§ 142E.15 — Sliding Fee Scale
Plain-Language Summary
This section establishes the sliding fee scale that determines how much families must pay for child care assistance based on their income. Lower-income families pay a smaller percentage of their income toward child care costs, while higher-income families pay more. The state pays the difference between the family co-payment and the actual cost of care up to the maximum rate.
142E.15 SLIDING FEE SCALE.
§
Subdivision 1.Fee schedule.
All changes to parent fees must be implemented on the first Monday of the service period following the effective date of the change.
PARENT FEE SCHEDULE. The parent fee schedule is as follows, except as noted in subdivision 2:
| Income Range (as a percent of the state median income, except for the first tier and at the start of the second tier) | Co-payment (as a percentage of adjusted gross income) |
|---|---|
| 0-99.99% of federal poverty guidelines | $0/biweekly |
| 100.00% of federal poverty guidelines-27.99% | 2.6% |
| 28.00-30.99% | 2.6% |
| 31.00-33.99% | 2.6% |
| 34.00-36.99% | 2.9% |
| 37.00-39.99% | 3.2% |
| 40.00-42.99% | 3.8% |
| 43.00-45.99% | 4.4% |
| 46.00-48.99% | 5.0% |
| 49.00-51.99% | 5.6% |
| 52.00-54.99% | 6.2% |
| 55.00-57.99% | 6.8% |
| 58.00-60.99% | 6.9% |
| 61.00-63.99% | 6.9% |
| 64.00-67.00% | 6.9% |
| Greater than 67.00% | ineligible |
A family’s biweekly co-payment fee is the fixed percentage established for the income range multiplied by the lowest possible income within that income range.
[See Note.] §
Subd. 2.Parent fee.
A family must be assessed a parent fee for each service period. A family’s parent fee must be a fixed percentage of its annual gross income. Parent fees must apply to families eligible for child care assistance under sections 142E.04 and 142E.08. Income must be as defined in section 142E.01, subdivision 18. The fixed percentage is based on the relationship of the family’s annual gross income to 100 percent of the annual state median income. Parent fees must begin at 75 percent of the poverty level. The minimum parent fees for families between 75 percent and 100 percent of poverty level must be $2 per biweekly period. Parent fees must provide for graduated movement to full payment. At initial application, the parent fee is established for the family’s 12-month eligibility period. At redetermination, if the family remains eligible, the parent fee is recalculated and is established for the next 12-month eligibility period. A parent fee shall not increase during the 12-month eligibility period. Payment of part or all of a family’s parent fee directly to the family’s child care provider on behalf of the family by a source other than the family shall not affect the family’s eligibility for child care assistance, and the amount paid shall be excluded from the family’s income. Child care providers who accept third-party payments must maintain family specific documentation of payment source, amount, and time period covered by the payment.
History:
1Sp1985 c 14 art 9 s 72; 1988 c 689 art 2 s 229; 1997 c 162 art 4 s 37; 1999 c 205 art 1 s 33; art 5 s 21; 1Sp2003 c 14 art 9 s 20; 2004 c 288 art 4 s 15; 2006 c 191 s 1; 2007 c 147 art 2 s 9; 2008 c 361 art 3 s 4; 2009 c 175 art 1 s 4; 2012 c 216 art 7 s 2,3; 1Sp2017 c 6 art 7 s 20; 2024 c 80 art 5 s 7; 1Sp2025 c 3 art 13 s 10
**NOTE: **The amendment to subdivision 1 by Laws 2025, First Special Session chapter 3, article 13, section 10, is effective October 9, 2028. Laws 2025, First Special Session chapter 3, article 13, section 10, the effective date.
History: History: 1Sp1985 c 14 art 9 s 72; 1988 c 689 art 2 s 229; 1997 c 162 art 4 s 37; 1999 c 205 art 1 s 33; art 5 s 21; 1Sp2003 c 14 art 9 s 20; 2004 c 288 art 4 s 15; 2006 c 191 s 1; 2007 c 147 art 2 s 9; 2008 c 361 art 3 s 4; 2009 c 175 art 1 s 4; 2012 c 216 art 7 s 2,3; 1Sp2017 c 6 art 7 s 20; 2024 c 80 art 5 s 7; 1Sp2025 c 3 art 13 s 10