Nelson-Giral bill addressing child care subsidy cliff passes Pennsylvania House

State Rep. Eric Nelson - Pennsylvania 57th Legislative District
State Rep. Eric Nelson - Pennsylvania 57th Legislative District
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Legislation designed to improve access to child care for working families has advanced in the Pennsylvania House. The bill, sponsored by Rep. Eric Nelson (R-Westmoreland) and Rep. Jose Giral (D-Philadelphia), received bipartisan support during Monday’s vote.

Rep. Nelson stated, “For years, we have worked to implement a commonsense solution that enables lower-income parents to accept a raise AND keep essential child care. Our bill smooths what’s known as the ‘child care cliff,’ so working parents can earn above government’s set limit, contribute at a higher rate, and keep their child care for the rest of that benefit year.”

The proposed legislation builds on an existing pilot program and uses current funding levels. It allows parents who begin below poverty income limits but later earn slightly more to continue receiving child care benefits if they pay a higher copayment.

A provision in the 2023-24 state budget established a framework permitting families with increased incomes—up to 300% of federal poverty guidelines—to remain eligible for subsidized child care services as long as they pay larger copayments instead of being removed from the program.

Rep. Giral commented, “We want to help families earn their way out of poverty and ensure parents keep their high-quality child care. This is a win-win for families and businesses without costing Pennsylvanians more money.”

With approval from the House, House Bill 1108 now moves to the Pennsylvania Senate for consideration.



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