Every day across Nebraska, parents work hard to provide for their families and give their children a strong start. But for many, especially families with  lower income, the cost of child care is a major barrier to financial stability. Nebraska’s child care subsidy helps families overcome those barriers so they can work, grow and remain self-sufficient.

LB304 makes current income eligibility requirements permanent, ensuring more working families can afford quality care and stay in the workforce. Without it, eligibility would have dropped later this year, cutting off thousands of Nebraskans from the child care they rely on to go to work and provide for their families.

What child care assistance does for families

In 2021, state lawmakers passed legislation that temporarily raised the child care assistance income eligibility for families from 130% to 185% of the Federal Poverty Level (FPL). For a family of four in 2025, that amounts to the difference between $42,000 (130% FPL) and $59,000 (185% FPL). But in October 2026, that eligibility level would have returned to 130% FPL, plummeting Nebraska to nearly the lowest state in the nation for access to child care assistance. LB304 makes the current income eligibility level permanent, keeping child care within the reach of more Nebraska families.

Had LB304 not passed, thousands of Nebraska parents likely have reached a point where the high cost of child care outweighed the benefits of participating in the workforce. That would have had a significant impact on children, families and the workforce that sustains important industries like construction, food production and health care. The passage of LB304 ensures that:

• About 2,500 families remain eligible for child care assistance
• Families have improved ability to find employment because of access to child care.
• More infants—the most expensive age group for child care—qualify for child care assistance, making it easier for parents to return to work.