The "Rhode Island Childcare is Essential Act" aims to update and consolidate the Rhode Island Childcare Assistance Program under a new statute. The act expands eligibility for childcare assistance to families with incomes at or below eighty-five percent (85%) of the state median income, aligning with federal eligibility benchmarks. It allows families to maintain eligibility for assistance until their income exceeds one hundred percent (100%) of the state median income.

The act mandates the Department of Human Services to provide childcare assistance to all families requiring childcare to work or participate in training programs, including those receiving cash assistance. It establishes a sliding-fee scale for families with incomes above the federal poverty level, ensuring that no family pays more than seven percent (7%) of their income for childcare. Additionally, families of reserve component members called to active duty can maintain their eligibility for assistance based on their income prior to deployment.

Effective July 1, 2026, the act introduces new tiered reimbursement rates for licensed childcare centers and family childcare homes, which will reflect the quality of care provided and meet or exceed federal equal access benchmarks. The reimbursement rates for infants under eighteen months will be set thirty percent higher than those for toddlers. The act also repeals existing provisions that set different income eligibility thresholds for childcare assistance, streamlining the process.

Overall, the legislation seeks to enhance access to affordable, high-quality childcare for families in Rhode Island while supporting their economic stability and workforce participation.

Statutes affected:
7393: 40-5.2-20, 40-6.2-1.1