Bill
A 1001
Automatically adjusts child care subsidy reimbursements to current market rates, boosting provider stability and expanding access for families using assistance.
Status: Assembly Bill A1001 — PRINT NUMBER 1001D (introduced Jan 8, 2025; latest print 1001D, 5/28/2025)
Primary sponsor: Assemblymember Sarah Clark; cosponsors include Judy Griffin, John T. McDonald III, MaryJane Shimsky, Jo Anne Simon, Monique Chandler‑Waterman, Dana Levenberg, Jessica Gonzalez‑Rojas, Carrie Woerner, Maritza Davila, Rebecca Kassay, John Zaccaro Jr., Rodneyse Bichotte Hermelyn, Micah Lasher, Jen Lunsford, and others.
Companion bill: S4472 (Senate)
Purpose / intent
- To ensure child care providers who participate in publicly funded child care assistance programs receive periodic reimbursement increases that reflect current market rates for child care.
- The intent is to reduce the gap between subsidy reimbursement rates and private‑pay market prices, supporting provider financial stability, increasing supply and quality of care, and improving access for families who rely on assistance.
Key provisions (overview based on bill title and available legislative materials)
- Establishes an automatic mechanism that adjusts child care assistance reimbursement rates to align with prevailing market rates for child care services.
- Requires regular updates to the maximum reimbursement rates (for example, annually or after each market rate survey), rather than relying solely on discrete legislative or administrative changes.
- Assigns responsibility to the appropriate State agency (commonly the Office of Children and Families or equivalent) to determine current market rates, implement the adjustments, notify providers, and publish updated rate schedules.
- May include provisions to protect families’ co‑payment levels (i.e., increases would not raise family costs) and to phase in increases where necessary to control budgetary impacts.
- Likely includes reporting requirements on cost, implementation, and impacts on provider participation and family access.
Who would be affected
- Child care providers who accept public child care assistance (providers would generally see higher, more predictable reimbursements).
- Low‑ and moderate‑income families receiving child care assistance (potential for improved access and continuity of care; protections may prevent increased out‑of‑pocket costs).
- State and local budgets (automatic increases can raise the program’s fiscal obligation; fiscal impact depends on the adjustment formula and funding sources).
Fiscal and operational considerations
- Automatic market‑based increases typically raise program costs and may require recurring state (and possibly federal or local) funding. The exact fiscal impact depends on the adjustment formula, frequency, and baseline reimbursement levels.
- Administrative tasks include conducting or relying on market rate surveys, updating payment schedules, provider outreach, and fiscal planning for anticipated increases.
Procedural history (selected)
- 2025‑01‑08: Referred to Children and Families Committee
- 2025‑02‑07: Printed as A1001A; amended and recommitted to Children and Families
- 2025‑04‑29: Reported and referred to Ways and Means
- 2025‑05‑15 through 05‑28: Multiple amendments and prints (A1001B, A1001C, A1001D); most recent actions on 2025‑05‑28: amended (T) and recommitted to Ways and Means; print 1001D issued.
Notes and recommended next steps
- The summary above is based on the bill title and legislative history provided; the complete bill text (A1001D) contains the specific legal language, formulas, effective dates, and any fiscal‑control measures. Review A1001D text and accompanying fiscal memorandum for precise rate formulas, implementation timelines, and estimated budget impact before drawing conclusions or preparing testimony.
Compiled from official sources — confirm details with the bill’s official record.
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