CaliforniaSB 7922025-2026 Regular SessionSenateWALLET

Childcare: state median income threshold.

Sponsored By: Jesse ArreguÃn (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Cuts to child care contract payments

The state reduces the maximum payment on many child care contracts by 11% starting July 1, 2011, or by another cut needed to fit the budget. The department may give smaller cuts to better‑performing contractors or those serving underserved areas. For each program, total cuts must equal 11% or the amount needed to match appropriations, even after the Budget Act is adopted.

More Stage 3 access, lower family fees

CalWORKs recipients can get Stage 3 child care when a funded space is open. Former CalWORKs participants or those who got a lump‑sum diversion can get Stage 3 only if their income is at or below 85% of the state median for their family size. Families getting CalWORKs cash aid do not pay child care family fees. Families served by child protective services or who are at risk of neglect or abuse can be exempt from family fees for up to 24 months.

Who loses child care first

When slots are cut, the state removes families in a set order. First are families with income above 85% of the state median for their family size, except those in child protective services or at risk of neglect or abuse. Next are families below 85% of the median, starting with the highest incomes; ties are broken by how long they have been enrolled. Children in protective services or at risk are last to lose care, and tie rules also consider children with exceptional needs.

Clear rules on part‑time vs full‑time

Part‑time care is fewer than 25 hours a week. Full‑time care is 25 hours or more. These rules take effect no later than March 1, 2024. The department can use letters or bulletins now and must start formal rulemaking by July 1, 2026. If a local agreement conflicts, that agreement controls unless it needs new state spending approved in the Budget Act.

Stage 3 run by state contractors

Stage 3 child care is run by programs that contract with the state. County welfare offices do not run Stage 3 unless they ran similar AFDC services before this law. Counties can run a contracted alternative payment program to serve families referred by child protective services. This changes who families work with to get help.

Sponsors & Cosponsors

Sponsor

Jesse ArreguÃn
Democratic • Senate

Cosponsors

Alex Lee
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 183 • No: 0

Senate vote • 9/11/2025

Item 53 — Senate SFLOOR

Yes: 40 • No: 0

legislature vote • 9/10/2025

Vote in CS74

Yes: 5 • No: 0

House vote • 8/28/2025

Item 153 — Assembly AFLOOR

Yes: 74 • No: 0

legislature vote • 8/20/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/1/2025

Vote in CX11

Yes: 7 • No: 0

Senate vote • 4/24/2025

Item 111 — Senate SFLOOR

Yes: 37 • No: 0

legislature vote • 4/7/2025