A diaper allowance would provide funds for purchasing diapers for parents or caregivers under a specific income limit. Similar policies exist in four states and have been proposed in several others. This session, legislation proposed by Senator Lakesia Collins would provide $70 per month per child under three years old for caregivers under the poverty line. An allowance is the gold standard for diaper policy – caregivers would be able to purchase diapers directly and the allowance would make a significant impact on their budget.

Many child care providers will turn away families if they do not supply diapers for their child. A 2023 study from the National Diaper Bank Network of caregivers experiencing diaper insecurity found one in four avoided child care due to a lack of diapers. Legislation to be carried by Representative Joyce Mason would require the Child Care Assistance Program (CCAP) to offer additional funding to providers specifically for the purchase of diapers, ensuring that a lack of diapers does not hinder a child’s access to early care and education in Illinois.

Just as states have used Medicaid waivers to mitigate homelessness and food insecurity, combatting diaper insecurity would continue Medicaid’s role in combatting the social determinants of health. States like Connecticut and California are exploring the possibility of offering diapers as a benefit through Medicaid programs.

Illinois taxes each package of diapers at 6.25 percent. 24 states have reduced or eliminated the diaper tax, including Florida, Iowa, Texas, and Ohio. Although a diaper tax reduction can benefit many families, it will only save families just under $80 per year.

By providing grants to community-based organizations, the state can expand their capacity to distribute diapers to those in need. While several states have included money in their budgets for diaper distribution, the challenge lies in meeting the high demand for diapers across the state.