Welfare and Institutions Code § 10277.1

(a)Funding shall be allocated to the State Department of Social Services from funds in Schedule (3) of Item 5180-101-0001 of the Budget Act of 2023 and the Budget Act of 2025 and to the State Department of Education from funds specified in Schedule (1) of Item 6100-194-0001 and Schedule (1) of 6100-196-0001 of the Budget Act of 2023, the Budget Act of 2024, and the Budget Act of 2025 to provide a once-per-month, per-child-served who is enrolled in subsidized childcare cost of care plus rate.

(b)(1) Of the funding described in subdivision (a), the Legislature hereby allocates funds to the State Department of Social Services and the State Department of Education to provide family childcare providers with the monthly cost of care plus rate

commencing January 1, 2024, and

to June 30, 2025, inclusive. The amount per child shall range between ninety-eight dollars ($98) and two hundred eleven dollars ($211) per month to be determined based on the family childcare provider type and the region in which the family childcare provider is located pursuant to paragraphs (2) and (3). The state shall provide the amount of the monthly costs of care plus rate for all family childcare providers serving children described in this paragraph based on the number of subsidized children enrolled. This monthly rate shall be issued to family childcare providers based on monthly child enrollments for subsidized childcare and development and state preschool programs.

(2)Per child rate amounts shall

be as follows:

(A)For family childcare providers in the central region, ninety-eight dollars ($98) per each license-exempt family childcare provider, and one hundred forty dollars ($140) per each licensed family childcare provider.

(B)For family childcare providers in the northern region, ninety-nine dollars ($99) per each license-exempt family childcare provider, and one hundred forty-one dollars ($141) per each licensed family childcare provider.

(C)For family childcare providers in the southern region, one hundred twelve dollars ($112) per each license-exempt family childcare provider, and one hundred sixty dollars ($160) per each licensed family childcare provider.

(D)For family childcare providers in the Los Angeles region, one hundred nineteen

dollars ($119) per each license-exempt family childcare provider, and one hundred seventy-one dollars ($171) per each licensed family childcare provider.

(E)For family childcare providers in the bay area region, one hundred forty-eight dollars ($148) per each license-exempt family childcare provider, and two hundred eleven dollars ($211) per each licensed family childcare provider.

(3)Regions are defined as follows:

(A)The central region includes the Counties of Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Monterey, Sacramento, San Benito, San Joaquin, San Luis Obispo, Stanislaus, and Tulare.

(B)The northern region includes the Counties of Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen,

Mendocino, Modoc, Mono, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, and Yuba.

(C)The southern region includes the Counties of Imperial, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura.

(D)The Los Angeles region includes the County of Los Angeles only.

(E)The bay area region includes the Counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma.

(c)(1) Funding shall be allocated to the State Department of Social Services from funds in Schedule (3) of Item 5180-101-0001 of the Budget Act of 2025 and to the State Department of Education from funds specified in

Schedule (1) of Item 6100-194-0001 and Schedule (1) of 6100-196-0001 of the Budget Act of 2023, the Budget Act of 2024, and the Budget Act of 2025 to provide a once-per-month, per-child-served who is enrolled in subsidized childcare cost of care plus rate.

(2)(A) Of the funding described in paragraph (1), the Legislature hereby allocates funds to the State Department of Social Services and the State Department of Education to provide family childcare providers with the monthly cost of care plus rate commencing July 1, 2025, and through June 30, 2026, inclusive. Commencing July 1, 2026, the monthly cost of care plus rates shall continue. The amount per child shall be equal to the amounts

described in subdivision (b) increased by the percentage calculated in clause (iii) of subparagraph (B). The state shall provide the amount of the monthly costs of care plus rate for all family childcare providers serving children described in this paragraph based on the number of subsidized children enrolled. This monthly rate shall be issued to family childcare providers based on monthly child enrollments for subsidized childcare and development and state preschool programs.

(B)The Department of Finance shall make the following calculations based on data provided by the State Department of Social Services and the State Department of Education:

(i)The total cost of providing the statutory cost of living adjustment for childcare programs and State Preschool programs operated by nonlocal educational agencies in the 2025–26 fiscal year pursuant to subdivision (b) of Section 10280

of this code and paragraph (2) of subdivision (b) of Section 42238.15 of the Education Code. These programs include alternative payment programs, including migrant alternative payment programs pursuant to Chapter 3 (commencing with Section 10225), migrant childcare and development programs pursuant to Chapter 6 (commencing with Section 10235), general childcare and development programs pursuant to Chapter 7 (commencing with Section 10240), family childcare home education networks pursuant to Chapter 8 (commencing with Section 10250), and childcare and development services for children with special needs pursuant to Chapter 9 (commencing with Section 10260) of this part, and the California state preschool program pursuant to Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code, and exclude state preschool programs operated by local educational agencies.

(ii) The estimated cost of providing the monthly

cost of care plus rates described in subdivision (b) of this section and subdivision (b) of Section 10277.2 in the 2025–26 fiscal year, excluding costs for state preschool programs operated by local educational agencies, based on the estimates of child enrollment in 2025–26 provided by the State Department of Social Services and State Department of Education, respectively.

(iii) Divide the amount calculated in clause (i) by the amount calculated in clause (ii).

(C) Family childcare provides shall be paid the increase calculated in clause (iii) of subparagraph (B), per child, for each month or partial month occurring between July 1, 2025, and December 30, 2025, inclusive, as a one-time payment. The one-time payment shall be applicable to all family childcare providers who were reimbursed for

subsidized childcare and development or state preschool program services in the month of April 2025, based on enrollment numbers for that month.

(D) (i) The payment described in subparagraph (C) is due to providers by January 1, 2026, contingent upon full ratification by September 30, 2025, of the tentative agreement reached between the State of California and the Child Care Providers United - California on August 7, 2025.

(ii) If full ratification of the tentative agreement reached between the State of California and the Child Care Providers United - California on August 7, 2025, is not achieved by September 30, 2025, providers shall receive an increase to the one-time payment described in subparagraph (C), and the January 1, 2026, deadline described

in clause (i) shall not apply. If the payment is not made to providers by January 1, 2026, the following per-child amounts shall be added to the one-time payment described in subparagraph (C) for each additional month or partial month, occurring after January 1, 2026, for which providers have not received the payment described in subparagraph (C):

(I) For family childcare providers in the central region, twelve dollars ($12) per child, per each licensed family childcare provider, and nine dollars ($9) per child, per each license-exempt family childcare provider.

(II) For family childcare providers in the northern region, thirteen dollars ($13) per child, per each licensed family childcare provider, and nine dollars ($9) per child, per each license-exempt family childcare provider.

(III) For family childcare providers

in the southern region, fourteen dollars ($14) per child, per each licensed family childcare provider, and ten dollars ($10) per child, per each license-exempt family childcare provider.

(IV) For family childcare providers in the Los Angeles region, fifteen dollars ($15) per child, per each licensed family childcare provider, and eleven dollars ($11) per child, per each license-exempt family childcare provider.

(V) For family childcare providers in the bay area region, nineteen dollars ($19) per child, per each licensed family childcare provider, and thirteen dollars ($13) per child, per each license-exempt family childcare provider.

(E) Commencing January 1, 2026, or the date that the one-time payment

described in subparagraph (C) is made to family childcare providers, whichever is later, providers shall receive the increased monthly cost of care plus rate calculated pursuant to subparagraphs (A) and (B) as a per-child monthly payment. The per-child monthly rate calculated pursuant to subparagraphs (A) and (B) shall range between one hundred seven dollars ($107) and two hundred thirty dollars ($230). Per-child amounts shall be as follows:

(i)For family childcare providers in the central region, one hundred seven dollars ($107) per each license-exempt family childcare provider, and one hundred fifty-two dollars ($152) per each licensed family childcare provider.

(ii) For family childcare providers in the northern region, one hundred eight dollars ($108) per each

license-exempt family childcare provider, and one hundred fifty-four dollars ($154) per each licensed family childcare provider.

(iii) For family childcare providers in the southern region, one hundred twenty-two dollars ($122) per each license-exempt family childcare provider, and one hundred seventy-four dollars ($174) per each licensed family childcare provider.

(iv) For family childcare providers in the Los Angeles region, one hundred thirty dollars ($130) per each license-exempt family childcare provider, and one hundred eighty-six dollars ($186) per each licensed family childcare provider.

(v)For family childcare providers in the bay area region, one hundred sixty-one dollars ($161) per each license-exempt family childcare provider, and two hundred thirty dollars ($230) per each licensed family childcare

provider.

(F) The regions described in this paragraph are the same as those defined in paragraph (3) of subdivision (b).

(d)(1) The State Department of Social Services and the State Department of Education

shall

provide family childcare providers with a one-time stabilization payment. This payment is due to providers no later than January 1, 2026, contingent upon full ratification by September 30, 2025, of the tentative agreement reached between the State of California and the Child Care Providers United - California on August 7, 2025. If full ratification is not reached by September 30, 2025, the January 1, 2026 deadline shall not apply. The payment amounts shall be

per-child-served who is enrolled in subsidized childcare,

pursuant to paragraph (2). The one-time, per-child stabilization payment shall be applicable to all family childcare providers who were reimbursed for subsidized childcare and development or state preschool program services in the month of April 2025, based on enrollment numbers for that month.

(2)One-time, per-child stabilization payment

amounts shall be

as follows:

(A)Three hundred dollars ($300) for license-exempt family childcare providers.

(B)Four hundred thirty-one dollars ($431) for family childcare providers licensed

to operate a

family daycare home, as defined in subdivision (b) or (c) of Section 1596.78 of the Health and Safety Code.

(e)The monthly reimbursement rate and the one-time, per-child stabilization payment described in this section shall be payable to family childcare providers operating or serving programs pursuant to

Chapter 3 (commencing with Section 10225) of, Chapter 6 (commencing with Section 10235) of, Chapter 7 (commencing with Section 10240) of, Chapter 8 (commencing with Section 10250) of, Chapter 9 (commencing with Section 10260) of, or Chapter 21 (commencing with Section 10370) of, Part 1.8 of Division 9 of this code, or the Emergency Child Care Bridge Program for Foster Children pursuant to Chapter 2 (commencing with Section 11461.6) of Part 2 of this code, or Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code.

(f)In addition to the monthly rates and one-time, per-child stabilization payments described in this section, the State Department of Education and the State Department of Social Services shall

provide state preschool programs, alternative payment and direct contract programs, or any other agency designated to distribute payments to these providers with a 10-percent administrative fee for processing the monthly rates and a 5-percent administrative fee for processing the one-time payments described in subparagraph (C) of paragraph (2) of subdivision (c) and the one-time, per-child stabilization payments. For payments provided after June 30, 2025, the 10-percent administrative fee for processing the monthly rates shall only apply to the monthly rate amounts specified in subdivision (b).

(g)The State Department of Education shall allocate funding to California state preschool contracting agencies for distribution of rates and payments pursuant to this section to the family childcare providers participating in a state preschool

program family childcare home education network, and the State Department of Social Services shall allocate funding to contracting agencies for distribution of rates and payments pursuant to this section to family childcare providers participating in subsidized childcare and development programs administered by the State Department of Social Services.

(h)The State Department of Education and the State Department of Social Services shall exchange any essential data necessary to issue payments to family childcare providers.

(i)The state may designate another agency or agencies to distribute the funds described in subdivision (e) to family childcare providers. Funds allocated

pursuant to this section shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, the Public Contract Code, and the State Contracting Manual, and shall not be subject to the review or approval of the Department of General Services.

(j)For purposes of this section, a “family childcare provider” means a provider who participates in a state-funded early care and education program, as defined in subdivision (b) of Section 10421.

(k)Nothing in this section shall be construed to limit the authority of childcare contractors and providers to pass on rates and

one-time, per-child stabilization payments pursuant to this section to their employees in the form of compensation, including, but not limited to, salaries, wages, and direct benefits.

(l)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature.