The General Assembly Raised Bill No. 265 proposes to allocate additional funding for the Care 4 Kids program and certain child care providers. Specifically, it mandates the transfer of seventy million dollars from the Federal Cuts Response Fund to the Office of Early Childhood for the fiscal year ending June 30, 2026. Of this amount, sixty-five million dollars is designated to supplement the child care subsidy program, prioritizing children on the waiting list, particularly those from families with other children already covered by the program and those with special needs. Any remaining funds after this allocation may be used for provider stabilization, workforce recruitment and retention, expanded access to subsidized child care, increased program capacity, and quality improvement efforts.

Additionally, the bill allocates five million dollars to be distributed at the discretion of the Commissioner of Early Childhood as bonuses to licensed child care providers in eastern Connecticut who participate in the child care subsidy program or other subsidized programs for low-income families. This funding aims to address regional disparities in provider capacity, workforce shortages, and access to child care services. The bill introduces new legal language regarding these funding allocations while making no deletions from existing law.