Celebrating New Legislation That Will Improve Economic Security For Moms, Kids, and Families

May 12, 2023 by Megan Condon in Blog, Economic Opportunity

As we celebrate Mother’s Day, we’re also celebrating newly passed legislation that will improve the quality of life for children and families across the state. The 2023 Maryland General Assembly session saw the passage of several key bills that will support parents and, in turn improve the well-being of children and the future of our communities. Not only did the legislature pass the Family Prosperity Act and the Fair Wage Act, improving economic security for working families, but also established new provisions for affordable childcare and took steps to address childhood hunger.

Economic Security

Tax credits for working families, like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), have been shown to be effective in preventing children from growing up in poverty and assisting families in paying for the necessities of life. Maryland made significant strides in assisting working families in 2021 by establishing a small CTC, extending the state EITC to thousands of low-income employees who were previously ineligible, and raising the credit’s value for all recipients. The Family Prosperity Act will boost financial stability for roughly 34,000 children whose families are now eligible for the state Child Tax Credit and more than 400,000 low- and moderate-income Marylanders by permanently extending the state EITC increases.

Another benefit is that the Child Tax Credit in House Bill 547 does not exclude kids from low-income families or kids without a Social Security number, unlike the federal credit. Each year, it will provide $17 million to thousands of families with young children. This increase in income could result in easier access to healthy meals or educational reading material, or it might even make it possible to keep the heat or power on for some families.

Lawmakers also took important steps to strengthen the state’s paid family and medical leave program, which is particularly important for new parents.  In 2022, the General Assembly took the first step to ensure Maryland workers can afford to take time off to care for a new child or a family member dealing with a serious illness by creating a new statewide paid family and medical leave program. Once fully implemented, the Time to Care Act will bring significant and wide-ranging benefits to workers and families, including improved infant health and reduced employee turnover. Being able to take care of your loved ones without having to worry about the financial burden that comes along with it is something that every Marylander deserves.

This year’s legislation, Senate Bill 828, makes several generally minor modifications to the Time to Care Act of 2022 to ensure effective implementation. One modification is the requirement of equal payroll contributions from employers and employees. This would further avoid placing disproportionate responsibilities on workers with limited ability to pay. The legislation also adjusted implementation timelines, with benefits beginning in January 2026. The Time to Care Act of 2022 was a huge win for workers and families and effective implementation is vital to see the true success of this important legislation.

Addressing Childhood Hunger

No child should miss the most important meal of the day, breakfast. Children who eat breakfast are more likely to do well in school, among other benefits. Maryland Meals for Achievement (MMFA) supports schools with at least 40% of students who are eligible for free or reduced-price meals by ensuring that all students have enough time to eat a nutritious breakfast. Many schools who are qualified and submit applications to participate in the program, however, were previously unable to do so due to budget restrictions. The passage of Senate Bill 559 guarantees that MMFA receives sufficient funds each year to serve all eligible schools and ensure that no child is left hungry and is able to thrive in their everyday lives.

Strengthening the Child Care Scholarship

By helping cover the high expense of childcare, the Child Care Scholarship (CSS) helps parents to join and stay in the workforce and makes accredited early education programs available to parents and kids. Senate Bill 350 ensures that recent improvements to Maryland’s Child Care Scholarship Program remain permanent and enable more working families to afford childcare.

In 2022, using federal relief funds, Maryland increased the rate it will pay for child care to be more aligned with market rates, expanded income eligibility to allow more families to access the scholarship program, and reduced or eliminated co-pays for families. This year’s legislation permanently sets those standards as the baseline and prohibits the Maryland State Department of Education, which administers the program, from reducing subsidies, creating waiting lists, or placing other limits on parents’ ability to access the program without review from the General Assembly.