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The Washington State Institute for Public Policy was directed in EHB 3901 to conduct a study of reasonable, affordable child care co-payments that are realistic for low-income families. The Institute was also asked to review the child care co-payment schedules of other jurisdictions and to model the economic impact of child care co-payments on low-income families. Washington State's new child care co-payment schedule became effective on November 1,1997. The new schedule is the result of the same legislation that created WorkFirst, the state's response to the Personal Responsibility and Work Opportunity Act (PL104-193).The employment emphasis of WorkFirst makes the state's child care subsidy program a critical element of welfare reform.