MarylandHB 13212026 Regular SessionHouseWALLET

Child Care Scholarship Program - Application Process and Copays - Alterations

Sponsored By: Julie Palakovich Carr (Democratic)

Signed by Governor

Education - MiscellaneousApplicants and ApplicationsAwareness and OutreachChild CareEarly Childhood EducationEducation, State Department ofIndigent PersonsInfants and Toddlers (0-3)Low-IncomeModerate-IncomeNoticesPrices -see also- Consumer Price IndexPrivate Schools -see also- Primary Schools; Secondary SchPublic Benefits -see also- Housing; MedAsst; SupplNutrAsstPPublic Schools -see also- Primary Schools; Secondary SchReportsScholarships and Student Financial AidSunsetTime

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Lower child care copays and caps

The law sets clear copay rules for Child Care Scholarships. Families at or below the federal poverty line pay no copay. Above the poverty line, a sliding fee applies by income and by child, with lower fees for later children. The highest income band cannot be charged more than 7% of annual income. Any minimum monthly copay cannot be more than $10. The Department cannot raise copay levels that were in place on January 1, 2024. If copays are implemented, families and providers get at least 90 days’ advance notice. By December 1, 2027, the Department reports to lawmakers on the income bands used and average copays.

Stable funding and regular rate reviews

The Governor must fund the Child Care Scholarship Program each year at least at the higher of the 2018 or 2019 total levels. Every two years, the Department studies local child care market rates and consults stakeholders. By September 1 every two years, it reports costs to reach the 45th, 55th, 65th, and 75th percentiles, a minimum base payment, any rate changes, and likely effects on families and providers.

Faster payments to child care providers

After the Department gets a provider’s invoice, it must notify the Comptroller within 10 days. The Comptroller must pay the provider within 5 days after that notice. This speeds cash flow for child care businesses.

Waitlist help, but fast track ends

Presumptive eligibility is repealed, so families no longer get temporary approval right away. If enrollment is frozen, the Department must find applicants who qualify for public pre‑K, Head Start, or Early Head Start, tell them how to apply, and help on request. Before the new pre‑K enrollment system, the Department may share county slot counts; once it starts, it must share up‑to‑date county slots. Applicants also get information about other income‑based assistance and tax credits. Starting July 1, 2026, the Department monitors the waitlist; if it expects the list to clear within six months, it reports to lawmakers and reviews whether to include presumptive eligibility again.

Sponsors & Cosponsors

Sponsor

Julie Palakovich Carr
Democratic • House

Cosponsors

Jackie Addison
Democratic • House
Eric Ebersole
Democratic • House
Jessica Feldmark
Democratic • House
Aletheia McCaskill
Democratic • House
Bernice Mireku-North
Democratic • House
Cheryl E. Pasteur
Democratic • House
Edith J. Patterson
Democratic • House
Kent Roberson
Democratic • House
Joe Vogel
Democratic • House
Jheanelle K. Wilkins
Democratic • House
Greg Wims
Democratic • House
Caylin Young
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 173 • No: 6

Senate vote • 4/13/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 4

House vote • 3/11/2026