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 mandates that families with incomes at or below one hundred percent (100%) of the federal poverty level receive free childcare, while families with incomes above this threshold will pay a portion of their childcare costs based on a sliding-fee scale, capped at seven percent (7%) of their income. Additionally, the act sets a cap on liquid resources at one million dollars ($1,000,000) for eligibility and allows families of reserve component members called to active duty to have their family composition and income frozen for eligibility purposes.

Effective July 1, 2025, the act updates the rates paid to licensed childcare centers and family childcare homes based on the 2024 Rhode Island childcare market rate survey, ensuring that all rates meet or exceed the federal equal access benchmark. The act introduces tiered reimbursement rates for licensed childcare providers, a differential bonus rate for infants under eighteen (18) months, and allows for the establishment of alternative rates to enhance accessibility and availability of quality childcare.

The legislation also repeals previous provisions related to childcare assistance eligibility and updates the criteria to align with the new standards set forth in this act. The act will take effect on July 1, 2025.

Statutes affected:
240: 40-5.2-20, 40-6.2-1.1