Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: KIM EVANS, DIRECTOR
SUBJECT: INCREASE IN CHILD CARE INCOME ELIGIBILITY GUIDELINES AND PROVIDER RATE INCREASES
DISCUSSION:
Income eligibility limits for the child care subsidy program will be adjusted according to the Federal Poverty Level guidelines on October 15, 2022, and are retroactive back to October 1, 2022. Per House Bill 2 a third level of transitional care was added, which increases the maximum income threshold up to 242% of the Federal Poverty Level.
Percentages of the Federal Poverty Level for income guidelines for all levels of child care are as follows:
- Traditional Child Care 150%
- Transitional Child Care 1 (TCC1) 151% – 185%
- Transitional Child Care 2 (TCC2) 186% – 215%
- Transitional Child Care 3 (TCC3) 216% – 242%
Participants receiving child care at a transitional level will be responsible for paying the sliding fee as well as the remaining percentage after the Department of Elementary and Secondary Education (DESE) pays their portion.
DESE will be paying the following percentages of the state base rate for TCC:
- TCC1 80%
- TCC2 60%
- TCC3 50%
The new income guidelines and sliding fee chart has been updated and can be found at https://dese.mo.gov/media/pdf/office-childhood-child-care-eligibility-income-guidelines-and-sliding-fee-chart.
New provider rates are in effect October 1, 2022. The data collected from the 2022 Market Rate Survey in conjunction with House Bill 3002 section 2.505 was used to determine the new rates. Approximately 75% of providers will see an increase in their subsidy rates. Rates are posted on the child care subsidy website at https://dese.mo.gov/childhood.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.
KE/hd