1.    The department shall pay child care costs required as a result of participation in allowable activities by the eligible caretaker in a temporary assistance for needy families household or diversion assistance household. The department shall pay a portion of child care costs required as a result of participation in allowable activities by the caretaker based on family size and countable income by applying a sliding fee schedule established under rules to be adopted by the department.

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2.    Subject to the availability of funding, the department may expand child care assistance to include an eligible caretaker who is attending a postsecondary education program in pursuit of a one-year, two-year, or four-year degree or certificate. If a child care assistance unit includes two parents, child care assistance may be paid with respect to any child only during times that both parents are engaged in an allowable activity.