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Early learning changes in proposed budgets would delay entitlements, reduce slots and alter childcare subsidy eligibility
Summary
DCYF officials described proposed changes to early learning programs including a delayed ECAP entitlement, adjustments to Working Connections eligibility and copay rules, reductions in trauma‑informed and mental‑health consultation funding, and facility and slot changes under competing House and Senate budgets.
The Department of Children, Youth, and Families outlined multiple early learning policy and budget changes introduced in this year’s House and Senate proposals, including delayed entitlement timing, altered subsidy eligibility for some child‑care employees, reductions to program slots and funding, and differing chamber choices on rate increases.
“Eligibility expansion to 75% SMI for Working Connections childcare was slated to come online in July of 2026. That has been delayed to July of 2029,” Allison Lisonbee Kreutzinger, director of public affairs, said. She also summarized bills affecting eligibility and program funding.
DCYF staff said Senate Bill 5752 (as passed in the Senate) would remove an employee eligibility category that currently allows child‑care employees to qualify for Working Connections up to 85 percent of state median income with a waived copay; as a result, about 300 child‑care employees could lose eligibility because they would fall above the 65 percent SMI threshold under the Senate bill, DCYF said. The Senate bill also eliminates eligibility for registered apprenticeships and proposes changes to family co‑payments, including a per‑child copay calculation beginning in October 2026.
Both the House and Senate budgets propose delaying the ECAP (Early Childhood Education and Assistance Program) entitlement that was planned to begin next school year; DCYF said the chambers assume the entitlement will be delayed until the 2030–31 school year in their budget language. DCYF also told attendees both budgets would remove or reduce funding for early ECAP slots (about 78 slots), with an estimated 70–80 children losing those early ECAP placements.
Programmatic reductions differ by chamber: the Senate eliminates trauma‑informed care enhancement for center‑based providers (retaining funding for family child‑care providers where items are collectively bargained), reduces infant and early childhood mental‑health consultation toward pre‑Fair Start levels, and removes dual‑language designations for center‑based providers. The House reduces complex‑needs and other program funding but retains some rate increases and collective‑bargaining funding for family child‑care providers represented by SEIU 925.
DCYF also said rate increases for Working Connections center‑based rates (moving to the 85th percentile of the 2024 market‑rate survey) are delayed until July 1, 2026, and the House would eliminate the “hold harmless” clause for a small number of providers paid above the 85th percentile. Capital investments supporting early learning facilities were noted in the Department of Commerce budgets for both chambers.
DCYF said it will analyze final provisos and rec. sums when the legislature completes action and will post the webinar recording and slides.
