Two bills would shield low‑income families and workers from scholarship freezes and reshape co‑pays to expand slots

Two related bills drew extended testimony on March 4 about Maryland’s childcare scholarship program and the enrollment freeze that has left thousands of families on wait lists.

HB 849 (sponsor on transcript: "Bernice American North") would codify existing MSDE exemptions to an enrollment freeze and add targeted exceptions to avoid harming the lowest‑income families. The sponsor proposed exempting families receiving TANF/TCA/SSI, children receiving SSI, siblings of already enrolled children, recently employed parents, and childcare workers themselves — citing that childcare workers’ low wages often make them scholarship‑eligible and that denying care to providers’ own children destabilizes the workforce.

HB 1321 (Delegate Julie Palakovich Carr) would add more structural reforms: it would require MSDE to prioritize families with the greatest financial need and children under three when enrolling from the wait list, identify scholarship applicants eligible for publicly funded pre‑K and connect them to openings, and redesign family co‑pays on a progressive scale (exempting families at or below the poverty line and capping co‑pays at a modest percentage of income). The sponsor said careful co‑pay modeling could generate funds to add thousands of scholarships; she cited an estimate that thoughtful co‑pay reform could produce roughly $36.5 million and fund about 2,600 additional scholarships annually.

Provider associations, unions (SEIU Local 500), MSCCA and nonprofit child‑care operators strongly supported both bills. They argued that an abrupt freeze can push childcare workers out of the field (they cited average wages for aides and lead teachers) and that targeted exemptions prevent provider attrition and family hardship. Witnesses urged simplicity in eligibility and clear re‑evaluation procedures so families can access care quickly.

Multiple witnesses also emphasized the need for improved coordination between MSDE and local education agencies to ensure families on the scholarship wait list learn about publicly funded pre‑K openings, avoiding capacity gaps or unexpected enrollment losses.

What happens next: Sponsors will continue to work with stakeholders on amendment language (co‑pay brackets, prioritization rules and re‑evaluation processes) before committee votes.