More Wisconsin families may soon receive help paying for child care, thanks to upcoming changes to Wisconsin Shares, the state’s child care subsidy program.
Starting July 1, the program’s income eligibility limit will increase. Also, some families will see smaller copays.
Here’s what you need to know about Wisconsin Shares and its upcoming changes:
How does Wisconsin Shares, the child care subsidy program, work?
Wisconsin Shares helps qualifying families by paying a monthly portion of their child care costs. The amount of the subsidy depends on a variety of factors, including the family’s income, location of the child care provider, their provider's price, ages of the child or children, family size and whether their child or children attend care part-time or full-time.
Some families are required to make a copayment, also based on a variety of factors. This gets deducted from their subsidy.
The remaining amount of the subsidy is loaded onto an electronic benefit transfer card for families to use solely to pay for child care at their authorized provider.
More:What to know about previous changes to Wisconsin Shares
Families using Wisconsin Shares are responsible for paying the difference between what their provider charges and what they receive on their EBT card.
Based on January to March 2024 data, the average statewide monthly subsidy payment, which includes families’ copayments, was $1,427. The average statewide copayment was $130.
Not all child care providers choose to accept Wisconsin Shares, or are eligible. To take Shares, a provider must be regulated and have at least a 2-star rating on YoungStar, the state’s optional child care quality rating system.
Wisconsin Shares may also help cover registration fees, under some circ*mstances.
Wisconsin Shares' income eligibility limit is changing
To participate in Wisconsin Shares, the family must:
- Live in Wisconsin and have a child under age 13 or a child with a disability under age 19
- Have parents/guardians participating in an approved activity, such as work or school
- Have children who are United States citizens or qualifying immigrants
- Meet income requirements
Starting July 1, the income eligibility limit will change from 185% of the federal poverty level — the exact dollar figure is based on family size — to 200% of the federal poverty level.
Under both the current and new rules, families in the program can stay in it if their income rises above the income limit — until its income reaches 85% of the state median income. The media income also varies depending on family size.
To see income eligibility, both the current and upcoming thresholds, for each family size, visit bit.ly/WisconsinSharesincome.
More:Takeaways from new report on Wisconsin child care: It’s expensive, hard to find and politicians can’t agree on what to do
Wisconsin Shares' copayment structure will also change
Once a family’s income exceeds 200% of the federal poverty level, its copayment increases by $1 for every $3 that it earns above that threshold. In July, the copayments will change, increasing by $1 for every $5 earned above this threshold.
Essentially, the change will reduce the loss of benefits families face as their income grows.
More:Struggling to afford child care in Wisconsin? Here's where to find help.
How much do these changes cost?
Wisconsin Shares is primarily funded by two federal sources: the Child Care and Development Fund and the Temporary Assistance for Needy Families block grant.
The state budget allocated $5 million of federal funding to expand the initial eligibility threshold, setting it equal to the phase out threshold, for the 2024-2025 budget year, which runs from July 1, 2024 through June 30, 2025. It also included $22 million of federal funding to change the copayment structure for 2024-2025.
Related:How do I check to see if my Wisconsin child care is safe?
More changes to come?
Because of a new federal rule, Wisconsin’s Department of Children and Families will need to seek statutory changes so participating families’ copayments don't exceed 7% of their gross income, DCF Communications Director Gina Paige said.
While the rule is technically in effect now, Paige said Wisconsin can submit a waiver request to get in compliance. Should the request be granted, the state will have until August 2026 to alter its policies.
Madison Lammert covers child care and early education across Wisconsin as a Report for America corps memberbased at The Appleton Post-Crescent.To contact her, emailmlammert@gannett.comor call 920-993-7108.Please consider supporting journalism that informs our democracy withatax-deductible gift to Report for Americaby visitingpostcrescent.com/RFA.
