State readies fall market-rate survey and cost-of-quality analysis that could change subsidy rates

The Department of Children, Youth, and Families (DCYF) told providers at a July provider-supports subcommittee meeting that it will deploy the 2025 market-rate survey on Oct. 1 and keep it open for three months, with a final report due to the legislature by June 1, 2026.

The survey will collect what child-care providers charge in private markets by region, age group and provider type, and will also update non‑personnel cost data such as rent, mortgage and utilities. The data are the basis for the Working Connections Child Care subsidy base rates that the state pays providers.

Why it matters: the legislature instructed DCYF to run the survey every two years and to use market-rate data in setting base rates, but federal rules allow an alternative method — a “cost of quality care” approach — and the state has federal approval to switch if the legislature authorizes it. DCYF said it will gather data this fall that could support either approach.

On why the survey matters to providers, Matt Judge, DCYF’s federal…