Read the full stored bill text
S2667Aaa
2026 -- S 2667 SUBSTITUTE A AS AMENDED
========
LC004412/SUB A
========
STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND WORKS PROGRAM--
RHODE ISLAND CHILD CARE IS ESSENTIAL ACT
Introduced By:
Senators Vargas, DiMario, Urso, Murray, and DiPalma
Date Introduced:
February 27, 2026
Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
1
SECTION 1. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The Rhode
2
Island Works Program" is hereby amended to read as follows:
3
40-5.2-20. Childcare assistance — Families or assistance units eligible.
4
(a) The department shall provide appropriate child care to every participant who is eligible
5
for cash assistance and who requires child care in order to meet the work requirements in
6
accordance with this chapter.
7
(b)
Low-income child care.
The department shall provide child care to all other working
8
families with incomes at or below
two hundred sixty-one percent (261%)
two hundred eighty-five
9
percent (285%)
of the federal poverty level if, and to the extent, these other families require child
10
care in order to work at paid employment as defined in the department’s rules and regulations. The
11
department shall also provide child care to families with incomes below
two hundred sixty-one
12
percent (261%)
two hundred eighty-five percent (285%)
of the federal poverty level if, and to the
13
extent, these families require child care to participate on a short-term basis, as defined in the
14
department’s rules and regulations, in training, apprenticeship, internship, on-the-job training, work
15
experience, work immersion, or other job-readiness/job-attachment program sponsored or funded
16
by the human resource investment council (governor’s workforce board) or state agencies that are
17
part of the coordinated program system pursuant to § 42-102-11. Effective from January 1, 2021,
18
through June 30, 2022, the department shall also provide childcare assistance to families with
1
incomes below one hundred eighty percent (180%) of the federal poverty level when such
2
assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode
3
Island public institution of higher education provided that eligibility to receive funding is capped
4
when expenditures reach $200,000 for this provision. Effective July 1, 2022 through December 31,
5
2024, the department shall also provide childcare assistance to families with incomes below two
6
hundred percent (200%) of the federal poverty level when such assistance is necessary for a
7
member of these families to enroll or maintain enrollment in a Rhode Island public institution of
8
higher education. Effective
from
January 1, 2025
through December 31, 2026
, the department shall
9
also provide childcare assistance to families with incomes below two hundred sixty-one percent
10
(261%) of the federal poverty level when such assistance is necessary for a member of these
11
families to enroll or maintain enrollment in a Rhode Island public institution of higher education.
12
Effective on January 1, 2027, the department shall also provide childcare assistance to families
13
with incomes below two hundred eighty-five percent (285%) of the federal poverty level when such
14
assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode
15
Island public institution of higher education.
16
(c) No family/assistance unit shall be eligible for childcare assistance under this chapter if
17
the combined value of its liquid resources exceeds one million dollars ($1,000,000), which
18
corresponds to the amount permitted by the federal government under the state plan and set forth
19
in the administrative rulemaking process by the department. Liquid resources are defined as any
20
interest(s) in property in the form of cash or other financial instruments or accounts that are readily
21
convertible to cash or cash equivalents. These include, but are not limited to: cash, bank, credit
22
union, or other financial institution savings, checking, and money market accounts; certificates of
23
deposit or other time deposits; stocks; bonds; mutual funds; and other similar financial instruments
24
or accounts. These do not include educational savings accounts, plans, or programs; retirement
25
accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse.
26
The department is authorized to promulgate rules and regulations to determine the ownership and
27
source of the funds in the joint account.
28
(d) As a condition of eligibility for childcare assistance under this chapter, the parent or
29
caretaker relative of the family must consent to, and must cooperate with, the department in
30
establishing paternity, and in establishing and/or enforcing child support and medical support
31
orders for any children in the family receiving appropriate child care under this section in
32
accordance with the applicable sections of title 15, as amended, unless the parent or caretaker
33
relative is found to have good cause for refusing to comply with the requirements of this subsection.
34
(e) For purposes of this section, “appropriate child care” means child care, including infant,
LC004412/SUB A - Page 2 of 10
1
toddler, preschool, nursery school, and school-age, that is provided by a person or organization
2
qualified, approved, and authorized to provide the care by the state agency or agencies designated
3
to make the determinations in accordance with the provisions set forth herein.
4
(f)(1) Families with incomes below one hundred percent (100%) of the applicable federal
5
poverty level guidelines shall be provided with free child care. Families with incomes greater than
6
one hundred percent (100%) and less than two hundred percent (200%) of the applicable federal
7
poverty guideline shall be required to pay for some portion of the child care they receive, according
8
to a sliding-fee scale adopted by the department in the department’s rules, not to exceed seven
9
percent (7%) of income as defined in subsection (h) of this section.
10
(2) Families who are receiving childcare assistance and who become ineligible for
11
childcare assistance as a result of their incomes exceeding
two hundred sixty-one percent (261%)
12
two hundred eighty-five percent (285%)
of the applicable federal poverty guidelines shall continue
13
to be eligible for childcare assistance until their incomes exceed
three hundred percent (300%)
three
14
hundred twenty-five percent (325%)
of the applicable federal poverty guidelines. To be eligible,
15
the families must continue to pay for some portion of the child care they receive, as indicated in a
16
sliding-fee scale adopted in the department’s rules, not to exceed seven percent (7%) of income as
17
defined in subsection (h) of this section, and in accordance with all other eligibility standards.
18
(g) In determining the type of child care to be provided to a family, the department shall
19
take into account the cost of available childcare options; the suitability of the type of care available
20
for the child; and the parent’s preference as to the type of child care.
21
(h) For purposes of this section, “income” for families receiving cash assistance under §
22
40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in
23
§§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned and
24
unearned income as determined by departmental regulations.
25
(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast
26
the expenditures for child care in accordance with the provisions of § 35-17-1.
27
(j) In determining eligibility for childcare assistance for children of members of reserve
28
components called to active duty during a time of conflict, the department shall freeze the family
29
composition and the family income of the reserve component member as it was in the month prior
30
to the month of leaving for active duty. This shall continue until the individual is officially
31
discharged from active duty.
32
(k) Effective from August 1, 2023, through July 31,
2028
2030
, the department shall
33
provide funding for child care for eligible childcare educators, and childcare staff, who work at
34
least twenty (20) hours a week in licensed childcare centers and licensed family childcare homes
LC004412/SUB A - Page 3 of 10
1
as defined in the department’s rules and regulations. Eligibility is limited to qualifying childcare
2
educators and childcare staff with family incomes up to three hundred percent (300%) of the
3
applicable federal poverty guidelines and will have no copayments.
This protective service group
4
shall continue to be eligible for childcare assistance until their incomes exceed three hundred
5
twenty-five percent (325%) of the applicable federal poverty guidelines.
Qualifying participants
6
may select the childcare center or family childcare home for their children. The department shall
7
promulgate regulations necessary to implement this section, and will collect applicant and
8
participant data to report estimated demand for state-funded child care for eligible childcare
9
educators and childcare staff. The report shall be due annually to the governor and the general
10
assembly by November 1.
11
SECTION 2. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child
12
Care — State Subsidies" is hereby amended to read as follows:
13
40-6.2-1.1. Rates established.
14
(a) Through June 30, 2015, subject to the payment limitations in subsection (c), the
15
maximum reimbursement rates to be paid by the departments of human services and children, youth
16
and families for licensed childcare centers and licensed family childcare providers shall be based
17
on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted for the
18
average of the 75th percentile of the 2002 and the 2004 weekly market rates:
19
Licensed Childcare Centers 75th Percentile of Weekly Market Rate
20
Infant $182.00
21
Preschool $150.00
22
School-Age $135.00
23
Licensed Family Childcare Providers 75th Percentile of Weekly Market Rate
24
Infant $150.00
25
Preschool $150.00
26
School-Age $135.00
27
Effective July 1, 2015, subject to the payment limitations in subsection (c), the maximum
28
reimbursement rates to be paid by the departments of human services and children, youth and
29
families for licensed childcare centers and licensed family childcare providers shall be based on the
30
above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the average of
31
the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be increased by
32
ten dollars ($10.00) per week for infant/toddler care provided by licensed family childcare
33
providers and license-exempt providers and then the rates for all providers for all age groups shall
34
be increased by three percent (3%). For the fiscal year ending June 30, 2018, licensed childcare
LC004412/SUB A - Page 4 of 10
1
centers shall be reimbursed a maximum weekly rate of one hundred ninety-three dollars and sixty-
2
four cents ($193.64) for infant/toddler care and one hundred sixty-one dollars and seventy-one
3
cents ($161.71) for preschool-age children.
4
(b) Effective July l, 2018, subject to the payment limitations in subsection (c), the
5
maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of
6
human services and children, youth and families for licensed childcare centers shall be
7
implemented in a tiered manner, reflective of the quality rating the provider has achieved within
8
the state’s quality rating system outlined in § 42-12-23.1.
9
(1) For infant/toddler child care, tier one shall be reimbursed two and one-half percent
10
(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above
11
the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY
12
2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018 weekly
13
amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018 weekly
14
amount.
15
(2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half
16
percent (2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)
17
above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY
18
2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018
19
weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018
20
weekly amount.
21
(c) [Deleted by P.L. 2019, ch. 88, art. 13, § 4.]
22
(d) By June 30, 2004, and biennially through June 30, 2014, the department of labor and
23
training shall conduct an independent survey or certify an independent survey of the then-current
24
weekly market rates for child care in Rhode Island and shall forward the weekly market rate survey
25
to the department of human services. The next survey shall be conducted by June 30, 2016, and
26
triennially thereafter. The departments of human services and labor and training will jointly
27
determine the survey criteria including, but not limited to, rate categories and sub-categories.
28
(e) In order to expand the accessibility and availability of quality child care, the department
29
of human services is authorized to establish, by regulation, alternative or incentive rates of
30
reimbursement for quality enhancements, innovative or specialized child care, and alternative
31
methodologies of childcare delivery, including nontraditional delivery systems and collaborations.
32
(f) Effective January 1, 2007, all childcare providers have the option to be paid every two
33
(2) weeks and have the option of automatic direct deposit and/or electronic funds transfer of
34
reimbursement payments.
LC004412/SUB A - Page 5 of 10
1
(g) Effective July 1, 2019, the maximum infant/toddler reimbursement rates to be paid by
2
the departments of human services and children, youth and families for licensed family childcare
3
providers shall be implemented in a tiered manner, reflective of the quality rating the provider has
4
achieved within the state’s quality rating system outlined in § 42-12-23.1. Tier one shall be
5
reimbursed two percent (2%) above the prevailing base rate for step 1 and step 2 providers, three
6
percent (3%) above prevailing base rate for step 3 providers, and four percent (4%) above the
7
prevailing base rate for step 4 providers; tier two shall be reimbursed five percent (5%) above the
8
prevailing base rate; tier three shall be reimbursed eleven percent (11%) above the prevailing base
9
rate; tier four shall be reimbursed fourteen percent (14%) above the prevailing base rate; and tier
10
five shall be reimbursed twenty-three percent (23%) above the prevailing base rate.
11
(h) Through December 31, 2021, the maximum reimbursement rates paid by the
12
departments of human services, and children, youth and families to licensed childcare centers shall
13
be consistent with the enhanced emergency rates provided as of June 1, 2021, as follows:
14
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
15
Infant/Toddler $257.54 $257.54 $257.54 $257.54 $273.00
16
Preschool Age $195.67 $195.67 $195.67 $195.67 $260.00
17
School Age $200.00 $200.00 $200.00 $200.00 $245.00
18
The maximum reimbursement rates paid by the departments of human services, and
19
children, youth and families to licensed family childcare providers shall be consistent with the
20
enhanced emergency rates provided as of June 1, 2021, as follows:
21
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
22
Infant/Toddler $224.43 $224.43 $224.43 $224.43 $224.43
23
Preschool Age $171.45 $171.45 $171.45 $171.45 $171.45
24
School Age $162.30 $162.30 $162.30 $162.30 $162.30
25
(i) Effective January 1, 2022, the maximum reimbursement rates to be paid by the
26
departments of human services and children, youth and families for licensed childcare centers
27
shall be implemented in a tiered manner, reflective of the quality rating the provider has achieved
28
within the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be
29
reimbursed as follows:
30
Licensed Childcare Centers
31
Tier One Tier Two Tier Three Tier Four Tier Five
32
Infant/Toddler $236.36 $244.88 $257.15 $268.74 $284.39
33
Preschool $207.51 $212.27 $218.45 $223.50 $231.39
34
School-Age $180.38 $182.77 $185.17 $187.57 $189.97
LC004412/SUB A - Page 6 of 10
1
The maximum reimbursement rates for licensed family childcare providers paid by the
2
departments of human services, and children, youth and families is determined through collective
3
bargaining. The maximum reimbursement rates for infant/toddler and preschool age children paid
4
to licensed family childcare providers by both departments is implemented in a tiered manner that
5
reflects the quality rating the provider has achieved in accordance with § 42-12-23.1.
6
(j) Effective July 1, 2022, the maximum reimbursement rates to be paid by the departments
7
of human services and children, youth and families for licensed childcare centers shall be
8
implemented in a tiered manner, reflective of the quality rating the provider has achieved within
9
the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be
10
reimbursed as follows:
11
Licensed Childcare Centers
12
Tier One Tier Two Tier Three Tier Four Tier Five
13
Infant/Toddler $265 $270 $282 $289 $300
14
Preschool $225 $235 $243 $250 $260
15
School-Age $200 $205 $220 $238 $250
16
(k) Effective July 1, 2024, the maximum reimbursement rates to be paid by the departments
17
of human services and children, youth and families for licensed childcare centers shall be
18
implemented in a tiered manner, reflective of the quality rating the provider has achieved within
19
the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be
20
reimbursed as follows:
21
Licensed Childcare Centers
22
Tier One Tier Two Tier Three Tier Four Tier Five
23
Infant/Toddler $278 $284 $296 $303 $315
24
Preschool $236 $247 $255 $263 $273
25
School-Age $210 $215 $231 $250 $263
26
(l) Effective July 1, 2025, the maximum reimbursement rates to be paid by the departments
27
of human services and children, youth and families for licensed childcare centers shall be
28
implemented in a tiered manner, reflective of the quality rating the provider has achieved within
29
the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be
30
reimbursed as follows:
31
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
32
Infant $334 $341 $355 $364 $378
33
Toddlers $278 $284 $296 $303 $315
34
Preschoolers $236 $247 $255 $263 $273
LC004412/SUB A - Page 7 of 10
1
School Age $210 $215 $231 $250 $263
2
(m) Effective July 1, 2026, the maximum reimbursement rates to be paid by the
3
departments of human services and children, youth and families for licensed childcare centers shall
4
be implemented in a tiered manner, reflective of the quality rating the provider has achieved within
5
the state's quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be
6
reimbursed as follows:
7
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
8
Infant
$351
$358
$373
$382
$397
9
Toddlers
$278
$284
$296
$303
$315
10
Preschoolers
$236
$247
$255
$263
$273
11
School Age
$210
$215
$231
$250
$263
LC004412/SUB A - Page 8 of 10
1
SECTION 3. Section 1 of this act shall take effect after January 1, 2027, except for the
2
provisions of § 40-5.2-20(c) which shall take effect July 1, 2026. Section 2 of this act shall take
3
effect July 1, 2026.
========
LC004412/SUB A
========
LC004412/SUB A - Page 9 of 10
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND WORKS PROGRAM--
RHODE ISLAND CHILD CARE IS ESSENTIAL ACT
***
1
This act would increase the income limit for eligible families from two hundred sixty-one
2
percent (261%) to two hundred eighty-five percent (285%) of the federal poverty level (FPL)
3
beginning January 1, 2027, and would increase the exit threshold from three hundred percent
4
(300%) to three hundred twenty-five percent (325%). This act would also increase the
5
reimbursement rates for infants by five percent (5%).
6
Section 1 of this act would take effect after January 1, 2027, except for the provisions of §
7
40-5.2-20(c) which would take effect July 1, 2026. Section 2 of this act would take effect July 1,
8
2026.
========
LC004412/SUB A
========
LC004412/SUB A - Page 10 of 10