Montana Best Beginnings Child Care Scholarships

26 Mar

Overview

The Best Beginnings Child Care Scholarship Program helps low-income Montana families pay for childcare while supporting parental choice through a range of eligible provider options. The program serves families with incomes up to 185% of the Federal Poverty Level, allowing parents to work or attend school while their children receive care in settings that best match their needs — from licensed childcare centers and family childcare homes to license-exempt care with trusted family, friends, and neighbors.

Why It Matters

Childcare in Montana costs about $11,700 annually for an infant in a center — up to 28% of household income for some families. This high cost puts quality childcare out of reach for many low-income families, making it difficult for parents to work or pursue education.

Best Beginnings addresses this problem by significantly reducing families' childcare expenses. By limiting family co-payments to no more than 9% of household income, the program makes childcare affordable across a range of provider types, helping parents join the workforce while ensuring they can choose care arrangements that align with their values, work schedules, and children's needs.

Quick Facts

Core Model: Childcare scholarships with sliding-scale family co-payments
Notable Feature: Family co-payments capped at 9% of household income
Launch Date: Program expanded in July 2023
Eligibility: Families with incomes up to 185% of Federal Poverty Level
Current Funding: $14 million for the 2024-2025 biennium ($7 million per year)
Participation Rates:
- Children Served: 6,500 in State Fiscal Year 2024
- New Children Added: Approximately 700 additional children gained eligibility through the 2023 expansion
Program Coverage: Available statewide across all Montana counties with multiple provider types

Background

The Best Beginnings Child Care Scholarship Program provides financial help to qualified low-income families while respecting their childcare preferences. Families can use scholarships with licensed childcare centers, family childcare homes, group homes, as well as license-exempt options like Family, Friend, and Neighbor (FFN) care and Relative Care Exempt (RCE) providers. This flexibility allows families to choose arrangements that best suit their cultural values, work schedules, and children's needs.

In 2023, Montana's Legislature passed House Bill 648, making significant improvements to the program. The bipartisan legislation expanded eligibility from 150% to 185% of the Federal Poverty Level and established a new payment structure capping family contribution at 9% of household income — a substantial reduction from the previous system where some families paid up to 20% of their income for childcare. These changes took effect July 1, 2023, making affordable childcare more accessible across various provider types for hundreds more Montana families.

How it Works

Best Beginnings operates through a straightforward scholarship model that supports parental choice:

Families apply for scholarships
Families select from multiple provider types, including licensed centers and homes or license-exempt FFN and RCE providers
Program covers a portion of childcare expenses
Families make monthly co-payments based on their income

The Montana Department of Public Health and Human Services administers the program through its Early Childhood and Family Support Division. After approval, payments go directly to the family's chosen eligible childcare provider—whether a licensed center, family home, or license-exempt relative or trusted individual.

Key Features

Expanded Eligibility: 2023 legislation increased the income threshold from 150% to 185% of Federal Poverty Level, allowing more families to qualify
Payment Cap: Family co-payments limited to 9% of household income, significantly reduced from the previous structure where some families paid up to 20% of their income
Sliding Fee Scale: Family co-payments are proportionate to income, ensuring affordability across different financial situations
Provider Diversity: Families can use scholarships with licensed childcare centers, family childcare homes, and license-exempt options like FFN and RCE care, supporting parental choice and ensuring access to care that aligns with family preferences
Quality Framework: The program balances formal standards for licensed providers with flexibility for families to choose trusted individuals from their own communities.

Policy Levers

Funding Allocation: Legislators provided $14 million for the 2024-2025 biennium ($7 million each year)
Income Eligibility: Expanded from 150% to 185% of the Federal Poverty Level through House Bill 648
Payment Structure: Established a cap on family co-payments at 9% of household income, down from previous higher rates
Provider Flexibility: Program design enables scholarships to be used across diverse childcare settings, including license-exempt care options that increase access and boost parental choice

Results

Best Beginnings has improved childcare access for Montana families:

Children Reached: About 6,500 children received assistance in State Fiscal Year 2024
Cost Reduction: Family co-payments reduced to a maximum of 9% of household income, down from previous rates where some families paid up to 20% of their income for childcare
Expanded Access: Program now serves approximately 700 additional children through the 2023 eligibility expansion from 150% to 185% of the Federal Poverty Level
Enhanced Choice: Families can select from a range of provider types — from licensed centers to trusted relatives — while receiving financial assistance