AZ HB2021

Expands child care assistance eligibility for custodial parents under 25 years old to pursue accredited educational activities including high school diplomas, vocational/technical certifications, or associate/bachelor's degrees (rather than just remedial education).

Requires eligible young parents pursuing education under the new provision to maintain a "C" average or obtain passing grades and have family income not exceeding 85% of state median income.

Streamlines waiting list placement for young parents seeking education-based child care assistance by allowing provisional placement based on minimal income verification before full eligibility determination is completed.

Maintains existing child care assistance provisions for families transitioning off cash assistance, those diverted from cash assistance, low-income families, families referred by Department of Child Safety, and special circumstance families experiencing domestic violence, homelessness, or medical/mental health conditions.

Continues income thresholds and phase-out provisions based on federal poverty levels and state median income, with child care assistance ending when family income exceeds 85% of state median income.