Alaska child care aid opens to families up to 105% of median income Dec. 1

Alaska families earning up to 105% of the state median income will qualify for child care assistance starting Dec. 1, up from 85%, under rules Health Commissioner Heidi Hedberg adopted Oct. 14.

The department proposed the changes July 30, and the adopted rules match that draft in substance.

For a family of four, the new income line is $11,257 a month, up from $9,113. Families earning 86% to 105% of median income fall into a new category called PASS V. A second new category covers children receiving protective services through the Office of Children's Services. The asset limit stays at $1 million.

The new rate schedule replaces the one set in December 2021. The full-time monthly infant rate at a licensed Anchorage center rises from $1,135 to $1,400, and in Mat-Su from $805 to $1,050. The infant rate now covers children through 18 months instead of 12, and children stay at the preschool rate through age 5, a year longer than before.

Family copays rise with income and top out at 7% of gross income, down from 9%. The cap applies to the whole family, not to each child. A family of four at the new income limit would pay $788 a month.

Hedberg's adoption order says, "This action is not expected to require an increased appropriation."

The department received 16 written comments, most supportive. The Denali Preschool and Learning Center asked whether there would be enough money for every eligible PASS V family and whether those families could face a waitlist. The department's response to comments does not say.

"Expanded eligibility will have limited practical value if families remain responsible for both a substantial contribution and a large difference between the State's approved rate and the provider's tuition," the center's co-director, Monica Magari, wrote.

Two Ketchikan parents asked the state to stop using the Market Rate Survey to set rates, saying it left Ketchikan far below other Southeast communities. Ketchikan's infant center rate rises from $840 to $1,111, compared with $1,400 in Juneau, Sitka and Petersburg. To requests like theirs, the department replied that the comment had been received.

The Legislature set the 105% limit in Senate Bill 95, signed June 24, 2025, on the condition that federal officials approve it by Jan. 1, 2026. A memo received March 11 noted that condition satisfied.