A bill for an act relating to state child care assistance reimbursement rates.

HF 344 changes Iowa's child care assistance program to require the state to reimburse child care providers at the rate they typically charge private-pay families, rather than the current system that capped reimbursement at the lower of the provider's rate or a state-set rate. This directly affects child care providers serving families enrolled in the state child care assistance program. The bill eliminates the practice where providers could not collect the full difference between their private rate and the state reimbursement. Providers will now receive full payment based on their standard private rates for eligible children.