A bill for an act relating to state child care assistance income eligibility requirements, and child care provider reimbursement rates.

SF 353 increases income eligibility limits for Iowa's state child care assistance program (CCA) over several years. For children needing basic care, the limit rises from 160% to 200% of the federal poverty level (FPL) in phases starting July 2025. For children needing special needs care, the limit increases from 200% to 240% of FPL over the same period. The bill also requires the state to set provider reimbursement rates based on the most recent statewide survey of private pay rates, keeping payments between the 65th and 80th percentiles of what providers charge families paying privately. This directly affects low-income families seeking child care assistance and child care providers receiving state payments.