The "Rhode Island Childcare is Essential Act" establishes the Rhode Island Childcare Assistance Program, which governs family eligibility for the state's childcare subsidy program and the rates paid to childcare providers. The act expands eligibility to families with incomes at or below eighty-five percent (85%) of the state median income, aligning with the federal eligibility benchmark. Families will maintain eligibility until their income exceeds one hundred percent (100%) of the state median income. Participation in the state's child support enforcement program is made voluntary for those receiving childcare subsidies.

The act stipulates that the Department of Human Services will provide appropriate childcare to all families eligible for cash assistance who require childcare to meet work requirements. It also mandates that childcare assistance be provided to families with incomes at or below eighty-five percent (85%) of the state median income, provided they need childcare to work or participate in job readiness programs. Additionally, assistance will be available to families with incomes below eighty-five percent (85%) of the state median income for enrollment in Rhode Island public institutions of higher education.

Eligibility for childcare assistance is capped at a combined value of liquid resources not exceeding one million dollars ($1,000,000). The act allows parents or caretaker relatives to voluntarily access child support services without it being a requirement for assistance. The definition of "appropriate childcare" includes various types of care provided by qualified and authorized individuals or organizations.

Families with incomes at or below one hundred percent (100%) of the applicable federal poverty level will receive free childcare, while those with incomes above this threshold will pay a portion of the childcare costs based on a sliding-fee scale, not exceeding seven percent (7%) of their income. Families who exceed eighty-five percent (85%) of the state median income will continue to receive assistance until their income exceeds one hundred percent (100%) of the state median income.

The act also establishes new rates for childcare assistance, effective July 1, 2025, based on the 2024 Rhode Island childcare market rate survey. Rates will be tiered according to the quality rating achieved by providers, ensuring they meet or exceed the federal equal access benchmark. An additional infant bonus rate will be provided for childcare providers serving infants under eighteen (18) months. The act mandates regular independent market rate surveys and allows the Department of Human Services to establish alternative or incentive rates for quality enhancements and innovative childcare delivery methods.

Furthermore, the act specifies that full-time childcare assistance payment rates will cover thirty (30) to forty-five (45) hours of care per week, with provisions for super full-time rates for additional hours. Payments to childcare providers will be made prospectively, and a registration fee for each child enrolled in the program will be paid to childcare centers.

This act will take effect on July 1, 2025.

Statutes affected:
5281: 40-5.2-20, 40-6.2-1.1