Under existing law, the state reimburses recipients of state childcare subsidies, including licensed childcare centers, licensed family childcare homes, and license-exempt providers, based on the maximum authorized or certified hours of care listed in a family’s eligibility paperwork, rather than a child’s actual attendance. Originally adopted during the COVID-19 emergency to stabilize provider income, this approach was set to expire in June 2026. SB 151 extends it through July 1, 2028.
The bill also makes permanent the “cost of care plus” monthly rate add-ons for subsidized family childcare providers and centers. These supplemental per-child payments, which vary by region and provider type, will now continue indefinitely.
Under SB 151, providers will also receive a one-time stabilization payment for each subsidized child enrolled in April 2025: $431 per child for licensed family childcare homes and centers, and $300 per child for license-exempt providers. SB 151 appropriates $157.8 million from the General Fund to cover these stabilization payments. Finally, the bill guarantees continued funding for the CCPU Training Partnership Fund, the Workers Health Care Fund, and the Retirement Trust, with annual contributions through July 1, 2028. It also approves the August 7, 2025, agreement between the State and CCPU, giving effect to provisions requiring legislative approval.
(SB 151 amends 8245.5 of the Education Code and sections 10227.5, 10277.1, 10277.2, 10277.3, 10277.4, and 10277.5 of the Welfare and Institutions Code.)