Ohio lawmakers introduce bill to expand child care eligibility, address benefit cliffs
Ohio lawmakers target benefit cliffs with legislation expanding child care eligibility for working families earning above federal poverty line.
COLUMBUS, OHIO — Ohio lawmakers introduced legislation last week to expand publicly funded child care eligibility for low- and middle-income families while addressing concerns about benefit cliffs that can penalize workers for accepting raises.
House Representatives Desiree Tims and Crystal Lett introduced Ohio House Bill 827, which would broaden eligibility requirements for the Publicly Funded Child Care program. The legislation targets both families enrolling in the program for the first time and those seeking to maintain their benefits.
The bill specifically aims to expand child care access for families earning above the federal poverty line but still struggling to afford private child care costs.
Addressing the Benefits Cliff Problem
The proposed legislation tackles an issue known as benefits cliffs, where workers face financial disincentives when considering pay increases or promotions. These cliffs occur when small income increases result in the loss of valuable benefits, leaving families worse off financially despite earning more.
According to price research by Child Care Aware, a child care slot for an infant in a center costs nearly $14,000 annually on the private market. This creates a substantial financial burden for families who lose publicly funded child care benefits.
The bill’s supporters point to a scenario where a worker receiving a $5 hourly raise — worth approximately $10,000 annually for a full-time employee — could actually lose money if they simultaneously lose their child care benefits worth $14,000.
Policy Reform Strategy
House Bill 827 is part of ongoing efforts by policymakers to reduce work disincentives built into current benefit structures. Rather than maintaining strict income eligibility thresholds that create sudden benefit losses, the legislation aims to create more gradual transitions as families move from low to middle-income status.
The Publicly Funded Child Care program functions primarily as a work support initiative, designed to help working families maintain employment while ensuring their children receive quality care. Much of the policy debate surrounding the program centers on how effectively it supports working families and their ability to achieve financial independence.
Supporters argue the reforms address both the practical issue of benefit cliffs and the broader need for affordable child care among Ohio families. The legislation comes as policymakers continue seeking solutions to make benefit programs more supportive of career advancement and economic mobility.
The bill has been introduced in the Ohio General Assembly and will undergo the standard legislative review process, including committee hearings and potential floor votes in both chambers.
