Bill
SB 2667
The act creates a unified Rhode Island childcare subsidy program with expanded eligibility, updated market-rate-based rates, and free care for the lowest-income families to support
Jurisdiction: Rhode Island | Session: 2026 | Introduced: February 27, 2026 | Referred to: Senate Finance
Purpose
- Establish a unified framework for Rhode Island’s childcare subsidies under a new statute, the Rhode Island Childcare Is Essential Act.
- Expand eligibility to cover a larger share of low- and moderate-income families and ensure access to affordable, high-quality childcare to support parental workforce participation and economic security.
- Update and consolidate existing Rhode Island Works childcare provisions into a single act, with updated payment rates and funding for workforce-focused childcare.
Key Provisions and Changes
1) Legislative Findings (Section 1)
- Affordability and quality of childcare are essential for labor force participation and economic productivity.
- Highlights wage gaps and under-compensation for childcare workers; cites federal guidelines for “equal access” and affordability (7% of income cap for co-pays; 75th percentile market-rate standard for subsidies).
- Cites the presence of federal funding (Child Care and Development Block Grant) and a push to align Rhode Island with federal affordability and access benchmarks.
2) New Chapter: 40-6.7 Rhode Island Childcare Is Essential Act (Section 2)
- 40-6.7-1. Childcare assistance eligibility
- All participants eligible for cash assistance must receive appropriate childcare to meet work requirements.
- Low-income families (<= 85% of state median income) qualify for assistance if they require it for work, training, or related activities; includes eligibility for higher-education enrollment.
- Liquid resources cap: $1,000,000 for family/assistance unit assets (excludes certain accounts). Department may set rules on joint accounts.
- Cooperation with state in establishing paternity and child support orders is required unless good cause is shown.
- Definition of “appropriate childcare” includes infant, toddler, preschool, nursery school, and school-age care provided by qualified providers.
- Free childcare for families at or below 100% of federal poverty guidelines; sliding-fee scale (up to 7% of income) for those above 100% up to 85% of state median income (and beyond 85% to 100% as applicable).
- Department must consider cost, suitability, and parent preference when selecting childcare type.
- Income definition uses gross earned and unearned income per regulations.
- Special provisions for active-duty reservists’ family income composition during deployment.
40-6.7-1.1. Childcare educator/staff funding (Aug 1, 2026 – Jul 31, 2028)
40-6.7-2. Childcare assistance – Rates
3) Repeal of 40-5.2-20 (Section 3)
- Repeals a portion of the Rhode Island Works program governing childcare assistance, effectively moving policy to the new 40-6.7 framework and aligning income eligibility and support provisions with the new act.
4) Repeal/Consolidation of 40-6.2-1.1 (Section 4)
- Repeals an older rate-setting section, consolidating into the new rate framework under 40-6.7, ensuring consistency with updated market-rate and equal-access targets.
5) Effective Date (Section 5)
- The act takes effect July 1, 2026.
Who Would Be Affected
- Low- to moderate-income families seeking childcare assistance (up to 85% of state median income; extendable to 100% depending on eligibility and program rules).
- Families with child care needs related to work, job training, higher education enrollment, apprenticeships, or other work-readiness activities.
- Licensed childcare centers and licensed family childcare homes (providers) subject to updated rate schedules, tier-based payments, and potential incentives for quality improvements.
- Childcare educators and staff who work at least 20 hours per week, with new state-funded support for those with incomes up to 300% of the federal poverty level for a defined period (2026–2028).
Timelines and Procedures
- July 1, 2026: New rate schedule, eligibility expansion, and basic framework take effect.
- August 1, 2026 – July 31, 2028: Targeted funding window for childcare educators/staff with no copays (Section 1.1).
- June 30, 2027: Independent market-rate survey must be conducted and posted; ongoing triennial cycles thereafter.
- Annual reporting due by November 1: Report on demand for state-funded childcare for eligible educators/staff.
Notes
- The act emphasizes aligning Rhode Island’s childcare subsidies with federal guidelines for affordability and equal access.
- It consolidates and modernizes prior provisions, expands eligibility, and introduces a data-driven rate-setting methodology tied to a quality rating system.
Compiled from official sources — confirm details with the bill’s official record.
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