Families of four can earn up to $5,088 a month when first applying for Nebraska’s child care subsidy. New income guidelines took effect Oct. 1, and eligible households can apply through iServe.
Published Oct. 20, 2026.
By Hola Nebraska
LINCOLN, Nebraska. Nebraska families seeking help with child care costs have new income guidelines in effect as of Oct. 1, 2026. Under the state’s Child Care Subsidy Program, a household of four can earn up to $5,088 in gross monthly income when first applying for assistance.
The Nebraska Department of Health and Human Services (DHHS) also lists a higher limit of $5,500 a month for a four-person household during eligibility reviews or redeterminations, when assistance is being renewed.
The program helps qualifying families pay for child care while parents work, attend school or participate in other approved activities. Depending on household income, assistance may cover the full cost or require a monthly family payment.
The updated dollar amounts reflect the income guidelines effective Oct. 1. The state’s eligibility threshold remains at 185% of the federal poverty level for new applications, following legislation that prevented the expanded limits from expiring this fall.
Child care subsidy income limits start at $3,337 for a household of two
Nebraska uses household size and gross monthly income to determine financial eligibility. Gross income generally refers to income before taxes and other deductions.
The DHHS income guidelines effective Oct. 1, 2026 establish separate limits for families applying for the first time and families undergoing a review of their eligibility.
| Household size | Initial application: 185% FPL | Review or renewal: 200% FPL |
|---|---|---|
| 2 people | $3,337 | $3,607 |
| 3 people | $4,212 | $4,554 |
| 4 people | $5,088 | $5,500 |
| 5 people | $5,964 | $6,447 |
| 6 people | $6,839 | $7,394 |
| 7 people | $7,715 | $8,340 |
| 8 people | $8,591 | $9,287 |
All amounts are gross monthly household income limits. FPL means federal poverty level.
For example, a household of three has an initial income limit of $4,212 per month. A family of five has an initial limit of $5,964.
The higher review limits apply when DHHS evaluates continuing eligibility. Nebraska also has transitional assistance rules that can allow some families to remain covered as their earnings increase, subject to additional income limits and program requirements.
Meeting an income limit does not automatically qualify a family for assistance. DHHS also reviews employment or other approved activities, household circumstances and the child’s eligibility.
Families above the federal poverty level pay a 7% monthly fee
The Child Care Subsidy Program may cover the full cost of approved child care for some households. Other families pay a portion directly to their child care provider.
Under the current DHHS guidelines, families with gross income above 100% of the federal poverty level pay a monthly family fee equal to 7% of their gross household income for all children enrolled in the subsidy program.
For a household earning $4,000 a month in gross income, a 7% family fee would equal $280 per month.
Families with income below 100% of the federal poverty level are not subject to that fee under the published guidelines.
The fee is paid directly to the approved child care provider. The provider then bills DHHS for the remaining authorized amount.
The family’s income level, approved care arrangement and eligibility determination affect how the subsidy works in each case.
Parents must be working, studying or participating in another approved activity
Nebraska’s subsidy generally covers care for children age 12 and younger. If a child turns 13 during an approved period, assistance may continue through the end of that authorization.
Children with qualifying special needs may receive assistance up to age 19 when their circumstances require continued care.
DHHS lists several activities that can qualify parents for the program:
- Working.
- Participating in Employment First through the Aid to Dependent Children (ADC) program.
- Attending school or job training.
- Attending medical or therapy appointments for themselves or their children.
- Being unable to work because of an illness or injury documented by a physician.
In a two-parent household, both parents must be participating in qualifying activities at the same time.
DHHS considers earned income, including wages, and certain unearned income, such as child support, Social Security payments and unemployment benefits, when determining eligibility.
Applications begin through iServe and include a phone interview
Nebraska accepts Child Care Subsidy applications through iServe, its online benefits portal.
After applying, the family must complete a telephone interview as part of the eligibility process.
DHHS evaluates income and other program conditions before deciding whether assistance can be authorized. The application is not an automatic approval or a guarantee that all requested child care costs will be covered.
Application and assistance numbers:
- Statewide: 1-800-383-4278.
- Omaha: 402-595-1258.
- Lincoln: 402-323-3900.
Telephone assistance is available Monday through Friday, from 8 a.m. to 5 p.m.
The DHHS Child Care Subsidy information for parents also provides program requirements and provider guidance.
Families may choose a child care provider approved by DHHS
Families approved for the subsidy may choose a child care provider, but DHHS will pay only for care provided through an approved participant in the program.
Eligible arrangements may include licensed child care centers, licensed family child care homes, certain homes that do not require a license and care provided in the family’s own home, subject to program limits.
A family may also request approval for a provider who is not already enrolled, including a friend or relative who meets the requirements.
To begin that process, the parent provides the potential caregiver’s information to ACCESSNebraska. DHHS then contacts the provider about the approval requirements, including training, first aid and CPR certification, and background checks.
Provider approval can take up to six weeks. DHHS payments may begin once the provider is approved, but they are not backdated to the day the provider was referred.
This distinction matters for families arranging care before a provider has completed the approval process.
Nebraska law kept the expanded subsidy income limits in place
The 185% initial eligibility threshold is not a newly increased percentage for October 2026.
Nebraska expanded the program’s income eligibility in 2021, but that expansion was scheduled to expire Oct. 1, 2026.
Lawmakers approved Legislative Bill 304 in April 2026, removing the expiration date and preserving the expanded income eligibility rules.
The change means the state continues using 185% of the federal poverty level for initial eligibility and 200% for qualifying reviews and transitional assistance, rather than reverting to the lower thresholds previously scheduled to return.
DHHS updates the dollar amounts in its income tables as the applicable poverty guidelines change.
The child care subsidy is different from Nebraska’s tax credit
The Child Care Subsidy Program provides assistance toward eligible child care costs through approved providers. It is separate from Nebraska’s Child Care Refundable Tax Credit, which qualifying families claim through the state tax system.
The tax credit has different income limits, age requirements and application procedures. Its 2026 application cycle is scheduled to open in January 2027.
Related: Nebraska child care tax credit 2026: Who can get up to $2,000 per child.
The Child Care Subsidy Program’s updated income limits have been in effect since Oct. 1, 2026. Applications are handled through iServe, with phone assistance available weekdays from 8 a.m. to 5 p.m.
Stay informed about what’s happening in your community. Your source for stories that inspire — visit HolaNebraska.org for news, culture and community updates across Nebraska.