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WES MOORE, Governor Ch. 595
Chapter 595
(House Bill 1321)
AN ACT concerning
Child Care Scholarship Program – Enrollment Application Process and Copays
– Alterations
FOR the purpose of prohibiting an enrollment freeze in the Child Care Scholarship
Program from applying to certain individuals; requiring the State Department of
Education to establish a waitlist for the Program under certain conditions; requiring
the Department to give priority for enrollment in the Program to certain individuals
on the waitlist; requiring the Department to identify, inform, and assist requiring
the State Department of Education to identify, inform, and assist Child Care
Scholarship Program applicants who qualify for enrollment in publicly funded
prekindergarten, Head Start, and Early Head Start subject to certain conditions;
repealing a process for presumptive eligibility in the Program; limiting copays for
certain individuals under the Program subject to certain conditions; requiring copays
for certain individuals under the Program subject to certain conditions; and
generally relating to the Child Care Scholarship Program.
BY repealing and reenacting, with amendments,
Article – Education
Section 9.5–111 and 9.5–113
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Education
Section 9.5–111(d)(4)
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
(As enacted by Section 1 of this Act)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Education
9.5–111.
(a) (1) In this section the following words have the meanings indicated.
(2) “Analysis” means the market rate survey or an alternative method
allowable under federal law.
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Ch. 595 2026 LAWS OF MARYLAND
(3) “Program” means the Child Care Scholarship Program.
(b) (1) Beginning in 2017, and every 2 years thereafter, the Department shall
conduct an analysis in order to formulate appropriate reimbursement rates for the
Program.
(2) The Department, before conducting the analysis, shall consult with:
(i) The Office of Child Care Advisory Council;
(ii) Child care resource and referral agencies;
(iii) Child care worker organizations; and
(iv) Any other appropriate entities.
(c) On or before September 1, 2017, and by September 1 every 2 years thereafter,
the Department shall report to the Joint Committee on Children, Youth, and Families, the
Senate Budget and Taxation Committee, and the House Appropriations Committee, in
accordance with § 2–1257 of the State Government Article, on:
(1) The methodology of the analysis required under subsection (b) of this
section;
(2) Cost estimates for raising the Program’s reimbursement rates to the
45th, 55th, 65th, and 75th percentile of child care providers in each of the State’s market
regions;
(3) The minimum base payment rate that is required for child care
providers to meet health, safety, quality, and staffing requirements in accordance with
federal law and the factors used to determine that rate;
(4) The rate adjustment that the Department will implement based on the
analysis;
(5) Any adjustments to Program eligibility or family copay amount that
will be implemented; and
(6) Any potential impacts on families and providers due to any adjustments
made to the Program.
(d) (1) The Governor shall include in the annual State budget an appropriation
from all fund sources for the Program that is not less than the total appropriation for the
Program in fiscal year 2018 or fiscal year 2019, whichever is greater.
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WES MOORE, Governor Ch. 595
(2) Except as provided in paragraph (3) of this subsection, the Department
may not make the following alterations to the Program in effect as of January 1, 2023:
(i) Reduce the reimbursement rates;
(ii) Reduce the income eligibility requirements; or
(iii) [Implement] SUBJECT TO SUBSECTION (E) OF THIS SECTION,
IMPLEMENT a freeze in Program enrollment.
(3) (i) The Department may alter the Program in effect as of January
1, 2023, by reducing the reimbursement rates, reducing the income eligibility
requirements, or implementing a freeze in Program enrollment, if:
1. The Department submits a notification to the Senate
Budget and Taxation Committee, the Senate Committee on Education, Energy, and the
Environment, the House Appropriations Committee, and the House Ways and Means
Committee, in accordance with § 2–1257 of the State Government Article, on the intended
Program alterations, including the reason for, and expected duration of, the proposed
actions; and
2. The Program alterations identified in the notification are
not implemented until the completion of the regular legislative session immediately
following the submission of the notification.
(ii) If the Board of Public Works approves budget reductions for the
Program under § 7–213 of the State Finance and Procurement Article for a certain fiscal
year, the Department may reduce the reimbursement rates, reduce the income eligibility
requirements, or implement a freeze in Program enrollment at any time during the fiscal
year.
(4) [The] EXCEPT AS PROVIDED IN § 9.5–113(D) OF THIS SUBTITLE,
THE Department may not increase the copayment levels of the Program in effect as of
January 1, 2024.
(E) (1) (I) A FREEZE IN PROGRAM ENROLLMENT MAY NOT APPLY TO:
1. A FAMILY OR AN INDIVIDUAL WHO IS ENROLLED IN
THE TEMPORARY CASH ASSISTANCE PROGRAM UNDER § 5–312 OF THE HUMAN
SERVICES ARTICLE;
2. A FAMILY OR AN INDIVIDUAL WHO IS ENROLLED IN
THE FEDERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM;
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Ch. 595 2026 LAWS OF MARYLAND
3. A CHILD WHO IS ENROLLED IN THE FEDERAL SOCIAL
SECURITY INCOME PROGRAM; AND
4. A CHILD WHO IS HOMELESS.
(II) AN INDIVIDUAL DESCRIBED UNDER SUBPARAGRAPH (I) OF
THIS PARAGRAPH SHALL OTHERWISE MEET THE CRITERIA FOR ENROLLMENT IN
THE PROGRAM.
(2) (I) IF THE DEPARTMENT ESTABLISHES A FREEZE IN PROGRAM
ENROLLMENT, THE DEPARTMENT SHALL ESTABLISH A WAITLIST FOR ELIGIBLE
INDIVIDUALS WHO APPLY TO THE PROGRAM AFTER THE FREEZE IS IN EFFECT.
(II) THE WAITLIST SHALL REMAIN IN EFFECT AS LONG AS
THERE ARE FEWER AVAILABLE AWARDS UNDER THE PROGRAM THAN ELIGIBLE
APPLICANTS FOR THE PROGRAM.
(III) THE WAITLIST SHALL GIVE PRIORITY FOR ENROLLMENT IN
THE PROGRAM TO QUALIFIED APPLICANTS WHO:
1. HAVE THE GREATEST FINANCIAL NEED, BASED ON
HOUSEHOLD INCOME; AND
2. APPLY TO ENROLL A CHILD UNDER THE AGE OF 3
YEARS.
(3) (I) IF THE DEPARTMENT ESTABLISHES A FREEZE IN PROGRAM
ENROLLMENT, THE DEPARTMENT SHALL IDENTIFY APPLICANTS TO THE PROGRAM
WHOSE CHILDREN QUALIFY FOR THE:
(I) THE PUBLICLY FUNDED PREKINDERGARTEN PROGRAM
UNDER TITLE 7, SUBTITLE 1A OF THIS ARTICLE; OR
(II) A HEAD START OR EARLY HEAD START PROGRAM.
(II) (2) THE DEPARTMENT SHALL INFORM AN APPLICANT
IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH (1) OF THIS
SUBSECTION ABOUT THE PUBLICLY FUNDED PREKINDERGARTEN PROGRAM, HEAD
START PROGRAM, OR EARLY HEAD START PROGRAM, INCLUDING BY PROVIDING
INFORMATION ON:
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WES MOORE, Governor Ch. 595
1. (I) AVAILABLE PREKINDERGARTEN SLOTS, HEAD
START, OR EARLY HEAD START PROGRAMS IN THE COUNTY IN WHICH THE
APPLICANT RESIDES;
2. (II) CONTACT INFORMATION FOR PRIVATE AND PUBLIC
PREKINDERGARTEN HOW TO CONTACT PROVIDERS WHO MAY HAVE AVAILABLE
PREKINDERGARTEN PROGRAM SLOTS; AND
3. (III) HOW TO APPLY FOR PUBLICLY FUNDED
PREKINDERGARTEN THE PROGRAMS.
(III) (3) ON REQUEST, THE DEPARTMENT SHALL ASSIST
PROVIDE ELIGIBLE FAMILIES IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH (1) OF THIS SUBSECTION WITH INFORMATION ON THE PUBLICLY
FUNDED PREKINDERGARTEN ENROLLMENT PROCESS PROCESSES.
(IV) (4) THE PROCESS FOR IDENTIFYING AND ASSISTING
ELIGIBLE PROGRAM APPLICANTS WHOSE CHILDREN QUALIFY FOR THE PUBLICLY
FUNDED PREKINDERGARTEN A PROGRAM SHALL CONTINUE AS LONG AS THE
WAITLIST IS IN EFFECT.
[(e)] (F) The Governor shall, from all fund sources, appropriate funds in the
annual State budget in an amount sufficient to raise the Program’s reimbursement rates
for each region to:
(1) For fiscal year 2020, not less than the 30th percentile of the most recent
market rate survey or its equivalent if an alternative methodology defined by the
Department is used; and
(2) For fiscal year 2021 and each fiscal year thereafter, not less than the
60th percentile of the most recent market rate survey or its equivalent if an alternative
methodology defined by the Department is used.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Education
9.5–113.
(a) In this section, “Program” means the Child Care Scholarship Program.
(b) The Department shall administer the Program in accordance with federal law.
(c) (1) The Department shall:
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Ch. 595 2026 LAWS OF MARYLAND
(i) Establish a process that meets the requirements of this
subsection for granting presumptive eligibility for a subsidy under the Program
(1) PROVIDE TO PROGRAM APPLICANTS INFORMATION ON
INCOME–BASED GOVERNMENT ASSISTANCE PROGRAMS AND TAX CREDITS FOR
WHICH THE APPLICANTS MAY BE ELIGIBLE; and
(ii) (2) Incorporate the framework of the Youth Transitioning
From Foster Placement to Successful Adulthood Program as established under § 9.5–113.2
of this subtitle.
(2) An individual shall attest that the individual meets the eligibility
requirements for a subsidy under the Program by completing and electronically submitting
a form provided by the Department, including a statement of the individual’s estimated
annual household income.
(3) The Department shall provide a subsidy under the Program to an
individual who submits a form under paragraph (2) of this subsection for a period:
(i) Beginning on the day on which the individual submits the form;
and
(ii) Ending:
1. If the individual does not fill out an application within 15
days in accordance with paragraph (4) of this subsection, 60 days after the date on which
the individual submits the form under paragraph (2) of this subsection; or
2. If the Department determines that the individual does not
qualify for a subsidy under the Program after reviewing the individual’s application
submitted in accordance with paragraph (4) of this subsection, the later of:
A. 60 days after the date on which the individual submits the
form under paragraph (2) of this subsection; or
B. The date on which the Department makes the
determination.
(4) To continue to receive a subsidy under the Program, an individual who
submits a form under paragraph (2) of this subsection shall submit an application for a
subsidy under the Program within 15 days after the date on which the individual submits
the form under paragraph (2) of this subsection.
(5) The Department or the Comptroller may not seek reimbursement or
repayment of a subsidy provided to an individual under paragraph (3) of this subsection if
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WES MOORE, Governor Ch. 595
the Department determines the individual does not qualify for a subsidy under the Program
under paragraph (3)(ii)2 of this subsection, except for suspected fraud.
(6) (i) In this paragraph, “Fund” means the Child Care Scholarship
Program Presumptive Eligibility Fund.
(ii) There is a Child Care Scholarship Program Presumptive
Eligibility Fund.
(iii) The Department shall administer the Fund.
(iv) 1. The Fund is a special, nonlapsing fund that is not subject
to § 7–302 of the State Finance and Procurement Article.
2. The State Treasurer shall hold the Fund separately, and
the Comptroller shall account for the Fund.
(v) The Fund consists of:
1. Money appropriated in the State budget to the Fund;
2. Reimbursements made in accordance with subparagraph
(viii) of this paragraph; and
3. Any other money from any other source accepted for the
benefit of the Fund.
(vi) The Fund may be used only to award a subsidy under the
Program in an amount sufficient to provide child care for an individual who is granted
presumptive eligibility until:
1. The individual either fails to complete the full application
within 15 days or is found ineligible for a subsidy under the Program and the time period
described under paragraph (3) of this subsection lapses; or
2. The individual is found eligible to participate in the
Program.
(vii) For fiscal year 2024 and each fiscal year thereafter, the Governor
shall include in the annual budget bill an appropriation to the Fund at least equal to the
amount recommended by the Department in the study conducted in accordance with
Section 3 of Chapters 525 and 526 of the Acts of the General Assembly of 2022 that is
necessary to provide payment of the subsidy amount for which an individual who is
presumptively eligible qualifies.
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Ch. 595 2026 LAWS OF MARYLAND
(viii) If an individual is found eligible to participate in the Program,
federal and matching State funds available under the federal Child Care Development
Fund shall be used to reimburse the Fund for any expenditures made in accordance with
subparagraph (vi) of this paragraph.
(ix) 1. The State Treasurer shall invest the money of the Fund in
the same manner as other State money may be invested.
2. Any interest earnings of the Fund shall be credited to the
General Fund of the State.
(d) (1) The Department shall award a scholarship under the Program in an
amount sufficient to ensure that an individual will not be required to pay a copay for child
care if the individual provides proof, as determined by the Department, of:
[(1)] (i) 1. Participation in one of the following programs:
[1.] A. Federal Special Supplemental Food Program for
Women, Infants, and Children;
[2.] B. Federal Supplemental Nutrition Assistance
Program;
[3.] C. Federal Housing Act Housing Choice Voucher
Program;
[4.] D. Supplemental Security Income benefits; or
[5.] E. Temporary cash assistance; and
[(ii)] 2. Employment or enrollment in an education or career
training program; or
[(2)] (II) Participation in the Youth Transitioning From Foster Placement
to Successful Adulthood Program established under § 9.5–113.2 of this subtitle.
(2) THE DEPARTMENT SHALL AWARD A SCHOLARSHIP UNDER THE
PROGRAM IN AN AMOUNT SUFFICIENT TO ENSURE THAT AN INDIVIDUAL WHO HAS
AN ANNUAL HOUSEHOLD INCOME OF NOT MORE THAN 50% OF THE REGIONAL
MEDIAN INCOME WHERE THE INDIVIDUAL RESIDES AT OR BELOW THE FEDERAL
POVERTY LINE IS NOT REQUIRED TO PAY A COPAY FOR CHILD CARE.
(3) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
DEPARTMENT MAY AWARD A SCHOLARSHIP UNDER THE PROGRAM IN AN AMOUNT
THAT RESULTS IN AN INDIVIDUAL PAYING A COPAY IF THE INDIVIDUAL’S ANNUAL
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WES MOORE, Governor Ch. 595
INCOME IS MORE THAN 50% OF THE REGIONAL MEDIAN INCOME WHERE THE
INDIVIDUAL RESIDES.
(II) THE DEPARTMENT MAY NOT AWARD A SCHOLARSHIP
UNDER THE PROGRAM IN AN AMOUNT THAT RESULTS IN AN INDIVIDUAL PAYING:
1. IF THE INDIVIDUAL HAS AN ANNUAL INCOME OF NOT
MORE THAN 65% OF THE REGIONAL MEDIAN INCOME WHERE THE INDIVIDUAL
RESIDES, 3% OR MORE OF THE INDIVIDUAL’S ANNUAL INCOME AS A COPAY; OR
2. IF THE INDIVIDUAL HAS AN ANNUAL INCOME OF MORE
THAN 65% OF THE REGIONAL MEDIAN INCOME WHERE THE INDIVIDUAL RESIDES,
7% OR MORE OF THE INDIVIDUAL’S ANNUAL INCOME AS A COPAY.
(3) THE DEPARTMENT MAY AWARD PARTIAL SCHOLARSHIPS UNDER
THE PROGRAM THROUGH A SLIDING FEE SCALE FOR COPAYMENTS THAT:
(I) APPLIES TO AN INDIVIDUAL WHO:
1. HAS AN ANNUAL HOUSEHOLD INCOME ABOVE THE
FEDERAL POVERTY LINE; AND
2. IS NOT DESCRIBED UNDER PARAGRAPH (1)(I) OF THIS
SUBSECTION;
(II) IS BASED ON AN INDIVIDUAL’S ANNUAL HOUSEHOLD
INCOME ABOVE THE FEDERAL POVERTY LINE;
(III) REQUIRES AN INDIVIDUAL TO PROVIDE AN INCREASED
PERCENTAGE OF THE INDIVIDUAL’S ANNUAL HOUSEHOLD INCOME AS A COPAY AS
THE INDIVIDUAL’S INCOME INCREASES;
(IV) INCREASES COPAY PERCENTAGES GRADUALLY BETWEEN
HOUSEHOLD INCOME CATEGORIES, CULMINATING IN A MAXIMUM COPAY NOT
EXCEEDING 7% OF AN INDIVIDUAL’S ANNUAL HOUSEHOLD INCOME FOR AN
INDIVIDUAL WITH THE HIGHEST INCOME CATEGORY UNDER THE PROGRAM;
(V) INCLUDES A SUFFICIENT NUMBER OF HOUSEHOLD INCOME
CATEGORIES TO MINIMIZE SIGNIFICANT INCREASES IN COPAY AMOUNTS FOR AN
INDIVIDUAL WHO MOVES FROM ONE HOUSEHOLD INCOME CATEGORY TO ANOTHER;
AND
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Ch. 595 2026 LAWS OF MARYLAND
(VI) REQUIRES A COPAY FOR EACH CHILD IN A FAMILY
RECEIVING A PARTIAL SCHOLARSHIP, BUT REQUIRES A LOWER COPAY AMOUNT FOR
EACH SUBSEQUENT CHILD.
(4) (I) SUBJECT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE
DEPARTMENT MAY SET A MINIMUM COPAY AMOUNT FOR A PARTIAL SCHOLARSHIP
AWARD UNDER THE PROGRAM.
(II) A MINIMUM COPAY AMOUNT MAY NOT BE MORE THAN $10
EACH MONTH.
(e) An individual is eligible to continue to receive a scholarship under the
Program:
(1) For at least 90 days in a year if the individual is unemployed and
seeking employment; and
(2) If the individual meets any other eligibility criteria determined by the
Department.
(f) The Department may not require an individual to pursue or receive child
support payments or apply for services from a child support agency to be eligible for a
scholarship under the Program.
(g) (1) The Department shall notify the Comptroller within 10 days after the
date on which the Department receives an invoice from a child care provider.
(2) The Comptroller shall pay a child care provider within 5 days after the
date on which the Comptroller receives a notice under paragraph (1) of this subsection.
(h) The Department shall adopt regulations to implement the provisions of this
section.
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Education
9.5–111.
(d) (4) [Except as provided in § 9.5–113(d) of this subtitle, the] THE
Department may not increase the copayment levels of the Program in effect as of January
1, 2024.
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WES MOORE, Governor Ch. 595
SECTION 4. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take
effect July 1, 2028.
SECTION 2. AND BE IT FURTHER ENACTED, That, in order to fulfill the
requirement to share information about publicly funded prekindergarten slots with
applicants to the Child Care Scholarship Program under § 9.5–111(e) of the Education
Article, as enacted by Section 1 of this Act, the State Department of Education:
(1) may, before the date on which the Department implements the Early
Childhood Pre–K Enrollment System for publicly funded prekindergarten, provide
information on available publicly funded prekindergarten slots in the county in which the
applicant resides as of the most recent enrollment count; and
(2) shall, beginning on the date the Department implements the Early
Childhood Pre–K Enrollment System for publicly funded prekindergarten, provide
up–to–date information on available publicly funded prekindergarten slots in the county in
which the applicant resides.
SECTION 3. AND BE IT FURTHER ENACTED, That:
(a) If the State Department of Education implements a system of copayments for
the Child Care Scholarship Program in accordance with § 9.5–113(d) of the Education
Article, as enacted by Section 1 of this Act, the Department shall provide ample notice of
incoming copayments, notifying current scholarship recipients and the child care providers
that accept the scholarships multiple times, beginning with a first notice at least 90 days
before a system of copayments is implemented.
(b) (1) On or before December 1, 2027, the State Department of Education
shall report to the General Assembly, in accordance with § 2–1257 of the State Government
Article, on a system of copayments for the Child Care Scholarship Program adopted in
accordance with § 9.5–113(d) of the Education Article, as enacted by Section 1 of this Act.
(2) The report shall include information on:
(i) income bands used to generate copayments;
(ii) the number of scholarships in each income band; and
(iii) the average copayment in each income band.
SECTION 4. AND BE IT FURTHER ENACTED, That:
(a) The State Department of Education shall monitor the waitlist for the Child
Care Scholarship Program in effect on July 1, 2026.
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Ch. 595 2026 LAWS OF MARYLAND
(b) (1) If the Department determines that there will no longer be any
applicants on the waitlist within 6 months, the Department shall report to the General
Assembly, in accordance with § 2–1257 of the State Government Article, on:
(i) the possibility of the waitlist ending; and
(ii) whether the Child Care Scholarship Program should include a
process that allows applicants to the program to enroll through presumptive eligibility.
(2) In issuing its report, the Department shall review the presumptive
eligibility process in place before July 1, 2026, and consider possible changes to make the
program more effective.
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section
4 of this Act, this Act shall take effect July 1, 2026. Section 2 of this Act shall remain
effective for a period of 2 years and, at the end of June 30, 2028, Section 2 of this Act, with
no further action required by the General Assembly, shall be abrogated and of no further
force and effect, contingent on the taking effect of Chapter 594 of the Acts of the General
Assembly of 2026, and if Chapter 594 does not take effect, this Act, with no further action
required by the General Assembly, shall be null and void.
Approved by the Governor, May 26, 2026.
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