HF 4005 Summary

• **Minimum wage increases phased in from $8-$15 per hour for large employers and $6.50-$13 per hour for small employers between August 1, 2014 and August 1, 2022, with annual inflation adjustments thereafter capped at 2.5 percent.

• **Child care assistance expanded to cover all low-income working families (not just MFIP participants) through the basic sliding fee program, with simplified eligibility and portability between counties.

• **Working family tax credit increased to 120 percent of the federal earned income tax credit, providing greater tax relief for low-income workers with and without qualifying children.

• **Minnesota Emergency Employment Development (MEED) program reestablished with $200 million appropriated in fiscal year 2017 to provide wage subsidies for eligible job applicants working for government, nonprofit, and private sector employers.

• **Maximum child care provider rates increased to 75th percentile of market rate survey (effective July 1, 2015) and child care assistance made available without waiting list limitations for families below specified income thresholds.