Nebraska lawmakers give child care subsidies a second chance in the Legislature

Nebraska Sen. Wendy DeBoer on Monday successfully saved higher child care subsidies from the chopping block after lawmakers removed them from the budget last week.

The legislature opened the session with a more-than $470 million budget deficit, which is now estimated to be closer to $38 million.

Nebraska passed a law in 2021 that temporarily increased household income requirements for child care subsidies. The eligibility threshold went from 130% to 185% of the federal poverty level. This raised the cap from $42,000 to $59,000 a year for a family of four. DeBoer’s bill to continue the subsidies will cost over $3 million this year, with an additional $4.2 million cost each year after.

The new limits were set to revert to the lower ones in October. DeBoer said the subsidies do more than help out families.

“It helps grow the economy, it helps grow the workforce and it helps families that need that help so they can do that work in the workforce,” DeBoer said.

Lawmakers split on whether the subsidies would ultimately support or hamper the Nebraska workforce.

Some, like Sen. Kathleen Kauth, argued against continuing the higher subsidies, arguing that they cost taxpayers money while causing other Nebraskans to lean too much on the state for assistance.

“This is no different than us saying to the taxpayers ‘Hey listen, we want to take money from you and give it to someone else so they can have their child in child care,’” Kauth said.

She argued that the state should instead concern itself with regulations or make it easier for children to get into child care. But DeBoer said decreasing the subsidy would impact over 1,000 Nebraska families, who would have to turn down promotions at work or even give up their jobs altogether to avoid the cost of child care.

DeBoer filibustered the bill Monday afternoon to prevent the opposition from changing it, but at 8 p.m., she struck a deal and withdrew her filibuster. Senators then took the opportunity to discuss Kauth’s amendment, which would add in a three-year sunset, giving future lawmakers a chance to review the subsidies, and lowering the eligibility from 185% to 160%.

Bill opponents, like Sen. Ben Hansen, supported the amendment, arguing that it was a more reasonable proposition. Even supporters agreed with the sunset clause, like Sen. Jana Hughes, who suggested the sunset be longer than three years. But lawmakers defeated the amendment on a 24-18 vote before advancing the bill 39-8.

More from the Unicameral:

Firefighter cancer bill fails amid complaints about legislative process

Nebraska legislators pass budget after cutting private school scholarships, child care subsidies

Legislature advances protections for survivors of child sex abuse

Senator pushes back on proposed regulations for consumable hemp products

Nebraska budget stalls in Legislature again over scholarship issue

Legislature advances tax credits to keep Union Pacific in the state

Proposals for foreign-trained doctors, ag data privacy advance in Legislature

Legislature stops plan to shuffle youth correctional system, opts for study