effectuate the amendment of
30      section 408.3 heading, (c), (e) and (f) of the act.

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1         (2)   Section 1729-E(a)(8) of the act of April 9, 1929
2     (P.L.343, No.176), known as The Fiscal Code, is repealed.
3     Section 3.    This act shall take effect in 60 days.




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