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Board approves increases to family, friend and neighbor childcare reimbursement rates
Summary
The Board of Early Education and Care voted to implement FY27 increases that align and raise family, friend and neighbor (FFN) reimbursement rates to a uniform $27.80, a change staff said will cost about $1 million; public commenters urged broader support for informal caregivers.
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The Board of Early Education and Care on June 1 voted to implement an agency proposal to align and raise informal child care reimbursement rates for family, friend and neighbor (FFN) providers.
Staff research director Ashley White told the board the department proposes to simplify existing FFN rates, boost the highest FFN rate by about $10 and bring other FFN rates into alignment so that both primary FFN rate lines would equal $27.80. The department estimated the adjustment would require about $1 million in additional funding. After brief discussion, the board approved the motion to implement FY27 child care financial assistance rate increases by voice vote.
Why it matters: FFN caregivers provide culturally familiar, flexible care for families working nontraditional hours and for households seeking linguistically competent options. Advocates who testified said improving FFN rates advances equity and compensates chiefly unpaid or underpaid caregivers.
What supporters said: At public comment, Dr. Natalisa Tracy of the Care That Works coalition urged the board to back the 13% increase under consideration and to create an FFN advisory committee to ensure the policy reflects caregiver needs. Family child care provider Ann Osula urged the board to press for funding to prevent provider closures and to stabilize access for families.
Staff context and implementation: Department staff framed the change as part of a broader policy goal—treating early childhood as an experience rather than privileging settings—and said the rate alignment is one step in several family‑facing reforms (including the family portal and a new FFN advisory group) planned over coming years. The staff presentation noted the change would be implemented within the FY27 child care financial assistance framework and that the department will monitor voucher utilization and administrative capacity after the change.
Next steps: The department will operationalize the new rates in its payment systems and monitor family choices and voucher utilization; staff said they will report back to the board on impacts and on the work of the forthcoming FFN advisory committee.
Board vote and procedure: The motion to approve implementation of the FY27 rate changes passed by voice vote during the meeting; the record shows a formal motion and second with the presiding chair calling the voice vote and announcing the motion passed.

