EEC proposes targeted FY26 CCFA rate increases, prioritizing preschool and Northeast boosts
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Summary
The Department of Early Education and Care proposed using a $20 million fair-share supplemental appropriation for a combination of a small across-the-board increase and targeted cost-of-care adjustments intended to raise preschool rates to at least 100% of cost-of-care and reduce regional disparities, with a formal vote expected next month.
The Board of Early Education and Care reviewed the agency’s proposal to allocate a $20 million appropriation toward childcare financial assistance (CCFA) rate increases for fiscal 2026.
Agency leaders said the package combines a modest across-the-board boost with targeted, data-driven adjustments. Amy Chekaway, deputy commissioner for policy, strategy and research, described the plan as a continuation of the agency’s multi-year move to set rates based on cost-of-care estimates rather than market tuition alone. “This proposal that we're putting forth, this afternoon is a continuation of that work,” she said.
Eric Hansen, the agency’s chief financial officer, framed the legal and fiscal context: the $20 million comes from a fair-share supplemental appropriation directed explicitly to both center-based and family childcare providers. He told the board the state has invested roughly $250 million since FY2019 to close the gap between reimbursement and the cost of care and that higher caseloads (approximately 70,000 children now vs. 50,000 earlier) mean the same dollar amount must be spread more widely.
Ashley White, EEC research director, summarized findings from EEC’s cost studies and regional analyses and said preschool rates have fallen below 100% of estimated cost of care in several regions. “Our goals when we look at this proposal is get the preschool rates to at least a 100% of the cost of care,” she said, noting that Northeast and Metro Boston preschool rates were a particular focus because the distance between rates and costs there is larger than in peer regions.
Staff described two components: a small across-the-board adjustment (a half percentage point that averages roughly $0.40 per day) and targeted cost-of-care adjustments focused on preschool and selected regional/tiered rates. The team emphasized the proposal is incremental and part of a multi-year plan to move rates toward full cost coverage.
Board members asked detailed questions about how the one-time appropriation interacts with base funding and annualization. EEC staff explained that temporary increases become part of the base funding the following year for budgeting purposes and that caseload growth and annualization complicate projections.
The board did not take a final vote. Staff said they intend to return in February with a formal vote so the adjustment can be implemented retroactively to July 1, 2025 if approved.
Ending: The board scheduled further consideration at its February meeting, with staff continuing analyses of annualization, family childcare system contracts, and targeted regional impacts.
