Subsidized childcare: reimbursement rates: reporting

The law directs rates to reflect care costs rather than market prices and preserves existing provider-rate floors during the transition. It also requires added payments for nonstandard-hour care and eligible children needing inclusion supports.

What the law does ​

• Requires the State Department of Social Services, with the State Department of Education, to set single-structure childcare reimbursement rates using a cost-based alternative methodology consistent with the approved federal state plan.
• Requires rates to vary by region, care setting, applicable requirements, certified care hours, and specified infant, toddler, preschool, and school-age groups.
• Requires enhanced rates for nonstandard-hour care and per-child inclusion supports for eligible children with documented special needs.
• Requires base payments to reflect a child’s maximum certified hours with a provider, regardless of attendance.
• Extends quarterly implementation reports through July 1, 2028, and requires a transition timeline for the Joint Legislative Budget Committee chair if new rates are delayed.
• Allows implementation through county letters, childcare bulletins, or similar instructions until regulations are adopted.

Who it affects ​

• Subsidized childcare providers and contractors, including centers, family childcare homes, license-exempt providers, and alternative-payment programs.
• Families receiving subsidized childcare, especially those needing evening, overnight, weekend, or inclusion-supported care.
• Children eligible for inclusion payments based on specified education, intervention, disability, or medical-support plans.

Context ​

The urgency law took effect immediately to prevent further delays in moving to the new rate-setting system.