State Updates

SB 380 (Menjivar): Creating a Cross-Enrollment System Between Medi-Cal and AP Agencies

SB 1112 (Limón): (Formerly Early Learning and Care: Rate Reform) Amended to California State Preschool Programs: Age of Eligibility

AB 1907 (Pellerin): Integrating CANS into the California Child and Family Review System

AB 2476 (Bonta): Establishing Up-Front Child Care Payments

Click here to visit the Network’s State Legislation Page.

What’s Next?

Click here to subscribe to the Network’s Public Policy listserv to receive updates on state and federal legislation and budget items.

Note on the State Budget:

While the 2024 State Budget Act has been signed, the Legislature has until August 30 to make amendments to budget-related trailer bills (the legislation that facilitates budget enactment). The 2024 budget process concludes when the Governor signs budget revisions into law in September, with possible line-item vetoes.

Gearing up for Next Year’s Budget:

Figure 1: Modest Operating Deficits Over the Multiyear

The LAO predicts ongoing annual budget deficits of at least $10 billion until 2028. This may trigger ongoing cuts to child care and other safety net programs that affect children and families. The projected budget landscape continues to inform the Network’s public policy priorities and advocacy strategies. Stay tuned for the Network’s 2025 Public Policy Agenda and annual Child Care Portfolio.

Federal Updates

The federal fiscal year began October 1, 2023 and ends September 30, 2024. However, unlike the state budget, the federal fiscal year begins with or without a final approved budget (comprised of 12 appropriations bills).

On July 10, the House Appropriations Committee approved the FY25 Labor, Health and Human Services, Education, and Related Agencies Appropriations Act.

What did it include?

  • Total Funding: $185.8 billion in total discretionary funding, a $24.6 billion or 11% cut from FY2024.
  • Health and Human Services: $107 in total discretionary funding, a $8.5 billion or 7% cut from FY2024.
  • Child Care and Development Block Grant: $8.7 billion, a $25 million increase from FY2024.
  • Head Start: $12.3 billion, a $25M increase from FY2024.
  • Preschool Development Grant: $250 million, $65 million or 20% cut from FY2024, but maintained from the President’s budget request.
  • Adopted Amendments: Prohibits the implementation of Child Care and Development Fund Final Rule provisions, which would reduce access to funding for faith-based organizations.

On July 25, the Senate Committee on Appropriations passed a tentative agreement to raise spending above the mandatory FRA caps, increasing nondefense spending by $13.5 billion in emergency funding.

On August 1, the Senate Appropriations Committee approved the FY25Labor, Health and Human Services, Education, and Related Agencies appropriations bills.

What did it include?

  • Total Funding: $231.14 billion in base discretionary funding.
  • Health and Human Services: $122.8 billion, a $2.3 billion increase from FY2024.
  • Child Care and Development Block Grant: $10.35 billion, an 18% increase from FY2024.
  • Head Start: $12.97 billion, a $700 million increase from FY2024.
  • Preschool Development Grant: $315 million, maintained from FY2024.

Click Here for the Federal Appropriations Status Table.

What’s Next?

Congress reconvenes in September and will work on passing short-term continuing resolutions ahead of the September 30 budget deadline. A final appropriations package is not likely until after the November 5 election.

Federal Child Tax Credit:

Enacted in 1997, the Child Tax Credit (CTC) provides major tax relief for nearly all working families. H.R.7024 would expand the CTC for three years to get “more of the credit to most of the roughly 19 million children [including 2 million CA children] who currently get a partial credit or none at all because their families’ incomes are too low”. In January, the bill passed the House overwhelmingly, but was blocked from passage last Thursday (8/1). Read more here.

What does the CTC Expansion Include?

Proposed Bipartisan Expansion Includes Per-Child Phase-In, Boosting Credit for Many Low-Income Families
  • Moving to a “per-child” phase-in to ensure low-income families receive the same credit for each of their children, as higher-income families.

  • Increasing and ending in tax year 2025 the lower maximum credit amount (known as the “refundability cap”) that only limits the credit for families with low income.

  • Allowing families to use their earnings from either the current tax year or the year before when calculating CTC to help protect them from a drop in their credit if earnings decline.

Who does it impact?

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Groups where parents are overrepresented in low-paid jobs due to historical and ongoing discrimination and other structural barriers to opportunity. In the first year alone, the CTC expansion would benefit:

  • Broadly, 1 in 5 children under 17
  • More than 1 in 3 Black and Latino Children under 17
  • 3 in 10 of all American Indian and Alaska Native children under 17
  • 1 in 7 of all white and Asian children under 17
  • During the first year, it is expected to lift 400k children above the poverty line and 500k when in full effect in 2025.

Emergency Child Care Funding:

Emergency child care funding expired September 30, 2023. Child care advocates are asking for an additional $16 billion in emergency funding, which would have vast impacts across the country, and would provide California $1.5 billion to support 50k providers and 723k children.

Call to Action: Urge your Members of Congress to support the $16 billion Proposal.

Research Department Updates

A Warm Farewell to the Network’s Research Director, Gemma DiMatteo

It is with mixed emotions that we announce the departure of our Research Director, Gemma DiMatteo. Gemma has been an invaluable part of our team, bringing a wealth of knowledge, experience, and compassion.

Gemma's significant contributions include ongoing work on the Child Care Portfolio, the creation of the R&R Impact Project, the FFN Bias Project, and many other research initiatives. We wish her the best in her next chapter.

R&R Impact Project:

We have concluded data collection for the R&R Impact Project for FY 2023-24 and are now compiling the final agency and state reports.

As we begin the data collection process for FY 2024-25, we invite all R&Rs to participate. For more information, visit our website here or contact Natalie Rivera, Research and Policy Associate, at nrivera@rrnetwork.org.

Connect with the Public Policy Team at Upcoming Events:

  • BlackECE Symposium
    • Join us from August 9-10 at BlackECE’s first ever symposium to convene, collaborate, and innovate for Black early care and education. Register here.
  • Joint Conference
    • A virtual conference will be held November 12-14. Register here.
    • From October 28-30, the R&R Network and Thriving Families California will host the annual joint hybrid conference in Sacramento. Register here.

State Updates

Budget Act of 2024 Signed:

On June 29, Governor Newsom signed the 2024-25 State Budget, which went into effect July 1. Read the Network’s response, which lays out child care wins, missed opportunities, and future challenges.

Learn more about the 2024 Budget Act in the Network's summary and the Senate summary.

Click here to view the evolution of the 2024 State Budget.

Bill Updates:

  • AB 1907
    • Would require outcome indicators used by the California Health and Human Services Agency workgroup (used to review all county child welfare systems) to include data from the Child and Adolescent Needs and Strengths (CANS) assessment tool.

    • Status: Passed in the first chamber, re-referred to the Senate Committee on Appropriations, and set for hearing on August 5 @ 10am.

  • AB 1925
    • Would add children who are eligible under the Individuals with Disabilities Act (IDEA) to the eligibility criterion for General Child Care and Development programs.

    • Status: Held in the first chamber

  • AB 2476
    • Ensures that child care providers that receive payment through California's Alternative Payment Program (CAPP) receive payment prior to providing services.

    • Status: Passed in the first chamber, re-referred to the Senate Committee on Appropriations and set for hearing August 5, @10am.

  • AB 2123
    • Allows California employees to access Paid Family Leave benefits without first using up their two weeks of accrued vacation.

    • Status: Passed in the first chamber, re-referred to the Senate Committee on Appropriations and ordered to a third reading.

  • SB 1090
    • Would allow California Workers to apply for Paid Family Leave and State Disability Insurance benefits up to 30 days before they go on leave.

    • Status: Passed in the first chamber, re-referred to the Assembly Committee on Appropriations with recommendation to consent calendar.

PPC Bills:

  • AB 1808
    • Would establish a consistent 12 month eligibility period for all income-eligible families within CalWORKs.
    • Status: Passed in the first chamber and re-referred to the Senate Committee on Appropriations. On suspense.
  • SB 1112
    • Would require coordination and collaboration between Medi-Cal and Alternative Payment Agencies to assist families with Medi-Cal enrollment of an eligible child and to refer Medi-Cal recipients to additional developmental screenings and interventions.
    • Status: Passed in the first chamber, re-referred to the Assembly Committee on Appropriations with recommendation to consent calendar.
  • AB 2206
    • Would no longer require a child daycare facility to obtain a revised fire clearance for the addition of each nonambulatory child once approved for enrollment. This would apply to child care facilities that obtained clearance before January 1, 2025.
    • Status: Held in the first chamber.
  • AB 2343
    • Would specify that there are no restrictions for agencies administering CalWORKs Stage 1 and Stage 2 child care programs from providing enhanced support and navigation for families experiencing homelessness, escaping domestic violence, or both.
    • Status: Passed in the first chamber, referred to the Senate Committee on Appropriations and ordered to a third reading.
  • SB 380
    • Gutted and amended from a rate reform bill to a preschool eligibility bill. Would allow California preschool contractors to enroll eligible 2-year-old children until July 1, 2027. After which, contractors may only continue serving 2-year-olds enrolled before July 1, 2027.
    • Status: Adopted in Trailer Bill SB 163: Early Learning and Childcare. Signed by Governor on 7/2/2024.

What’s next?

  • The deadline for bills to pass in the first house (i.e., the house of origin) was May 24. Click here to view and stay updated on the Network’s priority bills and scheduled hearings.
  • Bills were heard in policy committees throughout the month of June.
  • The legislature takes a summer recess for the month of July.
  • In August, the legislature comes back for appropriations hearings.
  • Upcoming Hearings:
  • Hearing on budget reserves and 2025 oversight and accountability priorities.
  • Bills must pass by August 31 to be sent to the Governor.

  • The Governor has until September 30 to sign or veto bills.

Federal Updates

In early March, President Biden released his FY25 Budget Plan, proposing the following allocations for child care and early learning programs:

Congress considers the president’s budget plan when drafting and negotiating federal budget legislation, which is made up of 12 appropriations bills. Each bill corresponds to a subcommittee, which then drafts appropriation bills based on allocations for the programs under their jurisdiction.

In May, the House Appropriations Committee released the interim FY25 subcommittee allocations, which included a 6% cut to non-defense programs (such as nutrition, child care, agriculture, etc.). Cuts are unevenly distributed across programs, but result in an estimated 10-11% cut to Human Services-Education, which administers CCDBG funding.

On June 26, the House Appropriations Committee for Labor, Health, and Human Services, and Education marked up their funding proposal for FY25, which includes:

  • A total allocation of $198.4 billion, a decrease of $24.6 billion, or 11%, below FY24 funding levels.
  • $8.7 billion funding increase for CCDBG, a $25 million increase from FY24 enacted levels.
  • $25 million increase to Head Start.

What’s Next?
On July 10, Members of the House Appropriations Committee met to consider funding levels for child care and early learning programs for next year (FY2025). The Senate/House will continue to hold hearings and mark up appropriations bills. A final FY25 appropriations package is not likely until after the November 5 election.

Connect with the Public Policy Team at Upcoming Events:

  • BlackECE Symposium
    • Join us from August 9-10 at BlackECE’s first ever symposium to convene, collaborate, and innovate for Black early care and education. Register here ASAP as space is limited.
  • Joint Conference
    • From October 28-30, the R&R Network and Thriving Families California (CAPPA) will host the annual joint hybrid conference in Sacramento. The conference will offer keynote presentations, workshops, networking opportunities, and connection time with vendors.
    • A virtual conference will be held November 12-14 to increase access and provide flexibility.
    • Register here for the in-person conference and here for the virtual conference.

State Updates

May Revise:

On May 10, Governor Gavin Newsom released an updated budget proposal known as the “May Revision” or “May Revise.” It included up-to-date revenue figures from income, corporate, and sales taxes as well as early action items aimed at reducing an estimated $27.6 billion deficit (which the LAO estimated at $56 billion). The difference in deficit estimates can be attributed to how changes in Proposition 98 were accounted for in the budget. Click here to learn more. The May Revision also included a number of budget cuts to vital safety net programs, including several child care programs (listed below). Read the full overview of May Revision cuts here.

Letter to the CA’s Democratic Congressional Delegation:

In late May, the Network sent a letter to the California Democratic Congressional Delegation asking them to pressure Governor Newsom to reconsider, and ultimately reject the harmful cuts proposed in the May Revision. Read our letter here.

Joint Budget Plan:

Since the release of the May Revision, the Senate and Assembly have worked together to craft a Joint Budget Plan, which must be passed by June 15, 2024. The Budget Plan was released on May 29, heard and passed in ASM/SEN Budget Subcommittees on May 30th, and now awaits a final Senate Full Budget Committee hearing (expected any day now). The Budget Plan restores funding to a number of vital safety net programs, including child care (listed below). You can read the Joint Budget Plan summaries here and here.

Side-by-Side Comparison of the May Revision and Joint Budget Plan

May Revise Proposed Cuts:

Read the full overview of May Revision cuts here.

Joint Budget Plan Changes:

You can read the Joint Budget Plan summaries here and here.

Child Care Slot Expansion

Indefinitely ‘pauses’ the 200,000 child care slot expansion, limiting the expansion to approximately 119k slots.

Rejects the indefinite pause and instead enacts a two-year pause, with trailer bill language specifying the plan to reach over 200,000 new subsidized slots by 2028. Also creates reversion accounting for all child care programs.

CCTR Child Care Slots

Rescinds 27,000 slots for the General Child Development Program (CCTR), which were awarded to providers in Spring 2024.

Continues to fund the 11,000 CCTR slots already awarded in Spring 2024.

CalWORKs Programs

Cuts $47.1 million ongoing from the CalWORKs Home Visiting Program. Cuts $126.6 million in total funding for CalWORKs mental health and substance use disorder services, effectively eliminating all services.

Rejects cuts and restores funding for the CalWORKs Home Visiting Program and CalWORKs Mental Health and Substance Abuse Services.

Emergency Child Care Bridge Program for Foster Children (Bridge Program)

Cuts $34.8 million or 40% ongoing from the Bridge Program. Click here to read a letter the Network signed urging legislators to reject harmful cuts to the Bridge Program.

Rejects cuts and instead adopts budget language to retroactively revert $34.8 million in unspent 2022-23 funds to 2023-24. Also reverts $30 million in unspent 2023-24 funds to 2024-25 to offset General Fund costs. Total General Fund levels for the Bridge Program will remain $83.4 million ongoing.

While we commend the ASM/SEN for creating a Joint Budget Plan that protects drastic cuts to safety net programs, the LAO still predicts $10 billion in ongoing deficits through FY2028. Rather than resorting to short-term solutions like cuts or reserve withdrawals, California should instead begin exploring alternative, long-term solutions to its future deficit problems.

Alternative Budget Solutions Could Include: Ending wasteful tax cuts to increase state revenue and reduce the need to cut vital programs. California is currently estimated to lose nearly $70 billion annually through personal and corporate income tax breaks.

  • Note: There is currently important action around the Taxpayer Protection Act, a potential ballot measure that would significantly hinder the legislature’s ability to collect or change state or local taxation. Read more here and here.
  • Reducing wasteful spending through state prison closures. The LAO estimates $1 billion in ongoing annual savings upon the closure of just 5 State prisons. The May Revision proposes to close 15-20k specific housing units, but makes no concrete plans for full closures.

Budget Process Next Steps:

  • On May 30, the Joint Legislative Budget Plan was heard and passed in both Senate and Assembly Budget Subcommittees. The Budget Plan also passed the ASM Budget Full Committee with 18 Ayes and 4 Noes. The Budget Plan now goes to the SEN Budget Full Committee, and is expected to be heard any day now. Check back here for scheduled hearings.
  • The Joint Budget Act must be passed on or before Sunday, June 15. Note: The Budget Act must be published on the California Legislative Information website by June 12 to meet the 72-hour bill-in-print requirement.
  • The Governor will then have until Thursday, June 27 to sign or veto the legislative Budget Bill.
  • In late June, proposed trailer bills may further amend the Budget Bill before the 2024-25 fiscal year begins on Monday, July 1.
  • Legislation almost always returns in August for further budget amendments and to clean up the final Budget Bill.

Legislative Updates:

Bill Updates

Bill

Description

Status

AB 1907

Would require outcome indicators used by the California Health and Human Services Agency workgroup (used to review all county child welfare systems) to include data from the Child and Adolescent Needs and Strengths (CANS) assessment tool.

Passed in first chamber

AB 1925

Would add children who are eligible under the Individuals with Disabilities Act (IDEA) to the eligibility criterion for General Child Care and Development programs.

Held in first chamber

AB 2476

Ensures that child care providers that receive payment through California's Alternative Payment Program (CAPP) receive payment prior to providing services.

Passed in first chamber

AB 2123

Allows California employees to access Paid Family Leave benefits without first using up their two weeks of accrued vacation.

Passed in first chamber

SB 1090

Would allow California Workers to apply for Paid Family Leave and State Disability Insurance benefits up to 30 days before they go on leave.

Passed in first chamber

PPC Bills

AB 1808 (PPC Bill)

Would establish a consistent 12 month eligibility period for all income-eligible families within CalWORKs.

Passed in first chamber

SB 1112 (PPC Bill)

Would require coordination and collaboration between Medi-Cal and Alternative Payment Agencies to assist families with Medi-Cal enrollment of an eligible child and to refer Medi-Cal recipients to additional developmental screenings and interventions.

Passed in first chamber

AB 2206

Would require the department to permit children with exceptional needs to be accepted and attend a licensed child care or child development program before the program obtains a revised fire safety clearance.

Held in first chamber

AB 2343

Would authorize an administrator of a child care program providing services during the first and 2nd stages of child care to provide additional enhanced support and navigation services to those recipients experiencing homelessness, escaping domestic violence, or both.

Passed in first chamber

SB 380/AB 596

Announces intent to reform rates and waive family fees.

No new action.


Legislative Process Next Steps:

  • The deadline for bills to pass in the first house (i.e., the house of origin) was May 24. Click here to view and stay updated on the Network’s priority bills and scheduled hearings.
  • From now until late August, bills will go through policy committee hearings in the second house. Bills will be heard in policy committees throughout the month of June.
  • The legislature takes a summer recess for the month of July.
  • In August, the legislature comes back for appropriations hearings.
  • Bills must pass by August 31 to be sent to the Governor.
  • The Governor has until September 30 to sign or veto bills.

Network Public Policy Updates

R&R Advocacy Days

Throughout March and April the Network helped members plan R&R advocacy days in their legislators' districts. R&Rs across the state invited legislators to local events or to tour R&R offices and child care infrastructure sites. The goal was to make or deepen connections with legislators and to build child care champions. The Network provided planning support, as well as talking points for R&Rs focusing on preserving the child care budget in a deficit, fulfilling the Governor's promise of reaching 200k child care slots by 2026-27, and advancing a rate methodology that reflects the true cost of care. Great job to all who participated, and we hope your representatives were persuaded to support child care and family supports in important upcoming votes!

First 5 Summit

In late March, the Public Policy and Research team convened at the First 5 Child Health, Education, and Care Summit to present the preliminary findings of our ongoing two-year FFN bias study. The summit hosted a number of child care organizations and providers to discuss new and improved systems-change frameworks and initiatives targeting children ages 0-5 with the goal of creating the relationships and environments necessary for healthy childhood development.

4Cs Alameda: Legislators’ Breakfast

On March 28, Public Policy Director Menaka Mahajan joined 4Cs Alameda County for an R&R Advocacy Legislators’ Breakfast, an annual event they decided to revitalize after 5+ years. 4Cs invited legislative staff for Assemblymember Alex Lee, Senator Aisha Wahab, and Assemblymember Liz Ortega, as well as Hayward’s Mayor Mark Salinas and other state officials. Hosted at the 4Cs office, the breakfast provided an opportunity to showcase R&R impacts (for example, over 11,222 child care referrals) as well as new initiatives such as their father-specific events. The breakfast was a huge success, sparking important dialogues with state and local representatives about the importance of resource & referral programs.

CCDF State Plan Presentation

On April 3, the Network’s Policy Director presented at the Child Care Aware of America (CCAoA) national webinar on Child Care Development Fund (CCDF) funding and state plan advocacy. Speaking to organizations from across the country, the Network showcased best practices for community advocacy and engagement with CCDF state plan comments. Menaka spoke about how the Network conducted outreach to members for comments, organized and collected input, and provided educational materials to help members understand the content of the state plan and input process.

CAPSLO: Children’s Day in the Plaza

On April 6, Public Policy Director Menaka Mahajan headed down to San Luis Obispo for CAPSLO’s Children’s Day in the Plaza event to celebrate April as the month of child and child abuse prevention. CAPSLO invited state and local elected officials for a day of fun and connection. At the event, children were able to get their face painted, play games, or do arts and crafts, while parents could sign up for child care referrals or connect with other services on site. Local businesses also came out to show support. It was an inspiring display of community and collaboration.

Hively: Week of the Child

On April 13, the Network’s Public Policy team attended Hively’s Week of the Child Annual Event at their Family Resource Center in Dublin. Hively hosted a lively event featuring face painting, arts and crafts, games, and books. Our team also got a tour of the resource center, including the permanent food, diaper, and baby clothes donation center available for all families in the community.

Policy Insights Conference

On April 16, the Network’s Public Policy Team attended the Budget & Policy Center Insights Conference in Sacramento alongside partners from Work & Family Coalition, ECE Coalition, and representatives from member organizations. Child care advocates from across the state engaged in a wide range of conversations about child care, housing, racial equity, budget solutions, and more!

Options for Learning: Advocacy Day

On April 17, Policy & Research Associate Natalie Rivera attended Options for Learning’s event in Baldwin Park. Options for Learning hosted representatives from Assemblymember Blanca E. Rubio, Senators Bob Archuleta and Susan Rubio, and Congresswoman Judy Chu, as well as partners from Child Care Alliance, First 5, and SEIU Local 99. The event included an impact presentation, a question and answer session, and finished with a tour of the child services and nutrition program. With a host of child care advocates, Options for Learning’s event sparked vibrant conversations on how to support California’s child care system and families.

Child Care Budget Hearings

On April 24 and 25, the Policy Team headed up to Sacramento for the Assembly and Senate budget hearings on child care. There, we met up with our ECE Coalition partners to speak on key child care sector priorities including: completing the rollout of 200k spaces by the end of Governor Newsom’s term, advancing a new rate methodology that reflects the true cost of care, and urging legislators to reconsider the harmful cuts to CalWORKS programs.

Semi Annual Member Meeting

On April 25, the Network hosted the Semi Annual Member Meeting in Sacramento. During this meeting, partners from the Child Care Aware, the Public Policy Institute of California, the Bay Area Council Economic Institute, and the California Budget and Policy Center reflected on state and federal budget concerns, sparking conversations on how to build a stronger economy that supports California’s child care system. The Network also invited our state partners from CDSS, CACFP, and the CDE to provide our members with important department updates. The Public Policy team provided updates on 2024 policy and legislative priorities.

Legislative Office Visits

After the Assembly and Senate child care budget hearings on April 24 and 25, the Public Policy Team took the opportunity to visit legislators in person. The team visited over 30 legislative offices in total. Our conversations centered around preserving and strengthening child care programming and funding, as well as other social and economic resources for families.


Coalition Engagement

ECE Coalition: The Network is a member of the Early Care and Education Coalition, which advocates for state budget investments and policies that promote equity by serving the highest-need children first. The Network joined ECE Coalition members in the Capitol to testify at the ASM and SEN child care budget hearings. In addition to general ECE Coalition membership, the Network sits on the Policy and Anti-Racism Committees.

Work & Family Coalition: The Network participates in the WFC coalition to advance our commitment to a whole child and family focus.

Early Childhood Workforce Roundtable: The Network worked on the Early Childhood Workforce Roundtable hosted by the Center for the Study of Child Care Employment (UC Berkeley), contributing to discussions on narrative analysis and change.

Stronger CA: The Network works within the Stronger California Coalition alongside a range of advocates who focus on equal rights, family caregiver policies, family supports, child care and more.

WCEP: The Network is part of the Whole Child Equity Partnership’s Steering Committee, Child Care Workgroup, and Communications Workgroup. Our Executive Director Linda Asato recently spearheaded efforts to engage with DSS leadership to keep Rate Reform moving on schedule alongside our partners from The Children’s Partnership, First5LA, Catalyst CA, SEIU, and BlackECE.

Click here to view the slideshow from our 2024 R&R Advocacy Days!


Click here to subscribe to the Network’s Public Policy listserv to receive updates on state and federal legislation and budget items.