June Update: Prenatal-to-3 State Legislative Trends

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In the past several months, legislatures throughout the United States passed transformative policies for children and families. This exciting, evidence-based legislation includes a historic investment in child care in Vermont, Medicaid expansion in North Carolina, and a statewide paid family leave program in Minnesota.  

But as the spring draws to a close, so too do most legislative sessions. By the end of this month, only 12 states and the District of Columbia will still be in session. Today, we bring you the final installment of our 2023 legislative updates (look for a more comprehensive review in our 2023 Prenatal-to-3 State Policy Roadmap). In this post, we cover a sample of the bills that are very close to the finish line.  

Child Care Assistance 

This year, lawmakers showed a sustained commitment to supporting families’ access to child care. Funding increases for child care subsidies passed several statehouses. These appropriations would expand eligibility, reduce family copayments, and increase reimbursement rates. 

  • Vermont: The legislature passed H. 217, a historic investment for children and families. If enacted, an annual $120 million appropriation would be derived, in part, from a payroll tax increase of 0.44%. This investment would raise the income eligibility for child care subsidies from 350% of the federal poverty level (FPL) to 575%, eliminate family copayments for families under 175% of the FPL, set copayments for families above 175% of the FPL starting at $50 a week (and scaled based on income), and raise reimbursement rates for providers by 35%.  

    Additionally, the bill would allow an increased minimum wage structure for early childhood educators, create one-time bonuses to increase child care capacity, and prohibit application and waitlist fees for child care subsidies. The legislation would position Vermont as a leader in early care and learning.
  • North Dakota: Governor Doug Burgum signed a $66 million package (H.B. 1540) to be disbursed over the next two years to strengthen the state’s child care system. The bill would eliminate subsidy copayments for families under 100% of the FPL; incentivize providers to open slots for infants and toddlers by increasing reimbursement rates; provide a stipend for early childhood educators pursuing additional training; increase support to providers seeking to be quality-rated or increase their rating; and create a pilot project for an employer-led, child care cost-share program. 
  • Montana: Awaiting Governor Greg Gianforte’s signature, H.B. 648 would make child care more accessible through the Best Beginnings Child Care Scholarship Program. Subsidy eligibility would be expanded from 150% of the FPL to 185%, and family copayments would be capped at 9% of a family’s income through an additional $7 million investment in each of the next two years.

 

Economic Supports for Working Parents 

States made important strides this year to lift working families out of poverty through paid leave and fair wage requirements. 

  • Minnesota: Governor Tim Walz signed H.F. 2, making Minnesota the 13th state to enact a statewide paid family leave program. The law provides eligible workers 12 weeks of family leave and 12 weeks of medical leave starting in 2025. The program will offer a graduated wage replacement benefit, in which workers with lower incomes will receive a higher percentage of their income. The funds will be derived from a 0.7% increase in payroll taxes shared by workers and employers. 
  • Virginia: Addressing equitable workforce compensation, the state enacted H.B. 1924 to phase out the subminimum wage for workers with disabilities. The bill gradually increases the minimum wage for these workers until the subminimum wage is fully eliminated.  

 

In our previous legislative updates, we shared that Maryland, Michigan, Montana, and New Mexico reformed their state’s earned income tax credit (EITC) and child tax credit (CTC) to align with the evidence on outcomes for young children and their families. This month, two more states passed legislation in line with this national trend. 

  • Colorado: The legislature passed H.B. 1112, which would expand the state’s EITC and CTC effective tax year 2024. The refundable EITC would increase from 25% of the federal credit to 38%. The refundable CTC would increase to a total of up to $1,200 per child, depending on family income. The bill is pending Governor Jared Polis’s signature.
  • Hawaii: Last year, the Aloha State enacted legislation to make the state EITC refundable. This year, the state took steps to bolster the program by passing H.B. 954, which would increase the value of the state EITC from 20% to 40% of the federal credit, if signed by Governor Josh Green. 

 

Child and Parent Health 

This year, North Carolina became the 40th state to expand Medicaid. Although Medicaid expansion is the most widely studied strategy for states to increase health insurance coverage, there are other options to make health care more accessible for pregnant people and children. This year, states advanced legislation to increase health care access for children, cover doula services, and expand Medicaid coverage.  

  • Florida: The Sunshine State unanimously passed landmark legislation that would provide thousands of Florida’s children more affordable health care. If signed by the governor, H.B. 121 would expand eligibility for the state’s health care insurance program for children from birth to age 18–from 215% of the FPL to 300%.
  • Colorado: In another big win for the Centennial State, S.B. 23-288 is headed to the governor. The bill would require the state to seek federal authorization for Medicaid providers to deliver doula services for pregnant and postpartum people. Additionally, the legislation would create a doula scholarship program. 

 

In our April update, we shared that Mississippi and Wyoming enacted legislation to expand Medicaid postpartum coverage. Two more states could join this national trend.     

  • Texas: This past Sunday, the Texas legislature passed H.B.12, which would extend Medicaid postpartum coverage from 60 days to 12 months, once signed by Governor Greg Abbott. 
  • Missouri: If signed by Governor Mike Parson, S.B. 106 would extend Medicaid postpartum coverage from 60 days to 12 months.  

 

Thank you for joining us as we followed the proposals states considered during this legislative season. We are thrilled to highlight efforts by policymakers and advocates to improve the opportunities for children and families in their states. These leaders’ relentless work makes all these wins possible. 

Although this post concludes our blog’s legislative updates for the year, we will release a comprehensive review of legislation introduced and enacted this session in our 2023 Prenatal-to-3 State Policy Roadmap. And since you have read this far, we will share a secret: the Roadmap will go live during our National Prenatal-to-3 Research to Policy Summit on October 12, 2023. Want to be updated the minute Summit registration goes live? Sign up for our newsletter

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