After a fiscally unpredictable start to 2025 with a looming deficit to close and fluctuating financial markets the California State Legislature enacted all significant budget bills including the initial 2025 Budget Act, SB 101, AB 102 Budget Bill Jr., SB 120 Early Care and Education Trailer Bill, and AB 118 Human Services Trailer Bill. The final budget provided long-term solutions to close its projected $12 Billion deficit while avoiding major cuts to core early care and learning and family well-being programs and services. Funding levels for CCRC’s core services and programs remain stable, however funding for child care voucher slots did not increase, thereby leaving our agency to tend to its growing waitlist for child care services.
The most significant ongoing cut to children’s programs in this budget included a $30 million reduction to the Emergency Child Care Bridge Program, leaving it with a total ongoing funding level of $63.7 million annually. The budget was finalized before the Child Care Providers United Union (CCPU) reached a tentative agreement for their new MOU with the state and before the final Alternative Methodology rate setting process has been accomplished for the single rate structure for all subsidized child care providers. As such, any increases in child care provider rates were made by adding percentage increases to ongoing rate enhancements, not to the base rate itself.
Notably, the current budget does not factor in the impact of the recently passed federal budget cuts in the reconciliation package titled H.R. 1, which will heavily impact the health, food and economic security of thousands of Californians. The Newsom Administration promises continued monitoring and evaluation of the impacts of the federal measure and anticipates working with the State Legislature to make any needed changes to the current budget.
To read the key investments for ECE and family well-being programs in the 25-26 state budget, view the full report below.
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