SB 150 Early Care and Education Budget Trailer Bill

Dear Members,

This session, your voices shaped state policy. Several priorities EveryChild California carried into the 2026-27 budget process made it into SB 150, the primary Early Care and Education budget trailer bill now heading to the Governor for signature. We are proud to have advanced these wins alongside you.

Our Advocacy in Action

Three proposals we championed will be law (pending the Governor’s signature):

• Expanding neighborhood eligibility: Families who work within a qualifying attendance boundary are now eligible for CSPP, not just those who reside there. This is a meaningful change that EveryChild California has been working on for several years. 

• 22,770 new subsidized child care spaces: The budget includes 20,700 new California Alternative Payment Program spaces and 2,070 new General Child Care and Development Program spaces. Expanding the supply of subsidized care has been a core EveryChild California priority, and this investment reflects sustained advocacy from our members.

• Streamlining CSPP priorities: New provisions clarify and strengthen CSPP eligibility and continuity, including 24-month continuous-eligibility protections that reduce disruption for families and administrative burden on programs.

Additional Budget Highlights

The 2026-27 budget and SB 150 also include significant changes across reimbursement rates, family fees, health and safety requirements, and child care infrastructure. Key provisions include:

• Reimbursement Rates (CSPP and CDSS Programs)

  • The statutory Cost-of-Living Adjustment (COLA) for both California State Preschool Program (CSPP) and CDSS-administered subsidized child care programs is suspended for the 2026-27 fiscal year, marking the fourth consecutive year without a traditional COLA.

  • Beginning July 1, 2026, providers will instead receive an increase through the monthly Cost of Care Plus (CoCP) payment. The Department of Finance will determine the final per-child increase based on the funding that would have been generated by the statutory 2.009% COLA. Rumors are that this will be around 15%

  • Resource and Referral Programs (R&Rs) and Local Planning Councils (LPCs) will receive the full 2.009% COLA directly.

  • The Regional Market Rate survey cycle is also extended from every two years to every three years.

• Eligibility Expansions (CSPP Programs)

  • SB 150 expands eligibility for the California State Preschool Program by:

  • Adding children of local educational agency (LEA) employees, including school districts, county offices of education, and community college districts, as eligible for both part-day and full-day CSPP.

  • Explicitly making families participating in a CalWORKs work activity eligible for full-day CSPP.

  • Expanding neighborhood eligibility to include families who work within, in addition to those who reside within, a qualifying attendance boundary.

  • 24-Month Continuous Eligibility (CSPP Programs)

  • The bill strengthens family stability by clarifying that 24-month continuous eligibility remains in place when:

    • A child transfers to another CSPP program.

    • A family voluntarily disenrolls and later returns during the eligibility period.

    • A child temporarily leaves a program.

    • Income at initial enrollment now determines eligibility throughout the certification period, regardless of subsequent increases in family income. Families are no longer required to report income increases during the eligibility period.

  • The California Department of Education must issue implementation guidance through Management Bulletins by January 1, 2027, and begin formal rulemaking by December 31, 2028.

• Family Fees (CSPP and CDSS Subsidized Child Care Programs)

  • Beginning January 1, 2027:

    • Contractors must reimburse providers for the full certificate or voucher amount without deducting family fees.

    • Contractors will collect family fees directly from families.

    • CDSS will provide technical assistance to support implementation.

    • The family fee exemption for families receiving child protective services is revised from 12 months to one certification period.

• Staff Development Days (CSPP Programs)

  • CSPP contractors may now schedule up to five staff development days per contract period, an increase from the current limit of two days.

• Emergency and Disaster Planning (Licensed Child Care Facilities)

  • Beginning January 1, 2027, licensed child care facilities must maintain a comprehensive written emergency and disaster plan that includes evacuation procedures, lockdown protocols, shelter-in-place procedures, a 72-hour self-reliance plan, relocation sites, reunification procedures, utility shutoff information, and family communication plans.

  • Facilities must train staff upon hire and annually, conduct quarterly emergency drills, review and update the plan each year, and maintain access to facility keys during emergencies.

• Health and Safety Training (Licensed Child Care Facilities)

  • The required 15-hour health and safety training is expanded to include all child care staff providing direct services, every family child care home licensee, and substitute adults in family child care homes.

  • Beginning January 1, 2028, all covered staff must complete 12 hours of annual continuing education in topics including emergency preparedness, building safety, safe sleep, medication administration, infectious disease prevention, food allergies, transportation safety, and hazardous materials.

• Medication Administration (Licensed Child Care Facilities)

  • Licensed child care providers may administer all medications, rather than only inhaled medications, when written instructions from a health care provider are provided.

• Anaphylaxis Policy (Licensed Child Care Facilities)

  • Beginning January 1, 2028, compliance with the statewide CDSS anaphylaxis policy becomes mandatory for all licensed child care facilities. Facilities must also provide annual notification of the policy to families upon enrollment.

• Family Child Care Homes

  • SB 150 establishes new statewide requirements governing substitute adults in family child care homes, including limitations on licensee absences, parent notification requirements, reporting absences to CDSS, and expanded training requirements for substitute adults.

• Mandated Reporter Training (Licensed Child Care Facilities)

  • The exemption for individuals with limited English proficiency is eliminated. All licensed providers, administrators, applicants, and employees must complete mandated reporter training regardless of their primary language.

• Fraud Prevention and Program Integrity (CDSS Programs)

  • The bill requires contractors to adopt formal fraud-prevention and program-integrity policies, terminate eligibility when substantiated fraud invalidates a certification, and comply with expanded CDSS oversight and enforcement authority.

• Infrastructure and Disaster Relief (CDSS Programs)

  • Beginning July 1, 2027, CDSS may reserve up to 15% of slot expansion funding for facility readiness, infrastructure improvements, and minor repairs.

  • The bill also establishes a new disaster infrastructure grant program for child care facilities impacted by state or federally declared disasters and appropriates $25.7 million in federal funding to support recovery from disasters occurring during 2023 and 2024.

Key Implementation Dates

July 1, 2026

• Cost of Care Plus reimbursement increases begin.

• New CSPP eligibility provisions become effective.

January 1, 2027

• Family fee collection changes take effect.

• Emergency and disaster planning requirements become effective.

• California Department of Education implementation guidance on continuous eligibility is due.

July 1, 2027

• CDSS authority to reserve slot expansion funds for infrastructure and readiness begins.

January 1, 2028

• Annual continuing education requirements begin.

• Mandatory compliance with the statewide anaphylaxis policy begins.

EveryChild California will continue to monitor implementation of SB 150 and provide members with Management Bulletin summaries, implementation guidance, and additional resources as state agencies release more information.

If you have questions about how these changes may affect your program, please contact the EveryChild California Policy Team, advocacy@everychildca.org.