Senate panel reviews May revision childcare changes including one-year COLA suspension and bridge reallocation

The Senate Budget Subcommittee No. 3 on Health and Human Services on May 20 reviewed the administration’s May Revision proposals for early learning and child care funding, which include a one-year suspension of the 2025–26 cost-of-living adjustment, changes to the Emergency Child Care Bridge program for children in foster care, and funding for rate reform and automation to implement a single rate structure.

"The May revision includes $6,800,000,000 total funds in 2024–25 for child care," Jennifer Troia, director of the Department of Social Services (CDSS), told the committee. She described a package of changes included in the May Revision and introduced Department of Finance and CDSS staff to answer follow-up questions.

Why it matters: the May Revision is the administration’s plan to close an estimated $12 billion budget shortfall; its child care proposals would preserve current provider reimbursement rates while cutting identified budgeted COLA funding and reallocating other child care resources. The changes would affect subsidized child care payments and programs targeted to foster children and other prioritized groups statewide.

Key proposals and figures presented to the committee

- COLA suspension: The administration proposes to suspend the childcare COLA for 2025–26, producing $60,700,000 in ongoing General Fund savings. The suspension would mean the state does not add the COLA to baseline funding in 2025–26; because COLA increases normally become part of the baseline, the administration counted the savings as ongoing.

- Emergency Child Care Bridge program: The May Revision would reduce General Fund support for the Bridge program by $42,700,000 in 2025–26 and ongoing, while maintaining…