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Bill

SB 311

Children: child care; adjustments of reimbursements under the child development care program for inflation; require. Creates new act.

2025-2026 Regular Session Introduced by Rosemary Bayer

Michigan bill requiring automatic inflation-adjusted reimbursement rates for state-subsidized child care providers to maintain program access and provider viability.

referred to Committee on Families and Veterans
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Bill Summary · SB 311

Legislative bill overview

SB 311 would create a new mechanism to automatically adjust reimbursement rates for child care providers participating in Michigan's child development care program based on inflation. This addresses how the state compensates licensed child care facilities that serve low-income families through state subsidies.

Why is this important

Child care provider reimbursement rates significantly impact both the affordability of care for families and the viability of child care businesses. When rates don't keep pace with inflation, providers may reduce services, lower quality, or exit the market entirely—ultimately limiting access to care for vulnerable families and affecting parental workforce participation.

Potential points of contention

  • Cost to state budget: Automatic inflation adjustments create open-ended spending obligations that could strain Michigan's budget, particularly during economic downturns when state revenue declines
  • Adequacy of adjustment mechanism: The bill's effectiveness depends on whether inflation adjustments truly reflect actual cost increases providers face (labor, utilities, supplies) or whether they're insufficient
  • Equity concerns: Questions about whether adjusted rates will actually improve child care worker wages and working conditions, or primarily increase provider profits

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

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