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DCYF outlines 2025–27 implementation plan, details ECAP slot cuts and timing for rate and eligibility changes
Summary
Department of Children, Youth, and Families staff told the Early Learning Advisory Council that implementation of 2025–27 budget changes will include a $60 million ECAP slot reduction spread across contractors, eligibility and rate timing adjustments, plus pauses or reductions to some provider supports.
The Department of Children, Youth, and Families (DCYF) staff presented a detailed implementation update for the 2025–27 biennium to the Early Learning Advisory Council on Aug. 5, describing slot reductions to the Early Childhood Education and Assistance Program (ECAP), changes to subsidy eligibility and timing for rate adjustments.
DCYF program manager Nicole (last name not specified in transcript) said, “ECAP had a reduction of $60,000,000 over the biennium,” and described how the agency spread mandated slot reductions across contractors to preserve statewide coverage. She said 46 of 62 ECAP contractors were affected and that the department applied remaining reductions proportionally after honoring voluntary exchanges and keeping slots in prioritized catchment areas.
Why it matters: ECAP is the state-funded prekindergarten program. Cuts to slots and changes to eligibility and payment timing affect how many children can receive state-funded preschool and how providers plan for enrollment and budgets.
Key implementation points and timelines - ECAP slot reductions: DCYF calculated a biennial reduction of $60 million and removed about 3,000 slots applied across slot types; the agency reported FY25 proviso-level slots at 17,278 and said final FY26 contracts put out 14,395 slots. - School‑day slots: DCYF will award 250 new school‑day slots for the 2026–27 school year and said the award process will likely prioritize existing contractors rather than a large open RFA. - Rate timing: DCYF will implement a center‑based rate increase on July 1, 2026; it also said a 5% FY26 increase for school‑based ECAP slots was included in contracts already. - Hold‑harmless/savings: Some hold‑harmless protections for providers will be removed for providers above the 80th percentile of 2024 market rates, yielding savings the agency must capture. - Eligibility and co‑payment timing: Changes to Working Connections eligibility were noted — an increase in the eligibility threshold to 75% of state median income will be implemented on July 1, 2029; family co‑payments remain unchanged for the current year and related copay changes are set for Oct. 1, 2026. DCYF estimated that switching to a 12‑month eligibility determination (from the prior authorization model) could be implemented as early as March 2026 but may not occur until March 2027 because of data system sequencing and testing requirements.
Provider supports and program changes - Family child care: DCYF said collective bargaining implementation for family family child care providers is on track and that enrollment in health care increased by 177 licensed family home providers after the bargaining‑related changes. - Early ECAP and other grants: Funding for early ECAP (a pre‑K layer) was eliminated; DCYF removed early ECAP slots accordingly. Tribal early learning grants (TELP) were not funded in the 2025 session, so staff said they are working with the Office of Tribal Relations to prioritize tribal programs in other funding streams when possible. - Pauses/reductions: The agency paused trauma‑informed care enhancement awards for licensed family homes (funding for center‑based enhancements was eliminated July 1, 2025). Funding for dual‑language designation for center providers was reduced beginning July 1, 2025; DCYF said it will identify options to support providers who had expressed interest. - Complex needs and mental health consultation: DCYF reported it has distributed complex‑needs funds to eligible ECAP contractors but noted reductions in infant and early childhood mental health consultation capacity and said details on wait lists and who can access services will be provided in future updates.
Implementation mechanics and constraints DCYF staff repeatedly emphasized the need to sequence data‑system changes (for example, enabling 12‑month eligibility determinations before switching to prospective or enrollment‑based payments). Jason (eligibility staff; transcript role not fully specified) described training eligibility workers to avoid toggling the expanded eligibility flags in the system as an interim manual workaround until automated changes are deployed.
What DCYF did not decide here DCYF said it will not submit a decision package to increase special‑needs rates in this supplemental cycle because of budget constraints, though staff acknowledged the policy need and said they are exploring less costly ways to simplify access to Level‑1 special‑needs supports.
What to expect next DCYF said the agency will continue to provide implementation updates and to post contract and guidance materials on the ELAC website. Staff invited ELAC members and providers to request deeper briefings on specific pieces of implementation (for example, impact of reduced mental‑health consultation capacity or the school‑day slot award approach).
Sources and attributions: presentation and discussion led by DCYF staff (Nicole and Melissa Cheeseman) during the ELAC meeting.
Ending note: DCYF framed most items as implementation sequencing and described several policies as contingent on future system deployments or legislative funding. The council did not take any formal action on these items at the meeting.
