The bill amends RCW 43.216.828 to enhance child care subsidy rates in Washington State, aiming to align them with the full cost of providing high-quality child care. Starting July 1, 2026, the base rates for child care subsidies will be set to achieve the 85th percentile of the market, as determined by the latest market rate survey prior to May 20, 2025. The state will engage in bargaining with the exclusive representative for family child care providers regarding the implementation of these subsidy rate increases. Additionally, the bill mandates the development of a child care cost estimate model to ensure that subsidy rates adequately compensate licensed or certified providers.

Significantly, the bill introduces a requirement for the department to review and rebase child care rate regions based on the most recent market rate survey, with adjustments reflecting regional cost of living and economic differences. This review must be completed by August 1, 2026, and subsequently every four years. The bill also ensures that no provider will receive a lower subsidy base rate than the previous year solely due to these adjustments. Furthermore, it reaffirms the collective bargaining rights of family child care providers with the state.

Statutes affected:
Original bill: 43.216.828