This bill establishes the Great Start Affordability Scholarships program in Minnesota to assist families with the cost of child care and early learning. It aims to ensure that no Minnesota family pays more than 7% of their annual income on early care and learning for children from birth to kindergarten entry.

Key Provisions:

1. Transition of Families to the Scholarship Program

   • By July 1, 2028, families with children receiving early learning scholarships, child care assistance, or great start affordability scholarships will be transitioned into the new program.
   • The transition includes families using state-licensed, tribally licensed, or Head Start programs with quality ratings.

2. Family Eligibility

   • Families must have an income below 150% of the state median income.
   • Scholarships are available to children not currently receiving child care assistance or an early learning scholarship.
   • The scholarship remains available until the child is eligible for kindergarten.
   • Children from adjoining states may be eligible if they meet residency and screening requirements.

3. Program Eligibility & Use of Funds

   • Early care and learning programs must participate in the state’s quality rating system.
   • Scholarship funds must supplement, not replace, federal funding.

4. Scholarship Administration

   • Scholarships are awarded for 12 months, and families must renew them.
   • Families can request modifications if financial circumstances change.
   • The scholarship will be canceled if the child moves out of state, is unresponsive, or declines further participation.

5. Scholarship Amount & Payment System

   • The minimum scholarship amount is $100 per child per month, with amounts based on family income.
   • Programs receive payments based on enrollment rather than attendance.
   • Payments must begin by July 1, 2026.
   • A transfer process is created to help families switch programs without disruption.

6. Family Notifications & Transparency

   • Families will be informed about eligibility and application opportunities.
   • Programs must list the scholarship as state assistance on billing statements.

7. Funding & Administration

   • A Great Start Affordability Scholarship Account is created to manage funds.
   • Up to 7% of funds can be used for administration and monitoring.

This bill is intended to make early childhood education more accessible and affordable while streamlining funding and administrative processes.