Child care subsidy exemption approved

Lawmakers passed a bill April 11 to provide an exemption under the Child Care Subsidy program for certain providers who care for their own children.

Current Nebraska law prohibits the state Department of Health and Human Services from providing a subsidy to an eligible child care provider who provides direct care for their own child.

LB856, sponsored by Omaha Sen. John Fredrickson, creates an exemption if an employer has attempted to make reasonable accommodations to ensure that a provider is not caring for their own child but such an accommodation cannot be made. An eligible child care provider also may enroll their child in a program other than their own to receive a subsidy.

LB856 passed on a vote of 38-7 and takes effect July 1, 2025.