M E M O R A N D U M

TO: EES Program Administrators

FROM: Dr. Carla Whiteside-Hicks

DATE: March 19, 2026

SUBJECT: Implementation Instructions for Child Care Poverty Level Changes Effective May 1, 2026

Child Care

1. Poverty Level Changes - This year, the monthly gross income amounts will be updated on the Child Care Family Income and Share Schedule to reflect changes in the federal poverty guidelines and the state median income levels effective May 1, 2026. The tables will be updated overnight on March 21, 2026, and the changes are effective for the benefit month of May 2026. KEES will look at all active Child Care programs, recalculate their Family Plans with a Type of ‘FP’ and Change Reason of ‘Other Change Reason’, and run EDBC for the Come-Up Month. These actions mimic those of a caseworker–NOAs and Family Plans will go out based on EDBC results.
   
   With this adjustment to the poverty levels, income limits are increasing and family share deductions are also being adjusted. For households with income less than 185% of the federal poverty level for their household size, family share deductions will be set at 3% of the lowest net income in each income group. (This is the same formula that has been used since July 2021.) For households with income above 185% of the federal poverty level for their household size, family share deductions will be set at 5% of the lowest net income. These new family share deductions will be applied to all new child care plans beginning May 1, 2026, or after. Per KEESM 7541, family share deductions for ongoing cases will not increase during the current guaranteed eligibility period.
   
   Timeline of Events:
   
   
   • March 21, 2026: KEES will be updated with the table changes effective May 1, 2026. Note: The changes will not affect Family Share Deductions already attached to existing Family Plans. This will occur with the federal poverty guideline batch process. New plans written after this date will reflect the new amounts.
     
     
   • The weekend of March 28, 2026: For all active family plans, a batch will update family plan income limits, recalculate the family plan, run EDBC, and send appropriate notices. KEES will prevent family share deductions from increasing before the end of an existing guaranteed eligibility period.
     
     
   • Overridden Family Plans will be skipped for each month that is overridden. EDBC will run, and a NOA will be sent.
     
     
   • April 15, 2026: Regular Child Care EDBC – Run any Child Care program that has not yet had May EDBC run.