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EEC proposes higher, simplified reimbursement for informal child care — $27.80/day recommended
Summary
EEC staff proposed aligning and raising informal (family, friend, neighbor) child care reimbursements to $27.80 per day (from much lower current daily rates), funded by roughly $2 million and intended to remove distinctions based on location of care.
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Department staff presented a proposal to simplify and increase reimbursement rates for informal child care (family, friend and neighbor care) that families access through Child Care Financial Assistance (CCFA).
Research Director Ashley White and Deputy Commissioner Tyree Nicholas said the current daily rates for informal care are very low — part‑time rates in the $10–$15 range and typical full‑time rates around $17 — and vary by whether care occurs in a relative’s home or the child’s home. The agency proposed collapsing location‑based distinctions and moving to a single consistent reimbursement of $27.80 per day for eligible informal caregivers.
EEC said the change would be an incremental step toward greater equity and clarity in the continuum of care and estimated the proposal would require roughly $1–2 million in CCFA funds (the agency cited about $2 million in new dollars to support the increase). Staff framed the increase as about a 50% raise for many informal caregivers and emphasized it remains well below licensed family child care rates, which carry more stringent licensing requirements.
The board received data showing 566 children were served through informal CCFA arrangements as of mid‑April; the majority were school‑age (about 372 children). Regional counts were highest in the northeast and western regions. Staff said most families using informal care are income‑eligible and that families choose the option for reasons including scheduling, keeping siblings together and a lack of other after‑school options.
Board members asked whether higher rates would change uptake or shift the location of care, and staff said they will monitor market effects and outreach. EEC plans to present a vote on the proposal at the next board meeting after allowing public comment and additional stakeholder input.

