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A 3451

Requires DHS to establish quality-based reimbursement system for registered family child care providers participating in Grow NJ Kids.

2026-2027 Regular Session Introduced by Clinton Calabrese and 5 co-sponsors

A-3451 ties enhanced, tiered reimbursements to Grow NJ Kids ratings for registered family child care providers in the subsidized program, boosting quality incentives.

Introduced, Referred to Assembly Children, Families and Food Security Committee
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WeVote Research Nonpartisan
Bill Summary · A 3451

Bill Summary: A-3451 (Session 222, New Jersey)

Title

Requires DHS to establish a quality-based, enhanced reimbursement system for registered family child care providers participating in Grow NJ Kids.

Purpose and Intent

  • To provide enhanced (tiered, quality-based) reimbursements to registered family child care providers who:
    • participate in New Jersey’s subsidized child care assistance program, and
    • are rated under the Grow NJ Kids quality improvement initiative.
  • The goal is to align payment rates with quality performance to support higher-quality child care and ensure continued access to federal funding for subsidized programs for eligible families.

Key Provisions

1) Enhanced Reimbursements for Eligible Providers
- The Commissioner of Human Services must provide enhanced reimbursements to:
- Family child care providers registered under P.L.1987, c.27 (C.30:5B-16 et seq.).
- Providers who participate in the State’s subsidized child care assistance program.
- Providers who are rated in Grow NJ Kids (the State’s quality and improvement system).

  • The enhanced payments must be made under the existing tiered, quality-based reimbursement system established by Grow NJ Kids.

2) State Plan Amendments and Federal Participation
- The Commissioner must apply for any State plan amendments or waivers needed to:
- Implement the quality-based reimbursement system for eligible providers, and
- Continue to secure federal financial participation for subsidized child care programs for qualified low-to-moderate income households.

3) Administrative Rulemaking
- The Commissioner of Human Services shall adopt rules and regulations as necessary to implement the act, in accordance with the Administrative Procedure Act.

4) Effective Date
- The act takes effect immediately upon enactment.

Who Is Affected

  • Eligible providers:

    • Registered family child care providers (per state law governing family child care registration).
    • Providers participating in the State’s subsidized child care assistance program.
    • Providers rated within the Grow NJ Kids quality framework.

  • State agencies:

    • New Jersey Department of Human Services, Division of Family Development (or its successor), which administers child care subsidies and Grow NJ Kids.

  • Families:

    • Low-to-moderate income families that rely on subsidized child care assistance may benefit from improved quality and stability in provider payments.

Timeline and Procedural Aspects

  • Introduction: January 13, 2026
  • Committee: Referred to Assembly Children, Families and Food Security Committee

  • Effective Date: Immediate upon enactment

  • Administrative actions required:

    • DHS to pursue necessary state plan amendments or waivers with federal partners to authorize enhanced reimbursements and preserve federal funding.
    • DHS to issue regulatory amendments to implement the new payment structure under Grow NJ Kids.

Potential Impacts

  • Provider-Level:

    • Potential increase in reimbursement rates for eligible registered family child care providers based on Grow NJ Kids tier ratings.
    • Incentive for providers to pursue quality improvements and achieve higher Grow NJ Kids ratings.

  • Family/Access-Level:

    • May improve access to high-quality, affordable child care for families relying on subsidized care.

  • Fiscal/Policy-Level:

    • Requires coordination with federal funding programs and potential waivers/amendments to align state plan with the new reimbursement model.
    • May influence overall performance metrics within Grow NJ Kids and the subsidized care program.

Summary

A-3451 seeks to reward quality in the family child care sector by linking enhanced, tiered reimbursements to Grow NJ Kids ratings for providers participating in the subsidized child care program. It directs DHS to pursue the necessary federal plan amendments and to implement related regulations, with immediate effect upon enactment. The bill aims to strengthen incentives for quality improvement while ensuring continued federal funding for low- to moderate-income families.

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

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