Press Release  Healey-Driscoll Administration Announces Higher Reimbursement Rates for Child Care Providers

Boston — The Board of Early Education and Care today unanimously voted to approve the Healey-Driscoll Administration’s proposed increases to child care financial assistance reimbursement rates for Fiscal Year 2026 (FY26), reinforcing the state’s ongoing commitment to supporting early education and care providers and strengthening the child care system for families across Massachusetts.

This rate increase invests $20 million to provide a modest across-the-board increase for all providers, along with specific adjustments for providers whose current rates are furthest from the cost of providing care and median private tuition rates. That includes particular attention to some preschool rates and geographic areas where families face some of the greatest barriers to access. The administration recognizes that early education and care providers continue to experience rising costs and remains focused on making progress toward reimbursing providers at the cost of care while also responding to conditions in the broader child care market.

To make child care more affordable, EEC helps to cover tuition costs for eligible families by providing financial reimbursements to early education and care programs that serve children utilizing Child Care Financial Assistance (CCFA). These reimbursements are paid using pre-determined daily rates that are based on a child’s age group, provider region, and program type.

“Affordable, high-quality child care is essential for our children, our families, and our economy. Our Administration has significantly increased rates over the years, and with this latest increase, we’re taking another important step toward covering the real cost of care, so providers can keep their doors open, and families can access the care they need to succeed,” said Governor Maura Healey.

“These rate increases reflect our commitment to building a stronger child care system across Massachusetts,” said Lieutenant Governor Kim Driscoll. “Supporting early education providers means supporting working families and ensuring that parents have real choices when it comes to safe, high-quality care in their communities.”

This year’s rate increases build on the state’s previous investments in CCFA rates, which have increased by $147.5 million since FY23 and represents the latest step in a multi-year, data-driven effort to set rates based on the cost of care. Since 2022, EEC has partnered with external researchers to study the cost of providing care and develop and refine a cost-based alternative methodology for setting CCFA rates. Under this administration, Massachusetts became the sixth state in the country federally approved to move forward with a cost-based alternative methodology when setting rates for child care financial assistance. This has allowed the state to use the cost of care when setting rates for the last three fiscal years and bring all rates closer to the true cost of providing care while addressing long-standing inequities by geographic region and age group of children served.

“Today’s vote marks an important step forward in Massachusetts’ commitment to strengthening our early education and care system,” said Education Secretary Dr. Patrick Tutwiler. “Increasing reimbursement rates shows we are investing in providers and moving forward an effort to make sure the rates reflect the true cost of care.”

“By continuing to move reimbursement rates closer to the true cost of care, we are strengthening provider sustainability, supporting the child care workforce, and helping to ensure families across Massachusetts have access to stable, high-quality care,” said Early Education and Care Commissioner Amy Kershaw

“Higher reimbursement rates mean more dedicated and consistent care for our youngest children, real relief for working families, and fairer compensation for our exceptional providers,” said Senate President Karen E. Spilka (D-Ashland). “The Senate has proudly worked alongside the Healey-Driscoll Administration to continue raising rates to better address the true cost of care, and our entire Commonwealth is better for it. I applaud the administration for taking yet another strong step forward today.”

“Today’s unanimous vote reflects the Board’s strong commitment to a stable, accessible, and high-quality early education and care system,” said Paul Belsito, Chair of the Board of Early Education and Care. “By increasing reimbursement rates and continuing to better align payments with the realities providers face, we are supporting those who serve our most vulnerable children, strengthening the child care workforce, and helping ensure families across Massachusetts can access the care they need.”

This combined approach is intended to support a more equitable distribution of funds across all providers participating in the CCFA program while continuing to monitor market trends to promote equal access to high-quality care for families statewide.

For more information about FY26 reimbursement rates, please visit the EEC website.

Statements of Support

Representative Ken Gordon, House Chair of the Joint Committee on Education:

“I am pleased to see the Board approve these increases, reinforcing the shared the commitment between the Legislature and the Administration to early education and care,” said. “Increasing reimbursement rates for providers is one of the many ways the Commonwealth is strengthening our childcare system and investing in our youngest learners.”

William J. Eddy, Executive Director, Massachusetts Association of Early Education & Care:

“Early education programs that serve low-income and at-risk children through the Department of Early Education & Care rely on rate funding for stability and to fairly compensate our hard-working early educator workforce.  We are appreciative of the leadership of the Massachusetts Legislature and Governor Healey for their strong support of the rate reserve.  Today’s vote on Commissioner Kershaw’s thoughtful implementation plan reflects the ongoing commitment of both the Department and the Board to those programs and their educator workforce.

Kate-Marie Roycroft, Chief Executive Officer, Alliance of Massachusetts YMCAs:

"The Alliance of Massachusetts YMCAs is happy to support the increased rates for subsidy-serving providers across the Commonwealth. The increase in rates is just one of the many tools that the Department of Early Education & Care, the Legislature, and the Massachusetts YMCAs utilize to offer high-quality care and education to the children throughout the state."

Jennifer Aldworth, Executive Director, Massachusetts Alliance of Boys & Girls Clubs:

"The Massachusetts Alliance of Boys & Girls Clubs commends EEC’s efforts to increase CCFA rates. This adjustment is a critical step toward stabilizing the child care workforce, expanding access for working families, and ensuring high-quality early education programs can continue to meet the needs of children across the Commonwealth.”

Carl Howell, Chief Executive Officer, Community Teamwork:

“At a time when providers are navigating increasing operational costs and workforce challenges, aligning rates with the true cost of care is both timely and important. This proposal recognizes those realities by raising Northeast rates and ensuring all providers benefit from an increase—steps that are critical to stabilizing the system and preserving access to quality care for families.”

Amy O’Leary, Executive Director, Strategies for Children:

“We are grateful to the Massachusetts Department of Early Education and Care Board and Commissioner Amy Kershaw for their work to advance a thoughtful and strategic plan to implement the FY26 rate increase.  This plan is possible thanks to the $20 million investment in the FY25 Supplemental Budget passed by the Legislature. This increase reflects an ongoing commitment to supporting access to affordable, high quality child care for families in the Commonwealth. It brings us one step closer to funding the true cost of care and building a more stable system for children, families, and educators.”

 

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