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CaliforniaSB 1512025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 6 benefits, 0 costs, 4 mixed.

Higher pay for childcare centers

Centers receive a monthly per‑child payment tied to region. From Jan 1, 2024 to Jun 30, 2025, rates are $140 to $211 per child each month. Starting Jul 1, 2025, the state raises these amounts by a Finance‑set percentage, with floors at $152 (central), $154 (northern), $174 (southern), $186 (Los Angeles), and $230 (Bay Area).

Higher pay for family childcare

Family childcare providers get a new monthly “cost‑of‑care plus” payment per child. From Jan 1, 2024 to Jun 30, 2025, rates by region and license range from $98 to $211 per child each month. Beginning Jan 1, 2026, or the date the one‑time payment is made, these monthly rates rise to $107 to $230 per child, depending on region and license.

How state preschool contracts get paid

For 2022–23, state preschool contractors are paid the lesser of 100% of the contract maximum or net program costs when open per the approved calendar or closed by COVID public orders. From Jul 1, 2023 to Jun 30, 2025, and again Jul 1, 2025 to Jun 30, 2026, pay stays at the lesser of the contract maximum or net costs if programs stayed open and serving certified children. Beginning Jul 1, 2026, payment becomes the smallest of: the contract maximum, net costs, or adjusted child‑days of enrollment times the contract rate. Family childcare home education network providers are paid on maximum certified hours (regardless of attendance) from Jan 1, 2023 through Jul 1, 2028, less allowable admin expenses.

Training, health, and retirement funds

Once the child care union agreement is ratified, the state can add money to worker benefit funds. From Jul 1, 2025 to Jul 1, 2028, it may restore the Training Fund up to $15 million and the Retirement Trust up to $80 million within 90 days of each annual report, with Finance approval. The state may also add money to the Workers Health Care Fund based on annual reports and Finance approval. Agencies must give budget committees 30 days’ notice before each contribution.

One-time payments to stabilize providers

Providers paid in April 2025 get a one‑time per‑child stabilization payment. Licensed family childcare providers get $431 per child; license‑exempt get $300. Centers get $431 per child, based on April 2025 enrollment. The Department of Finance also sets a separate one‑time payment for July–December 2025 months. If the August 7, 2025 agreement is ratified by Sep 30, 2025, these are due by Jan 1, 2026; if late, extra per‑child amounts are added each month until paid.

State funds to support provider payments

The state sets aside $88.55 million in 2025–26 so providers are paid based on families’ certified need. It also provides $157.852 million for one‑time stabilization payments to family childcare providers and centers. These funds are available to encumber through June 30, 2026.

Pay by need and new paperwork

Alternative payment programs must pay providers based on families’ certified hours of need. For variable schedules and license‑exempt part‑time care, pay uses actual days and hours up to the certified maximum. From Jul 1, 2025 through Jul 1, 2028, providers are paid on the maximum authorized hours regardless of attendance across many state childcare programs. Providers must keep a monthly record with daily in/out times and a monthly parent and provider signature under penalty of perjury. You may submit without a parent signature after seven days of no contact if you notify and attempts are documented. Keep records in their original form; contractors do not have to track provider absences.

Distance learning for closed preschools

If a state preschool is closed due to COVID‑19 but funded to operate, it must offer distance learning. The program must file a distance learning plan following the Superintendent’s guidance. This keeps learning services available to enrolled children during closures.

Faster contracting and processing fees

Agencies can award contracts to distribute these childcare funds without the usual state contracting rules or reviews. Contractors that process payments get a 10% fee on monthly payments and 5% on one‑time stabilization payments. After Jun 30, 2025, the 10% applies only to certain monthly amounts.

Union agreements can override some rules

If a union agreement for child care providers conflicts with certain payment sections, the agreement controls. Any agreement terms that spend money still need approval in the annual state Budget Act.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 121 • No: 17

Senate vote • 9/12/2025

Item 107 — Senate SFLOOR

Yes: 29 • No: 0

House vote • 9/11/2025

Item 150 — Assembly AFLOOR

Yes: 64 • No: 7

Senate vote • 3/20/2025

Item 85 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 108, Statutes of 2025.

    9/17/2025Senate

  2. Approved by the Governor.

    9/17/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/15/2025legislature

  4. Assembly amendments concurred in. (Ayes 29. Noes 0. Page 2953.) Ordered to engrossing and enrolling.

    9/12/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/12/2025Senate

  6. Read third time. Passed. (Ayes 64. Noes 7. Page 3322.) Ordered to the Senate.

    9/11/2025House

  7. Ordered to third reading.

    9/10/2025House

  8. Withdrawn from committee.

    9/10/2025House

  9. Assembly Rule 96 suspended. (Ayes 56. Noes 19. Page 3164.)

    9/10/2025House

  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    9/8/2025House

  11. Referred to Com. on BUDGET.

    3/24/2025House

  12. In Assembly. Read first time. Held at Desk.

    3/20/2025House

  13. Read third time. Passed. (Ayes 28. Noes 10. Page 447.) Ordered to the Assembly.

    3/20/2025Senate

  14. Read second time. Ordered to third reading.

    3/18/2025Senate

  15. Ordered to second reading.

    3/17/2025Senate

  16. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate

  17. Referred to Com. on B. & F. R.

    2/5/2025Senate

  18. From printer. May be acted upon on or after February 23.

    1/24/2025Senate

  19. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    9/17/2025

    HTML

  • Enrolled

    9/12/2025

    HTML

  • Amended Assembly

    9/8/2025

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  • Introduced

    1/23/2025

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