The proposed legislation, known as the Rhode Island Child Care is Essential Act, amends the Rhode Island Works Program by increasing the income eligibility limits for childcare assistance. The income threshold for families will rise from 261% to 285% of the federal poverty level (FPL) starting January 1, 2027, while the exit threshold will increase from 300% to 325% of the FPL. This change aims to provide greater support to low-income families and ensure they have access to necessary resources.

Additionally, the bill introduces provisions for childcare assistance for families enrolled in Rhode Island public institutions of higher education, allowing families with incomes below 285% of the FPL to receive assistance when necessary for enrollment or maintenance of enrollment in higher education. Families whose incomes exceed 285% of the FPL will continue to be eligible for childcare assistance until their incomes exceed 325% of the FPL.

The legislation also amends reimbursement rates for licensed childcare providers, implementing a tiered system based on the quality rating of the provider, with specific maximum weekly rates established for different age groups. Effective July 1, 2026, the maximum reimbursement rates will be as follows: Infants - $351 to $397, Toddlers - $278 to $315, Preschoolers - $236 to $273, and School Age - $210 to $263. Notably, there will be a 5% increase in reimbursement rates for infant care.

The provisions of the act will take effect in stages, with some starting on July 1, 2026, and others after January 1, 2027, ensuring a gradual implementation of the changes to enhance childcare support and improve the quality of services in Rhode Island.

Statutes affected:
2667: 40-5.2-20, 40-6.2-1.1
2667  SUB A: 40-6.2-1.1
2667  SUB A as amended: 40-5.2-20, 40-6.2-1.1