Midwest lawmakers push childcare relief amid high costs

Nebraska lawmakers and officials in nearby Midwest states are revisiting child care policy as families face costs that news outlets in the region said can rival a mortgage payment. Reporting published on Aug. 5 by Nebraska Public Media and KCUR described a mix of proposals and recently enacted laws aimed at expanding subsidy access, supporting providers and financing new child care capacity. Liz Arnold, who runs Just Like Mine Daycare in Lincoln, Nebraska, told The Midwest Newsroom that private-pay families are charged about $1,080 a month on average, while providers who accept subsidies face added paperwork, inspections and lower reimbursement. Tiffany Belford, a parent using the subsidy, said the administrative burden of keeping the benefit “felt like a job itself.” (nebraskapublicmedia.org) ### Why are lawmakers back on child care this summer? Nebraska Public Media and KCUR reported on Aug. 5 that lawmakers are trying to address two problems at once: parents say care is unaffordable, and providers say the subsidy system does not cover their full costs. Child Care Aware of America estimated the national average cost of child care at $13,184 annually per child in 2025, according to both reports. (kcur.org) Arnold told the outlets, “We’re not getting paid the cost of care,” describing the economics for providers who take subsidized families. The same stories said younger children are generally more expensive to care for and that family-based settings are often cheaper than centers. (nebraskapublicmedia.org) ### What did Nebraska actually do in 2026? Nebraska Gov. Jim Pillen took part in a ceremonial signing on June 16 for Legislative Bill 304, which permanently extended the higher income threshold for federal child care subsidies in the state. Nebraska Public Media reported the law kept eligibility at 185% of the federal poverty level, up from 130%, and removed an Oct. 1 sunset date. (nebraskapublicmedia.org) For a family of four, that threshold rose from about $42,000 to $61,050 a year, Nebraska Public Media reported in June. The same report said the measure passed 43-6 and that a fiscal note estimated more than 4,800 families had become newly eligible since the 2021 expansion. (nebraskapublicmedia.org) Wendy DeBoer, the Omaha state senator who made LB304 her priority bill, said in January, “If we fail to pass LB304, we will fail working families.” Bob Hallstrom, a Republican senator from Syracuse, said the bill was about “protecting the investment Nebraska has already made.” (nebraskapublicmedia.org) ### What is happening in Missouri? Missouri’s debate has been shaped by funding limits and payment rules rather than a completed expansion. KCUR, citing Missouri Independent reporting, said on July 21 that 7,389 children were on the state’s subsidy waiting list and that no children had been moved off the list since it began on March 1. (nebraskapublicmedia.org) The Missouri House rejected attempts on March 25 to restore $51.5 million in cuts to the subsidy program, KCUR reported. That report said the program helps cover care for more than 27,000 low-income and foster children statewide. Lucas Bond, a spokesperson for the Missouri Department of Elementary and Secondary Education, told Missouri Independent that the department was monitoring spending to determine whether money would become available to move children off the waitlist. (kcur.org) KCUR also reported that the state does not plan to shift providers to enrollment-based payments as previously expected. (kcur.org) ### Where does Kansas fit into the Midwest push? Kansas has already enacted one piece of its response. Gov. Laura Kelly signed Senate Bill 82 on April 27, expanding tax credits for employers that pay for child care services or contribute to community-based child care, according to the governor’s office and Kansas-based reporting. The governor’s office said businesses can claim up to $100,000 in non-refundable credits per tax year and carry over unused credits for up to three years. (kcur.org) Kelly said access to high-quality child care is essential for children, families and the state economy. ### What comes next for families and providers? Missouri’s next concrete test is whether state officials free up money to move children off the subsidy waitlist and revisit provider payment changes, according to KCUR’s July 21 report. (governor.ks.gov) Nebraska’s new subsidy threshold is already permanent under LB304, while Kansas’ expanded employer tax credits are now in effect under Senate Bill 82. (nebraskapublicmedia.org)