2025 -- H 5321

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LC000523

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILD CARE FOR ALL ACT

     

     Introduced By: Representatives Cruz, Diaz, Kislak, Ajello, Morales, Messier, Sanchez,
Potter, Giraldo, and Speakman

     Date Introduced: February 05, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Legislative findings.

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     (1) High-quality and affordable child care is critical to supporting children and families

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throughout Rhode Island and ensuring a functioning labor market and economy in the state.

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     (2) Providing universal access to affordable, quality child care will address staffing

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shortages across the economy, can reduce state government expenditures in other areas such as

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Medicaid and food assistance, and will increase tax revenue as parents of young children are able

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to stay in the workforce and earn incomes.

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     (3) Child care in the United States is currently a broken market, with the cost of care being

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both too expensive for many families who need it to afford and the wages of child care educators

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being too low to attract and retain skilled staff.

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     (4) To create a child care system that supports our Rhode Island families, workers, and

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economy we must recognize that child care is a public good akin to kindergarten through grade

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twelve (K-12) education. This means assisting families to be able to choose sustainable, quality

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child care for their children and supporting child care providers, centers, family child care homes,

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and child care educators to be able to provide high-quality care.

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     (5) According to a September 2021 report from the US Department of the Treasury, one

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out of every one hundred ten (110) U.S. workers and one out of every fifty-five (55) working

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women works in the early education and child care sector.

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     (6) The U.S. Department of Health and Human Services has established clear guidelines

 

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for establishing whether child care is affordable, which state that families should pay no more than

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seven percent (7%) of their family income towards child care. Using that standard, most families

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with young children in Rhode Island require assistance to afford child care.

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     SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 6.7

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RHODE ISLAND CHILD CARE FOR ALL ACT

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     40-6.7-1. The office for early learning.

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     (a) By April 1, 2026, the executive branch shall produce a report outlining the costs and

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staffing requirements to create an office for early learning (the "office") and describing the

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transition plan for how responsibilities previously managed by other departments shall be

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transferred to the office.

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     (b) Effective June 30, 2027, the office for early learning shall be established within the

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executive branch of state government, to serve as the principal agency for managing a statewide

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early learning system. The office shall have the following powers and duties in accordance with

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the following schedule:

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     (1) On or about June 30, 2027, to assume functions related to early childcare set forth in

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chapter 12 of title 42, to be transferred from the department of human services, including the

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administration of the child care assistance program, the quality rating and improvement system for

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child care and early learning programs, and child care licensing;

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     (2) The Rhode Island head start collaboration office shall be transferred to the office for

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early learning.

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     (3) On or about June 30, 2027, to assume functions related to pre-kindergarten set forth in

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chapter 87 of title 16, to be transferred from the department of education;

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     (4) On or before December 1, 2027, to provide the senate and house of representatives a

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comprehensive study of the existing early childhood education infrastructure, a review of roles,

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functions, and programs of the office for early learning, and a workforce training plan in

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collaboration with the department of labor and training and the department of education; and

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     (5) To be responsible for the development, sustainability and continuous improvement of

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a mixed-delivery system of high-quality, accessible and affordable child care for children from

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infancy through age twelve (12), as well as free, high-quality, accessible pre-kindergarten for

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children ages three (3) and four (4).

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     (c) The department of administration shall furnish the office with suitable offices and

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telephone service in the state house, state office building, or some other convenient location, for

 

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the transaction of its business.

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     40-6.7-2. Direct support to child care providers program.

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     (a) The office for early learning shall establish programs of annual funding to early

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education and care providers to meet the full range of costs of high quality early education and care

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to the extent that fees, whether subsidized or unsubsidized, charged for the children receiving early

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education and care services do not meet these costs. This funding shall be used to address the

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following priorities:

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     (1) Expanding affordability of early education and care to families by reducing the

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percentage of early education and care costs that must be covered by fees charged for children

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receiving early education and care, whether subsidized or unsubsidized.

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     (2) Enabling early education and care providers to provide high-quality early education and

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care and to comply fully with all applicable health, safety, educational, quality-assurance, and other

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requirements imposed by the office consistent with this chapter to ensure the well-being and

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promote healthy development and learning of children.

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     (3) Ensuring all early education and care providers are able to attract and retain qualified

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and skilled educators for children from birth through kindergarten entry with compensation that is

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competitive with similarly qualified kindergarten through grade twelve (K-12) staff by providing

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resources through wage supplements or other strategies. Early education and care providers

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receiving funding shall ensure that the compensation of the educators they employ is in line with

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the benchmarks set by the early educator and care provider compensation task force as set forth in

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this section.

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     (4) Maintaining and increasing the supply of early education and care spaces in ways that

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address shortages in available spaces related to: location within the state, child age range, adequate

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staffing and supports to achieve best practices for serving children with developmental delays and

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disabilities, ability to promote the development of children who are multilingual learners, and

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ability to provide care during nonstandard hours.

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     (5) Enabling early education and care providers to address emergency situations, during

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which the cost of care significantly increases due to additional federal, state, or office requirements,

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or the loss of fees due to absence or unenrollment jeopardizes early education and care providers'

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ability to retain their facilities and staff.

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     (6) Enabling early education and care providers to maintain or increase capacity to provide

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direct services and to partner with early intervention programs and local school districts to ensure

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children from birth through kindergarten entry who have developmental delays and disabilities

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have access to high-quality services required under the federal Individuals with Disabilities

 

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Education Act. Additional services that early care and education providers shall be supported to

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provide enrolled children and their families, can also include social work services, health and

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mental health services, and other supports for families, parents, and caregivers.

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     (b) The office for early learning shall conduct regular cost of care surveys by which the

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rates paid to early education and care providers shall be determined. The rate determination shall

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be based in part on the recommendations of the early educator and care provider compensation task

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force, as set forth in this section, to allow providers to meet the compensation benchmarks outlined

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by the task force.

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     (c) The office for early learning shall require early education and care providers to meet

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conditions for receiving funding under this section, including to:

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     (1) Provide data that the office for early learning requires, as needed to carry out the office's

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assessment and reporting requirements under this chapter;

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     (2) Have a current Rhode Island child care license; and

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     (3) Comply with all requirements of the funding and ensure funds are used solely for

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eligible activities and costs that advance affordability, access, equity, and quality.

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     (d) The office for early learning shall determine the amount of funding to be paid under

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this section to an early education and care provider and shall take into account the following factors:

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     (1) The provider's existing enrollment of children, broken down by age range;

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     (2) Economies of scale, such that smaller providers may have higher costs in some areas

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necessitating proportionately higher funding; and

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     (3) Any variation in costs to the provider due to location within the state.

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     (e) The office for early learning shall establish a program of annual grants to early

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education and child care providers who may apply for the grants to assist with special categories

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of care that present particular challenges to providing at a rate that is affordable to families. The

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types of care eligible for these grants may include infant care, care for children with physical,

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intellectual, or developmental disabilities, and non-traditional hour care.

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     (f) The office for early learning shall accord to the early education and care providers to

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which the office allocates funding under this section a presumption of annual renewal if the

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provider has complied with all requirements and the appropriations for this section are not reduced

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such that renewal of all providers is not possible.

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     (g) In the event of insufficient funding for all eligible early education and care providers,

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the office for early learning shall select providers based on the following criteria:

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     (1) The number of children with physical, developmental, or intellectual disabilities,

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children who are homeless, and children who are at risk for involvement with or in the care of the

 

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department of children, youth and families, currently enrolled with the provider;

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     (2) Whether the provider, if funded, would have the capacity and expertise to serve children

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with developmental delays or disabilities, or children who are multilingual learners or whose

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parents or caregivers have limited English proficiency;

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     (3) Whether the provider, if funded, would have the capacity and expertise to serve children

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and families with physical, developmental, or intellectual disabilities as defined by statute, children

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who are homeless, and children who are at risk for involvement with or in the care of the department

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of children, youth and families;

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     (4) Whether the provider, if funded, would increase services in locations within the state

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that have shortages of spaces for particular age groups, such as infants and toddlers, or that have

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overall shortages of early education and care spaces or unmet needs for nonstandard hours of care;

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and

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     (5) Whether the provider, if funded, would implement a proposed quality improvement

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plan or other innovations that increase the quality of its early education and care services.

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     (h) The office for early learning shall adopt rules and regulations implementing the

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provisions of the section, after providing the opportunity for public comment, to be accepted

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through both testimony at public hearings and written comments, and after consideration of these

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comments.

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     40-6.7-3. Child care assistance -- Family income definitions.

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     (a) For purposes of this section, "income" for families receiving cash assistance under §

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40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in

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§§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3). Income for families applying for or receiving low-income

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child care shall mean gross earned income minus a twenty percent (20%) disregard applied to the

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earnings of each adult family member. Earnings of a child under age eighteen (18) years shall not

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be counted. Income shall also include unearned income subject to exclusions as determined by

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office regulations.

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     (b) In determining eligibility for child care assistance for children of members of reserve

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components called to active duty during a time of conflict, the office shall freeze the family

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composition and the family income of the reserve component member as it was in the month prior

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to the month of leaving for active duty. This freeze shall continue until the individual is officially

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discharged from active duty.

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     40-6.7-4. Elements of expanded assistance program.

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     (a) Families whose income is at or below fifty percent (50%) of the Rhode Island state

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median income shall not be charged any copayments for subsidized early education and child care.

 

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Copayments for families who are not eligible for fully subsidized early education and care child

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care shall not exceed seven percent (7%) of the family's total income.

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     (b) The early education and care assistance program shall provide funding for child care

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assistance to enable all families to afford and access high quality early education and care for

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infants, toddlers, preschool-age, and school-age children; provided that, a school-age child's

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assistance shall continue until at least the end of the school year in which the child reaches the

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maximum age.

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     (c) Funding for child care assistance may be used for early education and care provided by

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entities that are licensed by the State of Rhode Island.

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     (d) The office for early learning shall allocate funding to increase the numbers of families

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receiving assistance in stages, in accordance with the following income range priorities:

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     (1) By June 30, 2028, the office for early learning shall allocate funding to fully subsidize

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the cost of early education and care services to all families in need of these services whose income

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is at or below fifty percent (50%) of the state median income and to all families who are

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experiencing homelessness or who are headed by a parent under age twenty (20);

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     (2) By June 30, 2029, the office for early learning shall fully subsidize the cost of early

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education and care services to all families in need of these services, whose income is above fifty

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percent (50%), but not exceeding one hundred percent (100%), of the Rhode Island state median

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income, with any family fee set in accordance with subsection (f) of this section;

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     (3) By June 30, 2030, the office for early learning shall fully subsidize the cost of early

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education and care services to all families in need of these services, whose income is above one

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hundred percent (100%), but not exceeding two hundred percent (200%), of the Rhode Island state

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median income, with any family fee set in accordance with subsection (f) of this section;

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     (e) Provided that additional funds shall be made available to the state through general

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revenue, restricted receipt accounts, or if the federal government shall otherwise obligate itself to

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release additional funding not available upon the effective date of this chapter, the office shall

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allocate funding to increase the numbers of families receiving assistance based on income eligibility

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in accordance with the following income range priorities:

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     (1) First priority: to fully subsidize the cost of early education and care services to all

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families in need of these services, whose income is at or below three hundred percent (300%) of

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the Rhode Island state median income, with any family fee set in accordance with subsection (f) of

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this section;

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     (2) Second priority: to fully subsidize the cost of early education and care services to all

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families in need of these services, whose income is above three hundred percent (300%), but not

 

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exceeding four hundred percent (400%), of the Rhode Island state median income, with any family

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fee set in accordance with subsection (f) of this section;

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     (3) Third priority: to fully subsidize the cost of early education and care services to all

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families in need of these services, whose income is above four hundred percent (400%), but not

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exceeding five hundred percent (500%), of the Rhode Island state median income, with any family

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fee set in accordance with subsection (f) of this section; and

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     (4) Fourth priority: to subsidize the cost of early education and care services to all families

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in need of these services, whose income is above five hundred percent (500%) of the Rhode Island

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state median income, with any family fee set in accordance with subsection (f) of this section.

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     (f) Family copayment amounts for all children of a family with children enrolled in

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qualifying early education and care services shall be determined in accordance with the family's

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gross income. Copayments may not be determined per each child enrolled in early education and

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care services.

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     (1) Beginning June 30, 2028, a family receiving subsidized child care from an early

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education and care provider with an income greater than fifty percent (50%) of the Rhode Island

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state median income shall be required to pay a co-payment as follows:

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A family with a gross household income of this % Shall pay a maximum of this % of

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of the Rhode Island state median income for that gross income for co-payment

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      family size

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0% - 50% 0%

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50% - 75% 1%

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75% - 100% 2%

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     (2) Beginning June 30, 2029, a family receiving subsidized child care from an early

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education and care provider with an income greater than fifty percent (50%) of the Rhode Island

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state median income shall be required to pay a co-payment as follows:

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A family with a gross household income of this % Shall pay a maximum of this % of

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of the Rhode Island state median income for that gross income for co-payment

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      family size

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0% - 50% 0%

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50% - 75% 1%

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75% - 100% 2%

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100% - 125% 3%

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125% - 150% 4%

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150% - 175% 5%

 

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175% - 200% 6%

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More than 200% 7%

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     (g) Family income, for the purposes of eligibility for early education and care assistance

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shall include income of parents living with the child receiving subsidized care, excluding any form

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of income of legal guardians, foster parents, caregivers, or other adult family members; income of

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or for siblings who are not receiving subsidized care; or earned income of any minor child.

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     (h) The office for early learning shall subsidize early education and care by:

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     (i) Providing vouchers for payment to providers, enabling families to access early

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education and care providers of their choice; and

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     (ii) Offering families the alternative of an open space with a provider that is subsidized

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under the provider's agreement with the office.

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     (i) The office for early learning shall require early education and care providers, as a

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condition for receiving grants from the office under this section, to enter into and comply with

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licensing requirements with the office, developed by the office and requiring the provider to comply

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with all applicable requirements of this chapter and any other federal or state requirements

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necessary to receive funding for grants provided to families under this section.

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     (j) The office for early learning and its agents shall not reduce, terminate, or deny continued

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assistance to families until and unless the family is determined to be ineligible and is given the

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opportunity for an administrative appeal hearing.

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     (k) With regard to protection for families currently eligible for assistance, but in lower

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priority category for expansion of the childcare assistance program. The office for early learning

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shall not terminate or deny continued assistance on the grounds of ineligibility based on income to

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families who were receiving subsidized early education and care as of the effective date of this

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section, as long as the family's income does not exceed two hundred percent (200%) of Rhode

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Island state median income.

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     (l) The office for early learning shall not terminate or deny continued assistance on the

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grounds of ineligibility based on income to families who began receiving assistance under this

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section, as long as the family's income does not exceed two hundred percent (200%) of Rhode

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Island state median income. The office may create a formula for adjusting assistance to taper for

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incomes beyond two hundred percent (200%) of Rhode Island state median income.

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     (m) The office for early learning shall review the early education and care assistance

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program at least annually to identify access barriers to families, including, but not limited to,

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linguistic barriers, office paperwork, and verification requirements, and shall take action to remove

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access barriers, including by technological improvements to enable management of larger numbers

 

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of families applying for and receiving assistance and by ongoing improvement of families'

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experiences in dealing with the office and its agents. The office shall submit an annual report with

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its findings to the governor and general assembly.

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     (n) The office for early learning shall adopt any additional rules and regulations necessary

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to implement the provisions of this section, after providing the opportunity for public comment, to

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be accepted through both testimony at public hearings and written comments, and after

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consideration of these comments.

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     40-6.7-5. Establishment of compensation structure needed to attract and retain

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quality educators.

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     (a) The office for early learning shall convene an early educator and care provider

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compensation task force to study the issue of compensation structure for provider staff involved in

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the direct education and care of children that is commensurate with annual pay scales for equivalent

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teacher positions in the public school system, taking into account: job responsibilities; contractual

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requirements; and the skills, experience, and credentials of the individual.

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     (b) The task force shall recommend compensation guidelines for other provider staff not

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involved in the direct education or care of children that are competitive in the labor market for such

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staff, enabling providers to maintain stable staffing.

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     (c) The task force shall recommend guidelines for the minimum required benefits, and for

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recommended additional benefits, for provider staff, including, but not limited to, health insurance,

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retirement benefits, paid vacation, and other leave time.

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     (d) The office for early learning may adopt rules and regulations implementing the

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recommendations of the task force, after providing the opportunity for public comment, to be

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accepted through both testimony at public hearings and written comments, and after consideration

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of these comments.

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     (e) The office for early learning's structure and guidelines shall not preclude provider staff

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from exercising any rights they may have to collective bargaining about pay and benefits.

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     (f) The office for early learning shall review the compensation structure and benefits

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guidelines annually and update them, as needed, based on increased cost of living.

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     40-6.7-6. Creation of a public childcare option pilot program.

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     The office for early learning may develop innovative child care programs, options, or

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approaches that increase access, equity, and affordability for families, including, but not limited to,

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developing and operating a public child care option. The office for early learning shall develop a

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pilot program for a public child care option by June 30, 2029.

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     SECTION 3. This act shall take effect on January 1, 2026.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILD CARE FOR ALL ACT

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     This act would establish the Rhode Island Child Care for All Act which would provide

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high quality and affordable child care to families throughout the state. This act would establish the

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office for early learning which would assume certain functions of the departments of human

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services and education as it relates to early childcare such as the administration of child care

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assistance program, the quality rating and improvement system for child care and early learning

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programs, and child care licensing. The office for early learning would further be responsible to

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establish programs for annual funding to early education and care providers to cover any shortage

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of the costs of high quality early education and care. This act would further expand eligibility to

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families throughout the state for child care payment assistance.

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     This act would take effect on January 1, 2026.

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