Oregon sets child care subsidy rules and studies insurance costs

The Early Learning Council must adopt rules for the state’s child care subsidy programs. These rules cover the Employment Related Day Care program and other subsidy programs run by the Department of Early Learning and Care. The rules must support access to diverse care and set separate eligibility grounds, including family income, work or education, and use of certain support services. Rules must provide for care that meets a child’s developmental and disability needs and helps the family with activities that support family well-being. Payments are based on enrollment and are due monthly by a date set in rule. Late payments generally include an extra nine percent, with exceptions set by rule. Taking available funds into account, rules must set family copayments on a sliding scale, capped at seven percent of household income. Federal rules govern when federal money pays for child care. The law takes effect June 5, 2026; no separate start date for the rules is stated.

The Department of Early Learning and Care must convene a work group and send its report to legislative committees. The group includes child care providers, insurance experts, and state agency representatives. Members must reflect Oregon’s geographic, racial, ethnic, and gender diversity. The group studies liability insurance costs and access for certified, registered, and recorded providers. It may also study effects on some providers usually exempt from state regulation. Its report must offer policy options to improve insurance access and reduce providers’ costs, and explore liability protections or other approaches. The report may recommend legislation. The group must report by November 1, 2027. The work group requirement ends January 2, 2029.