Colorado sets a 2028 deadline for family child care payment limits

The state must set a schedule limiting families' share of assisted child care costs to seven percent of gross monthly income. The limit covers families using the Colorado child care assistance program. Gross monthly income means monthly income before taxes and other deductions. The cap applies regardless of how many children receive care. If a federal rule sets a lower cap, the state must follow it immediately. Counties generally use one month of income but may use up to the most recent twelve months if one month does not accurately reflect expected income. The state must meet the seven-percent cap on or before August 1, 2028.

County child care assistance offices must pay providers weekly in advance based on each child's enrollment. The rules cover providers paid through county child care assistance offices. State payment rules must encourage regular attendance. Payments depend on available federal funding and state notice that the case management systems can handle the payment rules. Daily payment rates are allowed only for drop-in care, backup care, and care commonly paid daily in the private market. The payment requirements have a deadline of August 1, 2028.

State and county child care assistance offices must use grants and contracts to improve access to care for underserved groups. Covered groups include children in areas with limited care, infants and toddlers, children with disabilities, and families needing care outside traditional hours. The requirement depends on available federal funding. The deadline is August 1, 2028. The state must review each year whether access for these groups has improved.

The state must report how much child care assistance money it and each county spend in four categories. The annual report goes to lawmakers and separates administration, county overhead, program operations such as checking eligibility, and direct services. The spending breakdown is required in the report submitted November 1, 2026, and every annual report afterward.