By Hola Iowa
The law takes effect July 1 and allows children of child care workers to qualify for Child Care Assistance, regardless of household income.
Starting Wednesday, July 1, Iowa will permanently extend access to the state Child Care Assistance program for child care workers, offering aid that can help cover care for their own children while they work in the field.
Gov. Kim Reynolds signed House File 2514 in April at Stepping Stones Child Development Center in Slater. The law makes permanent a pilot program created in 2023 to support families in which at least one parent works in child care.
The assistance becomes permanent July 1
House File 2514 establishes that children of child care workers in Iowa may qualify for the state Child Care Assistance program. The law takes effect July 1, 2026.
The state program already provided assistance to parents with young children when they were unavailable during the week because of work, school, vocational training or other state-approved work-related activities.
For most participants, Child Care Assistance has gross monthly income limits. The 2023 pilot program created an exception for families in which at least one parent works in child care for a minimum of 32 hours per week, regardless of household income.
Under the new law, that exception is no longer temporary.
Workers must meet employment requirements
The law applies to parents, guardians or custodians employed at a child care facility or child care home in Iowa. The workplace must have an agreement with the state to accept reimbursements through the Child Care Assistance program.
The worker must average at least 32 hours per week during the month in a position whose primary role is providing direct care to children. The worker also must be regularly counted in the minimum staff-to-child ratio established under state rules.
The law excludes substitutes and assistants in child care homes or child development homes. It also excludes owners of the child care center or home where their own child is enrolled.
Directors, co-directors or other administrative employees at a child care facility may qualify if they are regularly counted in the minimum staff-to-child ratio.
Reynolds says the measure helps retain staff
Reynolds said that since the pilot program began, the assistance has become one of the most effective ways to reduce staff turnover at child care centers and attract new workers to the field.
“This legislation makes a difference for all working families in Iowa,” Reynolds said when signing the law. “It offers child care workers with young children a reliable, affordable option to stay on the job and helps child care centers recruit and retain early childhood educators and staff.”
The governor also said that as more centers are able to expand their workforce, access to child care can grow and serve more working families across the state.
Workers say the assistance provides stability
Alura Gould, a Stepping Stones employee who uses the pilot program to cover child care costs for her own children, said the law will give child care workers across Iowa more stability.
“It allows us and our families to have stable income,” Gould said. “It allows the children we care for to continue to have the same teachers throughout the years that they’re familiar with and comfortable with. I’m extremely grateful for this and I know a lot of other people are, too.”
Elizabeth Umland, director of Stepping Stones Child Development Center, said the center also uses the state’s Continuum of Care grants to make it easier for families to access the Ballard School District’s statewide voluntary preschool program.
Umland said the center serves as a wraparound care option after preschool hours, with transportation between the center and the school program.
Another Early Childhood Iowa proposal remains pending
The Child Care Assistance law was sent to Reynolds with bipartisan support. Another proposal related to Early Childhood Iowa remained pending in the Legislature and included broader changes to funding for the state program.
Senate File 2462 and its House companion included language on the Child Care Assistance pilot program, along with changes to Early Childhood Iowa funding aimed at drawing down more federal dollars.
The proposal faced pushback from advocates and members of local Early Childhood Iowa boards, who questioned the shift of some funding authority and oversight to the Iowa Department of Health and Human Services.
Reynolds said the Early Childhood Iowa bill was “in a pretty good place,” though discussions were still continuing. The governor defended the intent to move home visitation services funding under HHS oversight to meet Family First Act requirements on evidence-based models.
House File 2514 takes effect July 1. The Iowa Department of Health and Human Services must submit an annual report to the Legislature on participation, spending, family income and the number of families and children served under this section of the program.
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