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AB 2314

Childcare: alternative payment program: report.

2025-2026 Regular Session Introduced by Sade Elhawary and 3 co-sponsors

AB 2314 improves APP funding by streamlining inter-provider transfers, boosting fiscal oversight, and protecting family continuity and transparency in childcare funding.

Referred to Com. on HUMAN S.
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Bill Summary · AB 2314

Summary of AB 2314 (2025-2026) – California Childcare: Alternative Payment Program: Report

Purpose and intent

AB 2314, introduced by Assembly Member Rogers, seeks to enhance the management of California’s subsidized childcare system (Child Care and Development Services Act) by improving funding transfers between alternative payment program (APP) providers, strengthening fiscal oversight, and promoting continuity of care for families. The bill emphasizes full and timely use of funds, reduces disruptions to families (including siblings), and increasing transparency around program funding and utilization.

Key provisions and changes

  • Transfers between providers (new process)

    • Establishes a written request process for APPs to transfer funds between providers.
    • The Department of Social Services (DSS) must respond in writing within 30 days and share the response with the local childcare planning council.
    • The written response must include the DSS determination and the general basis for it.
    • DSS can deny a transfer only if verified documentation shows no overenrollment or other service obligations exist for the relevant fiscal year.
    • DSS may implement guidance on enrollment maximization, fiscal alignment, and continuity of care after consulting with contractors and stakeholders.
    • DSS may use all-county letters, bulletins, or similar directives to implement these provisions ahead of regulations.

  • Fiscal management and oversight

    • Reforms to require periodic fiscal reviews each fiscal year to identify projected overexpenditures and underexpenditures and to promote full utilization of funds.
    • Introduction of fiscal projection methodologies (multiyear eligibility, cross-fiscal-year enrollment, attrition assumptions, etc.).
    • Authority to authorize use of unexpended funds in a subsequent fiscal year if attributable to prior-year certified families.
    • DSS must publish a summary of childcare funds allocated and expended annually (by September 1) to the Legislature, the Department of Finance, and on its website.

  • Continuity of care and enrollment protections

    • Prohibits disenrollment, transfer to another contractor, or separation of siblings solely due to enrollment balancing when a family remains eligible (e.g., a newly eligible child added within the same eligibility period).
    • If a family is actively enrolled, DSS cannot move them to a different contractor or service area unless both the current and prospective contractors agree in writing.
    • DSS must ensure fiscal monitoring and enrollment practices do not disrupt siblings or active services if funds are sufficient.

  • Public reporting and transparency

    • Requires a publicly accessible record of voluntary transfer requests, including timelines, aggregate amounts, and program impacts, in line with confidentiality requirements.

  • Implementation and timeline

    • Provides authority to implement provisions via administrative tools before formal regulations are adopted.
    • Requires annual reporting and a public summary of program funding and expenditures.

Who is affected

  • State Department of Social Services (DSS): administrative authority to approve/deny transfers, conduct fiscal reviews, publish funding summaries.
  • Local contracting agencies and APP contractors: participate in transfer requests, engage in planning, and align enrollment practices.
  • Families and children using APP-funded childcare: benefit from improved continuity of care and protections against unnecessary disruptions (e.g., sibling separation).
  • Local childcare planning councils and statewide networks: receive copies of transfer determinations and contribute to guidance development.
  • Legislators and the public: gain enhanced transparency about childcare funding and utilization.

Procedural/timeline notes

  • Written transfer determinations within 30 days of request.
  • Annual reporting cycle: September 1 deadline for statewide funding and expenditure summaries.
  • Possible initial implementation via all-county letters or bulletins pending regulations.

Overall, AB 2314 aims to improve financial flexibility within APPs while safeguarding continuity of care and increasing transparency in how childcare funds are allocated and spent.

Compiled from official sources — confirm details with the bill’s official record.

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