VA SB20

Requires the Virginia Department of Education to develop and implement a phased reduction model for the Child Care Subsidy Program to prevent families from losing assistance suddenly when their income increases beyond initial eligibility limits

Establishes incremental income tiers where assistance is reduced proportionally to income increases, with reductions capped at 10 percent per tier and the highest income covered not exceeding 125 percent of state median income

Limits the phase-out period to a maximum of 12 months, with redetermination required six months after entering the phased reduction and notification of service end date

Mandates the Board to promulgate regulations including an appeals process and adjustments for families with special circumstances such as disability or unexpected financial hardship

Requires annual reporting to the Governor and General Assembly beginning October 2027 on the number of children served within each tier, projected exits, and estimated state funding needs for the next two fiscal years