It’s Week 4 of legislative session and the impacts of the proposed supplemental budget are becoming clear. Notably, the House and Senate proposed budgets both include significant and disproportionate cuts to vital early learning programs.
In this issue we want to share with you more information on the reductions the legislature is proposing for the Working Connections Child Care (WCCC) subsidy.
What is the Working Connections Child Care Subsidy?
Working Connections Child Care – otherwise referred to as WCCC – is a WA state-funded subsidy that currently helps over 40,000 Washington families afford child care. To qualify, families must make less than 60% of the average of Washington income and be working or furthering their education.
This financial assistance allows families to stay employed and/or go to school to advance their careers and achieve financial stability. Without it, many parents and caregivers risk losing their jobs or being forced to quit school.
What Reductions Are Being Proposed?
Through a combination of the proposed supplemental budget bills (HB 2289 / SB 5998) and a bill specific to revisions to the subsidy (HB 2689) there are a number of changes being proposed to the WCCC subsidy to achieve budget savings.
First, the bills would cap the number of households that can receive the subsidy. This means:
- Putting a cap on the number of households which can receive the subsidy at 33,000.
- Pausing accepting new applications to the program between July 1, 2026 through December 31, 2026 (except for families engaged in the child welfare system).
- Starting January 1, 2027, requiring an average monthly caseload cap of 33,000 families (with child welfare involved families exempt from this cap).
In addition, the bills would reduce the reimbursement rate for providers from 85% of the Market Rate Value to 75%, effective July 1, 2026.
What Will Be the Impact?
These reductions will have a devastating impact on families being able to afford and access childcare, and on providers to be able to afford to support families receiving the subsidy.
Current projections anticipate 44,000 families will qualify for the subsidy starting in June 2026. This would mean approximately 11,000 families would be unable to apply and receive the subsidy if the current reductions go through.
And for those who do receive the subsidy, less will be covered by the state – meaning more coming out of households budgets or out of the pockets for child care providers.
Stay Engaged – We Need YOU to Take Action!
The first fiscal cutoff for this session is next Monday, February 9. Be in the lookout for Action Alerts over the next few days on our social channels and via email to advocate for preserving and protecting this vital subsidy that keeps WA families learning and working.
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