Nebraska child care assistance: DHHS Child Care Subsidy limits, 7% fee and public pre-K (2026)

What LB304 changed for October 2026

In 2021, LB485 raised the entry limit from 130% to 185% of the federal poverty level (FPL), but only through September 30, 2026 ⁠⁴. LB304, sponsored by Sen. Wendy DeBoer, removed that end date. It passed 43-6 on April 10, 2026 ⁠⁴. The amended statute took effect July 18, 2026, and the Legislature intends the Nebraska Health Care Cash Fund to pay for the higher limit from October 1, 2026 ⁠³. For families, nothing reverted.

Nebraska’s three income tests, effective October 1, 2026

Nebraska applies a different ceiling depending on where you are in the eligibility cycle. DHHS publishes these gross monthly figures, effective October 1, 2026 ⁠¹:

Scroll the table sideways to see every column.

DHHS’s table starts at a household of two; it publishes no one-person figure. Under the rules, a subsidy family always includes at least one adult and one child ⁠¹⁠⁵.

As a share of state median income. The 85% SMI column implies a full SMI of about $8,529 a month for a family of three, putting the entry limit at roughly 49% to 50% of SMI (our calculation ⁠¹). The FFY 2025-2027 CCDF plan put it at 54% using older figures ⁠⁷.

How the tiers work. At application, income must be at or below 185% FPL ⁠³⁠⁵. After approval, a raise does not end your case. If income goes above 185% FPL, you receive transitional child care for the rest of your eligibility period, unless income passes 85% of SMI ⁠³. At redetermination, you remain eligible for transitional care as long as income is below 200% FPL ⁠³. After 12 continuous months on the program, DHHS disregards 10% of your gross earned income at each redetermination ⁠³⁠⁵.

What counts. DHHS counts wages and unearned income such as child support, Social Security and unemployment insurance ⁠². Among 35 exclusions are ADC (Nebraska’s TANF) grants, tax refunds, student grants and loans, SNAP and housing assistance. Family net worth must not exceed $1,000,000 ⁠⁵.

The flat 7% family fee and the 2026 federal rule

Nebraska does not use a stepped sliding scale. A family with gross income over 100% FPL pays a monthly fee equal to 7% of gross income. That single fee covers all of the household’s children in the subsidy program. Families at or below 100% FPL pay no fee ⁠¹. You pay the fee directly to the provider, and the provider bills DHHS for the rest ⁠².

Because the fee is a flat 7%, it jumps from $0 to about $160 a month for a family of three just above 100% FPL ⁠¹.

Nebraska’s CCDF plan also waives fees for children in foster care and for families receiving Subsidized Adoption or Subsidized Guardianship ⁠⁷.

The federal 2026 rule “Restoring Flexibility in the CCDF,” published May 12, 2026 and effective July 13, 2026, rescinded the requirement that states cap co-payments at 7% of family income ⁠¹³. Nebraska’s fee was already set at the 7% level. DHHS’s guidelines effective October 1, 2026 still set the fee at 7% ⁠¹. Any future change would reach you as a notice of action, which the rules require whenever your fee changes ⁠⁶.

Qualifying activities: no hours minimum, but every parent needs one

Nebraska has no 20- or 25-hour weekly minimum. Instead, each parent or usual caretaker in the household must have an approved need for care. If there are two parents, both must be in a qualifying activity at the same time ⁠²⁠⁵. Approved needs under 392 NAC 2-013 are ⁠⁵:

• Employment that can lead toward economic self-sufficiency, plus reasonable travel time. Night-shift workers can get up to 8 hours of care a day for sleep.
• Employment First activities (the ADC work program).
• High school or equivalency classes, undergraduate degree or certificate programs, or English as a second language. Classes earn 2 hours of care per credit hour, or 1 hour per credit hour online. Study time is not covered.
• On-the-job training.
• Medical, mental health or substance-use treatment, or an incapacity approved by DHHS.
• Homelessness: up to 40 hours a week for three months while the family finds resources.

Job search does not qualify at initial application unless a federally funded workforce program requires it. If you lose a job while on the program, you get three months of care to look for work ⁠⁵. Authorized care is capped at 60 hours a week and 18 hours in any 24-hour period ⁠⁵.

Eligibility is redetermined every 12 to 18 months, and a temporary change in activity does not end care early ⁠⁵⁠⁶. Report within 10 days if income passes 85% of SMI, you move, your household changes, or a work or school change will last more than three months ⁠⁶.

Waiting lists and who is served first

Neither DHHS’s October 2026 subsidy pages nor its CCDF plan describe a statewide waiting list ⁠¹⁠²⁠⁷. The statute directs DHHS to provide assistance to families up to 185% FPL ⁠³. The approved CCDF plan lists four groups that are served without being placed on a waiting list: children with special needs, families with very low incomes, children experiencing homelessness, and families receiving or leaving ADC. Homeless children are also prioritized for enrollment ⁠⁷.

What can delay care is the provider. DHHS pays only enrolled providers ⁠⁶. A friend or relative who is not yet approved must complete the Prepare to Care orientation, pediatric first aid and CPR, and background checks. Approval may take up to six weeks, and payments are not backdated ⁠².

How Step Up to Quality affects your provider choice

You may choose any enrolled licensed center, licensed Family Child Care Home I or II, license-exempt home, or in-home caregiver ⁠⁵. In-home care is allowed only for a child with a verified special need, for care between 7 p.m. and 7 a.m. or on weekends, or for three or more children ⁠⁵.

Step Up to Quality, run jointly by the Department of Education and DHHS, rates programs from Step 1 to Step 5. Steps 3 to 5 require a rating review; Steps 4 and 5 also require minimum classroom observation scores. The program is voluntary unless a program receives more than $250,000 a year in subsidy payments ⁠⁹. State law lets DHHS pay tiered rates to programs at Step 3 or higher. Providers move to higher subsidy rates at Steps 3, 4 and 5, and centers receive one-time bonuses of $500 (Step 2) to $1,250 (Step 5) ⁠³⁠⁹.

DHHS pays providers by attendance in partial-day (under 5 hours) and full-day units, with up to five paid absent days a month ⁠⁶⁠⁸. In its 2023 rate FAQ, DHHS said rates were set at the 75th percentile of its market rate survey ⁠⁸. Providers may not charge you extra for items the rate already covers, such as food and materials ⁠⁶.

Applying through iServe and the ACCESSNebraska interview

1. Line up a provider

   Check ratings in the Step Up to Quality search. If your caregiver is not enrolled with DHHS, give their details to ACCESSNebraska early ⁠²⁠⁹.

2. Apply on iServe Nebraska

   Submit the application at iserve.nebraska.gov. The rules also let you contact a local office by phone, in writing, by fax or in person to arrange to apply ⁠²⁠⁵.

3. Complete the interview

   DHHS requires an interview, which is usually done by phone. If you cannot be reached within 30 days, the application is rejected ⁠²⁠⁵.

4. Send verification

   Send pay stubs or an employer statement (or your latest tax return if self-employed), school enrollment proof and your children’s ages. A Social Security number is not required ⁠⁵.

5. Wait for the decision

   DHHS denies an application if the decision is held up past 30 days. You have 60 days from the application date to finish without reapplying ⁠⁵.

6. Read your approval notice

   It shows your start date and fee. Care is not paid retroactively ⁠⁶.

7. Agree to immunizations and child support cooperation

   Your child must be immunized within 30 days of enrollment, unless there is a religious or medical exemption. You must cooperate with Child Support Enforcement unless you claim a family-violence exception ⁠⁵.

8. Appeal quickly if care is cut

   If DHHS sends advance notice of a reduction or termination, request a hearing in writing within 10 days of the mailing date. Care then continues until the hearing decision ⁠⁶.

For general subsidy questions, call DHHS’s Child Care Subsidy line at (402) 471-9152 ⁠¹⁴.

Public school preschool under Rule 11, not universal pre-K

Nebraska does not fund a universal, free pre-K entitlement. Its state-supported preschool is operated by more than 200 school districts and educational service units (ESUs) ⁠¹². These programs must be approved under Rule 11 (92 NAC 11), whose current text took effect March 18, 2020 ⁠¹¹.

• Age. Programs serve children from age 3 until kindergarten entrance age, which means turning 5 on or before July 31 of the school year ⁠¹¹.
• Hours. Each class must offer at least 12 instructional hours a week. Programs funded by state grants or counted for TEEOSA school aid must offer at least 450 hours a year ⁠¹¹.
• Cost. Districts may charge fees, but the fees cannot exceed actual cost. A program that charges fees must use a sliding scale and may waive fees for need ⁠¹¹. NDE does not publish a statewide tuition figure, so ask your district for its fee schedule.
• Who gets a seat. The Early Childhood Education Grant Program pays up to half of a program’s budget. After continuation grants, new grants go first to programs serving at-risk children who will enter kindergarten the next year ⁠¹⁰. Grant-funded programs are open to all children age 3 to kindergarten entrance age, with up to 30% of grant funds usable for children outside the at-risk priorities ⁠¹¹.

Enroll through your school district. A preschool seat and the Child Care Subsidy can be combined. State law lists DHHS child care assistance among the funding sources grant-funded programs must coordinate, which helps cover the hours before and after a part-day class ⁠¹⁰. For help with heating bills, see Nebraska energy and utility assistance. To compare other states, see the 50-state child care assistance comparison.