This bill mandates the adjustment of reimbursements to child care providers under the child development and care program to account for inflation. It establishes that the Department of Lifelong Education, Advancement, and Potential will determine the average percent change in inflation based on the Detroit-Warren-Dearborn Consumer Price Index every July 1. Starting October 1, 2027, and annually thereafter, the department is required to adjust payment rates to child care providers if the inflation determination results in an increase and if the rates have not been adjusted in accordance with federal regulations.

The bill defines key terms such as "child care provider," "department," and "program," ensuring clarity in its implementation. By linking reimbursement adjustments to inflation metrics, the bill aims to support child care providers financially, thereby enhancing the stability and quality of child care services in Michigan.