CaliforniaCalifornia sets subsidized childcare rates by care needs
California’s enacted law directs the department to set subsidized childcare rates using care hours and children’s needs, if the requirements fit the federally approved state plan.
What it does
When it sets new rates, the department must account for regions, care settings, care hours, and children’s ages. It must include extra rates for nonstandard hours and eligible children with special needs, if the requirements fit the federally approved state plan.
If the new rates do not take effect on July 1, 2025, the department must give its expected transition timeline to the chair of the Joint Legislative Budget Committee.
The department must keep sending quarterly updates on implementation of the new rates through July 1, 2028, inclusive.
Argument forProviders may receive rates that account for local costs, care hours, and children’s needs, including extra payments for nonstandard hours and eligible children.
Argument againstProviders may need families to document a child’s qualifying care plan before claiming an extra inclusion payment, which could add paperwork for some families.
More detail
When setting new rates, the department must vary base rates by region, care setting, rules for that setting, care hours, and children’s ages. The rates cover subsidized childcare programs included in the state’s single-rate structure. Age groups include children under two, children age two, preschool-age children not yet in first grade, and children in first grade or higher who are at least five. These requirements apply only to the extent they are consistent with the federally approved Child Care and Development Fund state plan. A child’s family file must document at least one qualifying current or active plan for an enhanced inclusion rate; the plan may be unsigned if the family did not consent to services. Other enhanced rates may be added through the annual budget process. These requirements apply when the department establishes new rates using the single-rate structure.
If the new rates do not take effect on July 1, 2025, the department must give the committee chair its expected transition timeline. The timeline covers the move from rates in effect on July 1, 2025, to the new rates. This duty applies only if the new rates do not take effect on July 1, 2025. The reporting duty is triggered if the new rates do not take effect on July 1, 2025.
The department must continue quarterly updates on implementation of the new rates. The department sends updates to the Assembly and Senate budget committees and the Legislative Analyst’s Office. Updates run from October 1, 2024, through July 1, 2028, inclusive.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State - Chapter 567, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6965.).Major
- Vote recorded AB 1981 Aguiar-Curry Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB1981 Aguiar-Curry et al. By Reyes Urgency Clause. Result: pass.Upper
- Aug 30Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).Passed Senate
- Aug 28Read second time. Ordered to third reading.Minor
- Aug 27Read third time and amended. Ordered to second reading.Major
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Jun 29In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 16From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 15). Re-referred to Com. on APPR.Minor
- Jun 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 10From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HUMAN S.Major
- May 6Referred to Com. on HUMAN S.Minor
- Apr 23In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1981 Aguiar-Curry Consent Calendar Second Day. Result: pass.Lower
- Apr 23Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 4795.).Passed Assembly
- Apr 16Read second time. Ordered to Consent Calendar.Minor
- Apr 15From committee: Do pass. To Consent Calendar. (Ayes 13. Noes 0.) (April 15).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Apr 6Re-referred to Com. on APPR.Minor
- Mar 26Read second time and amended.Major
- Mar 25From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (March 24).Major
- Mar 24
- Vote recorded Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Mar 23Re-referred to Com. on HUM. S.Minor
- Mar 20From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended.Major
- Mar 2Referred to Com. on HUM. S.Minor
- Feb 14From printer. May be heard in committee March 16.
- Feb 13Read first time. To print.Introduced
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