KentuckyHB 62026 Regular SessionHouseWALLET

AN ACT relating to child care and declaring an emergency.

Sponsored By: Samara Heavrin (Republican)

Became Law

Business Entities And OrganizationsChildren And MinorsEconomic DevelopmentLocal GovernmentReports MandatedState AgenciesWitnesses

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 14 benefits, 1 costs, 9 mixed.

Bigger child-care match for workers

The state matches your employer’s child-care payments based on your household income. At or below 100% of the state median income, the match is up to 100%. Above 100%, the match drops 10 points for every 20 points over 100%, up to 180%. Above 180% of the median, the match is 50%. The administrator must review a completed contract in 10 business days and, if eligible, match up to 100% of your eligible child-care costs (limited by the employer payment and the program’s match percent).

CCAP help for child-care workers

When funds allow and federal law permits, the Cabinet excludes all earned and unearned income when checking CCAP eligibility for certain child-care workers and small providers. You must meet all non-income rules and work in a licensed or certified child-care program, or own or operate a certified family child-care home or licensed Type II program. This can help more child-care workers afford their own child care.

Kindergarten readiness incentive pilot

The University of Kentucky sets up a pilot by August 1, 2026. The pilot runs August 1, 2027 to July 31, 2029 and pays a one-time $2,000 award per child marked kindergarten ready. Awards may be full, half, or split under pilot rules. Providers must keep infant/toddler ratios and records, and parents must submit records showing subsidy eligibility. UK reports annually starting June 1, 2027 and submits a final report by January 1, 2030.

More tools to find safe child care

Starting December 1, 2026, the state posts a monthly, searchable database of child-care providers with past reports. By July 1, 2027, the state also tracks and shares each provider’s real enrollment capacity and reports it at least quarterly. Anyone can request a provider’s license denials, suspensions, revocations, or violations; children’s personal info stays private. Anyone can see last year’s inspection reports and plans of correction, and parents can get five years of reports from the center. All inspections, licensed or unlicensed, are unannounced.

Quality rules fit each setting

By October 1, 2026, the Cabinet must adopt quality rules tailored to certified family child-care homes and licensed Type II centers. The Cabinet works with the Family Child Care Network of Kentucky.

Stronger safety enforcement in child care

The Cabinet must act if a center fails to fix violations or keeps operating after emergency action. It can order compliance, seek an injunction to stop operation, cut child-care subsidy payments, or suspend or revoke the license. Centers and certified family homes cannot use corporal physical discipline such as spanking, shaking, or paddling.

Reserved funds for small employers

Each year, 25% of the Employee Child Care Assistance Partnership fund is set aside for small businesses. A small business has fewer than 50 employees who each work more than 35 hours per week. The exact dollars depend on the fund size.

Better child-care data and maps

Starting December 1, 2026, the state publishes a monthly snapshot of licensed and certified providers, Head Start, Defense Department child care, and state preschool. The law defines “potential need,” “real capacity,” and “supply” to standardize reporting. Starting July 1, 2027, the state publishes a quarterly report showing gaps between supply and estimated need at the state, regional, and county levels.

Certified Child Care Community program

Local governments can choose to seek certification to grow child-care supply. To qualify, they form a task force, make a strategic plan, and map and fix zoning or ordinance barriers with community input. The Cabinet posts a standard application by January 1, 2028 and starts taking applications no earlier than that date. Applicants get an approval or denial with reasons within 30 days.

Microcenters capped, targeted expansion

Beginning July 1, 2027, the state caps microcenters at 10 statewide and no more than 2 in any county. The Cabinet prioritizes microcenter applications that serve rural areas or opportunity zones, parents with nontraditional work hours, and those with employer, school, or faith partners. The Cabinet must run an outreach plan with nonprofits and local referral agencies so families and providers learn about the program. Reports to lawmakers are due by December 1, 2027 and December 1, 2028 on applications, locations, children served, variances, and how the program works.

New child-care microcenters

The law creates a microcenter option for programs serving 4–24 children for more than three hours a day. The Cabinet writes rules by July 1, 2027 and starts taking applications no earlier than July 1, 2027, with a 90‑day decision. Applicants must have 3+ years of licensure or certification, be in good standing, and take part in the state quality rating system. Microcenters do not have to provide meals or transport, and playgrounds are optional if they plan for gross motor activity. Mixed-age groups are allowed, but capacity is set by the youngest child, and providers can seek one nontransferable variance per year that must protect child health and safety.

Easier sign-up and oversight

By December 1, 2026, the state hires a private administrator to run the employer child-care program. Starting in 2026, the administrator accepts contracts 90 days before July 1 for renewing employers and 45 days before for others. The administrator must offer an online application, verify eligibility, handle payments, give updates, and support faster preapproval and reapplication. The Cabinet partners with nonprofits in all 15 districts to promote the program and publishes reports twice a year. The Cabinet may let the administrator keep a percentage of contributions or matches and may pay performance incentives.

Spending transparency and rate planning

By October 1, 2026 and every year after, the state publishes a report of all state and federal child-care and early education spending, program sources, uses, and braided funding. The Cabinet also seeks federal approval to use a cost model to inform Child Care and Development Fund payment rates for 2028–2030, considering provider type, hours, ages, location, quality, staffing, facilities, training, and supplies.

Child care quality plan and freeze

The Cabinet cannot change the state’s quality-based child care program unless lawmakers allow it or federal law or funding requires it. If it uses the federal exception, it must notify the Interim Joint Committee first. By October 1, 2026, the Cabinet submits a plan explaining how it will develop modernization recommendations. By December 1, 2027, the Cabinet submits final recommendations to the Legislative Research Commission and key committees.

Optional faith-based program label

Providers can opt in to a faith-based label that shows in public child-care databases. State agencies cannot use the label to favor or punish providers.

Therapists can serve kids at centers

If your child in licensed or certified care has an IFSP or IEP and you give written notice, the provider cannot block the diagnostician, therapist, or interventionist from coming on site to serve your child. The law does not require school districts to send their staff.

Fairer inspections and appeals

When a violation is found, the notice must list the facts, the rule broken, and a correction timeline. Immediate threats must be fixed within five working days. Providers get an informal dispute process and can appeal license actions or civil penalties within 20 days. When setting penalties, the inspector general must weigh severity, past violations, corrective efforts, and what assures compliance.

Pilot waiver for DOD-certified homes

From July 1, 2026 through June 30, 2028, some DOD-certified family child-care homes outside bases are exempt from state certification. They must serve only children eligible under DOD rules, hold a DOD child-care certificate, and pass DOD background checks. The military registers these homes with the Cabinet and gives quarterly updates. The Cabinet reports to lawmakers by December 1, 2026 and December 1, 2027.

Annual license fees and renewals

Child-care centers must pay an initial license fee and may pay renewal fees each year. Fees cannot be higher than the Cabinet’s administrative costs. Licenses expire one year after they take effect. The Cabinet can set rules on license fees, care standards, criminal record criteria, and enforcement.

More training for child-care staff

Within three months, caregivers must complete at least six hours of orientation on health, safety, abuse reporting, and child-care practice. Each year, caregivers must complete at least six hours of child development training. Once every five years, 1.5 hours must cover pediatric abusive head trauma. Licensed providers must take three hours a year on working with children with special needs; certified family providers take two hours. The Cabinet develops or approves model training and video materials.

Ads must list care address

Any ad for child-care services must include the address where care is provided. This improves transparency for families and adds a clear disclosure step for advertisers.

Employer and provider payment rules

Employers must pay contributions either all at once or on the contract schedule, and the administrator quickly sends them with the state match to providers. If a contract ends early, leftover employer funds go back to the employer. Employers must tell the provider and administrator within three business days when an employee leaves. Providers must tell the administrator within five business days if an employer misses a payment and return money for services not given within five days. If the state paid a match by mistake because notices were late, the responsible party must repay the fund.

Licensing rules and fix-it window for providers

You must be licensed to operate or advertise a child-care center in Kentucky. Before refusing or revoking a license for failing standards, the Cabinet gives up to six months to fix issues, unless there is an immediate health or safety threat.

Child-care admin funding changes

Starting in fiscal year 2026–2027, up to 10% of the Employee Child Care Assistance Partnership fund can pay administrative costs, up from 3%. Fees for child-care licenses and certifications go into a special state fund to run these statutes and to pay people in child-care workshops. Any balance in that special fund moves to the general fund at the end of each two-year budget.

Sponsors & Cosponsors

Sponsor

Samara Heavrin
Republican • House

Cosponsors

Amy Neighbors
Republican • House
Beverly Chester-Burton
Democrat • House
Danny Carroll
Republican • Senate
Daniel Grossberg
Democrat • House
David Meade
Republican • House
David W. Osborne
Republican • House
DJ Johnson
Republican • House
Jim Gooch Jr.
Republican • House
Josh Branscum
Republican • House
Jason Nemes
Republican • House
J.T. Payne
Republican • House
Kevin Jackson
Republican • House
Kimberly Poore Moser
Republican • House
Mike Clines
Republican • House
Michael Sarge Pollock
Republican • House
Ryan Bivens
Republican • House
Robert Duvall
Republican • House
Steve Bratcher
Republican • House
Stephanie Dietz
Republican • House
Chris Lewis
Republican • House
Shawn McPherson
Republican • House
Susan Witten
Republican • House
Tony Hampton
Republican • House
Vanessa Grossl
Republican • House
William Lawrence
Republican • House
Walker Thomas
Republican • House
Wade Williams
Republican • House

Roll Call Votes

All Roll Calls

Yes: 203 • No: 22

Senate vote • 3/31/2026

3rd reading, passed

Yes: 36 • No: 1

House vote • 3/31/2026

passed

Yes: 83 • No: 10

House vote • 2/17/2026