Support LB 304: Eliminate the Sunset Date on the Expanded Eligibility for the Childcare Subsidy

Chairman Hardin and members of the Health and Human Services Committee:

My name is Garret Swanson, G-A-R-R-E-T S-W-A-N-S-O-N and I am here on behalf of the Holland Children’s Movement, a nonpartisan, not-for-profit organization that strives to fulfill its vision for Nebraska to become a beacon in economic security and opportunity for all children and families, in support of LB 304.

Thank you for taking the time to hold this hearing Senators. A lot of great testimony has been heard and I want to not retread ground that has already been walked on. With that in mind I just wanted to provide actual data and research for the record and your consideration.

In 2021 the Census Bureau studied the impact of the Child Care Subsidy on working mothers. Through examining data from the Child Care and Development Fund, the Social Security Administration, and the Census Bureau’s Current Population Survey the Census Bureau found that working mothers were 7% more likely to retain their job after four years if they received the subsidy then when they didn’t. The study also found that working married mothers were 7% more likely to receive equitable wages when compared to their spouse. These percentages increased when examining just marginalized groups and not the whole population.

In 2021, Morning Consult conducted a survey of 654 parents living in rural areas with children under the age of 5. In that survey 68% of respondents said they had considered formal child care options. Of those that sought child care, 34% said their provider was experiencing an employee shortage. 60% of respondents said they were not receiving any federal subsidy. 25% said they were not aware options existed. Parents in the Midwest region of polling were the least likely to receive a subsidy and know that options were available.

In a study published in 2023 by the National Advisory Committee on Rural Health and Human Services, they found that 63% of low income rural residents live in a child care desert compared to 46% in urban areas. Although the federal government in the Childcare Development Block Grant specified that the co-payments for parents that receive the child care subsidy should not exceed 7% of family income, as of 2014 rural families were spending 12.2% of their income on child care. That percentage has likely increased.

Alright, that is a lot of information. But I wanted to bring it all up just to highlight that there is still a lot to do past passing LB304 such as raising awareness for this program and continuing to advocate for rural areas. We also need to look at what our other friends in the midwest are doing, for example Wisconsin, which now puts eligibility for the child care subsidy at 200% of the Federal Poverty Level while ours is 185%. Or Minnesota, a state which will have paid parental leave starting January 1st of next year.