Child care providers would use attendance-based subsidy claims, while statewide rules would set payment rates and regional rate limits.
Child care subsidy base rates would reach the 85th market percentile in 2026 and the 75th percentile in 2027, subject to bargaining and later survey standards.
Providers accepting subsidies could claim payments tied to authorized days even when children attend fewer days, using separate rules for full-, half-, and partial-day care.
Beginning July 1, 2026, subsidized providers would receive the base rate assigned to the region where they are located.
The state must set child care subsidy base rates at specified market percentiles. The rates apply to licensed or certified child care providers. Rates beginning July 1, 2026, must reach the 85th percentile of the most recent market survey published before May 20, 2025. Rates beginning July 1, 2027, must reach the 75th percentile of the market. The state and the exclusive representative for family child care providers must bargain over implementing the rate increase. Beginning with the survey published by June 1, 2028, a region’s results generally must meet minimum response-rate requirements to guide rate increases. The 85th-percentile rate applies beginning July 1, 2026. The 75th-percentile rate applies beginning July 1, 2027. The survey response rules begin with the survey published by June 1, 2028.
The department must adopt rules allowing providers to claim payments based on how many days a child attends in a month. The rules cover licensed or certified child care providers that accept state subsidy payments. For children attending 16 or more days, providers may claim all authorized days. For children attending nine to 15 days, providers may claim all authorized days or 15 days, whichever is fewer. For children attending one to eight days, providers may claim all authorized days or 11 days, whichever is fewer. Half-day and partial-day care must be paid using rates set in department rules. The department must adopt the initial rules by October 1, 2026. That temporary section expires July 1, 2027; a corresponding section takes effect on July 1, 2027.
The department may not pay a provider a base rate different from the rate for the provider’s subsidy region. The rule applies to licensed or certified child care providers receiving state subsidies. This rule begins July 1, 2026.
No hearings or votes scheduled.