Bill Sponsors
DiMario, Lawson, Gallo, Valverde, Murray, Kallman, Acosta, Vargas, Lauria, and Quezada
Committee
Senate Finance
Summary
Select
This legislation amends the Rhode Island Works Program to permanently expand childcare assistance for specific groups. It removes the expiration date for a program that provides childcare funding to eligible childcare educators and staff, effectively making this benefit permanent. The bill reclassifies these workers as a "protected population" with eligibility based on 85% of the state median income rather than the federal poverty level, and eliminates their copayments. Additionally, beginning January 1, 2025, the bill raises the income eligibility limit for families needing childcare assistance to attend public higher education institutions to 261% of the federal poverty level.
Sponsor
Analysis
Pros for Progressives
- Eliminates childcare copayments for eligible childcare educators, directly increasing the take-home pay and financial stability of low-wage workers who are essential to the economy.
- Expands access to higher education by raising the income eligibility limit for childcare assistance for parents attending public colleges, promoting social mobility and workforce development.
- Stabilizes the childcare sector by making benefits for childcare staff permanent rather than temporary, potentially reducing turnover in this critical public service and ensuring consistent care for children.
Cons for Progressives
- Maintains means-testing requirements by capping eligibility at 85% of the state median income, rather than providing universal childcare for all educators regardless of household income.
- Limits the higher education expansion to public institutions only, potentially excluding low-income students attending private non-profit colleges or trade schools who also need support.
- Relies on subsidizing services through government benefits rather than mandating higher living wages for childcare workers, which some may view as a band-aid solution to wage inequality.
Pros for Conservatives
- Requires childcare staff to work at least twenty hours a week to qualify for benefits, ensuring that government assistance is strictly tied to active employment and productivity.
- Utilizes a specific income cap based on the state median income rather than universal eligibility, preventing high-income earners from accessing taxpayer-funded benefits.
- Assists private childcare businesses in retaining staff without imposing direct government wage mandates or interference in business operations.
Cons for Conservatives
- Removes the sunset provision for childcare staff benefits, creating a permanent entitlement program that will burden taxpayers indefinitely without future legislative review.
- Eliminates copayments entirely for a specific class of workers, removing "skin in the game" and potentially encouraging overutilization of services at taxpayer expense.
- Increases the income threshold for college students to receive benefits, significantly expanding the welfare state to middle-income individuals who should be self-sufficient.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Childcare educators
- Childcare staff
- Parents in public higher education
- Childcare center owners
- Low-income families
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to Senate Finance
Bill Text
SECTION 1. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The Rhode Island Works Program" is hereby amended to read as follows:
40-5.2-20. Childcare assistance — Families or assistance units eligible.
(a) The department shall provide appropriate child care to every participant who is eligible for cash assistance and who requires child care in order to meet the work requirements in accordance with this chapter.
(b) Low-income child care. The department shall provide child care to all other working families with incomes at or below two hundred sixty-one percent (261%) of the federal poverty level if, and to the extent, these other families require child care in order to work at paid employment as defined in the department’s rules and regulations. The department shall also provide child care to families with incomes below two hundred sixty-one percent (261%) of the federal poverty level if, and to the extent, these families require child care to participate on a short-term basis, as defined in the department’s rules and regulations, in training, apprenticeship, internship, on-the-job training, work experience, work immersion, or other job-readiness/job-attachment program sponsored or funded by the human resource investment council (governor’s workforce board) or state agencies that are part of the coordinated program system pursuant to § 42-102-11. Effective from January 1, 2021, through June 30, 2022, the department shall also provide childcare assistance to families with incomes below one hundred eighty percent (180%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education provided that eligibility to receive funding is capped when expenditures reach $200,000 for this provision. Effective July 1, 2022 through December 31, 2024, the department shall also provide childcare assistance to families with incomes below two hundred percent (200%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education. Effective January 1, 2025, the department shall also provide childcare assistance to families with incomes below two hundred sixty-one percent (261%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education.
(c) No family/assistance unit shall be eligible for childcare assistance under this chapter if the combined value of its liquid resources exceeds one million dollars ($1,000,000), which corresponds to the amount permitted by the federal government under the state plan and set forth in the administrative rulemaking process by the department. Liquid resources are defined as any interest(s) in property in the form of cash or other financial instruments or accounts that are readily convertible to cash or cash equivalents. These include, but are not limited to: cash, bank, credit union, or other financial institution savings, checking, and money market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual funds; and other similar financial instruments or accounts. These do not include educational savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse. The department is authorized to promulgate rules and regulations to determine the ownership and source of the funds in the joint account.
(d) As a condition of eligibility for childcare assistance under this chapter, the parent or caretaker relative of the family must consent to, and must cooperate with, the department in establishing paternity, and in establishing and/or enforcing child support and medical support orders for any children in the family receiving appropriate child care under this section in accordance with the applicable sections of title 15, as amended, unless the parent or caretaker relative is found to have good cause for refusing to comply with the requirements of this subsection.
(e) For purposes of this section, “appropriate child care” means child care, including infant, toddler, preschool, nursery school, and school-age, that is provided by a person or organization qualified, approved, and authorized to provide the care by the state agency or agencies designated to make the determinations in accordance with the provisions set forth herein.
(f)(1) Families with incomes below one hundred percent (100%) of the applicable federal poverty level guidelines shall be provided with free child care. Families with incomes greater than one hundred percent (100%) and less than two hundred percent (200%) of the applicable federal LC004022 - Page 2 of 5 poverty guideline shall be required to pay for some portion of the child care they receive, according to a sliding-fee scale adopted by the department in the department’s rules, not to exceed seven percent (7%) of income as defined in subsection (h) of this section.
(2) Families who are receiving childcare assistance and who become ineligible for childcare assistance as a result of their incomes exceeding two hundred sixty-one percent (261%) of the applicable federal poverty guidelines shall continue to be eligible for childcare assistance until their incomes exceed three hundred percent (300%) of the applicable federal poverty guidelines. To be eligible, the families must continue to pay for some portion of the child care they receive, as indicated in a sliding-fee scale adopted in the department’s rules, not to exceed seven percent (7%) of income as defined in subsection (h) of this section, and in accordance with all other eligibility standards.
(g) In determining the type of child care to be provided to a family, the department shall take into account the cost of available childcare options; the suitability of the type of care available for the child; and the parent’s preference as to the type of child care.
(h) For purposes of this section, “income” for families receiving cash assistance under § 40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in §§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned and unearned income as determined by departmental regulations.
(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for child care in accordance with the provisions of § 35-17-1.
(j) In determining eligibility for childcare assistance for children of members of reserve components called to active duty during a time of conflict, the department shall freeze the family composition and the family income of the reserve component member as it was in the month prior to the month of leaving for active duty. This shall continue until the individual is officially discharged from active duty.
(k)Effective from August 1, 2023, through July 31, 2028, the The department shall provide funding for child care for eligible childcare educators, and childcare staff, who work at least twenty (20) hours a week in licensed childcare centers and licensed family childcare homes as defined in the department’s rules and regulations. Eligibility is limited to qualifying childcare educators and childcare staff with family incomes up to three hundred percent (300%) of the applicable federal poverty guidelines and for child care assistance for these children will fall under the federal Child Care Development Funds definition of a “protected population” and would be determined on a case-by-case basis by the department using the affordability guideline of eighty-five (85%) percent of state median income. Families determined eligible by the department under this “protected LC004022 - Page 3 of 5 population” category will have no copayments. Qualifying participants may select the childcare center or family childcare home for their children. The department shall promulgate regulations necessary to implement this section, and will collect applicant and participant data to report estimated demand for state-funded child care for eligible childcare educators and childcare staff. The report shall be due annually to the governor and the general assembly by November 1.
SECTION 2. This act shall take effect upon passage.
40-5.2-20. Childcare assistance — Families or assistance units eligible.
(a) The department shall provide appropriate child care to every participant who is eligible for cash assistance and who requires child care in order to meet the work requirements in accordance with this chapter.
(b) Low-income child care. The department shall provide child care to all other working families with incomes at or below two hundred sixty-one percent (261%) of the federal poverty level if, and to the extent, these other families require child care in order to work at paid employment as defined in the department’s rules and regulations. The department shall also provide child care to families with incomes below two hundred sixty-one percent (261%) of the federal poverty level if, and to the extent, these families require child care to participate on a short-term basis, as defined in the department’s rules and regulations, in training, apprenticeship, internship, on-the-job training, work experience, work immersion, or other job-readiness/job-attachment program sponsored or funded by the human resource investment council (governor’s workforce board) or state agencies that are part of the coordinated program system pursuant to § 42-102-11. Effective from January 1, 2021, through June 30, 2022, the department shall also provide childcare assistance to families with incomes below one hundred eighty percent (180%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education provided that eligibility to receive funding is capped when expenditures reach $200,000 for this provision. Effective July 1, 2022 through December 31, 2024, the department shall also provide childcare assistance to families with incomes below two hundred percent (200%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education. Effective January 1, 2025, the department shall also provide childcare assistance to families with incomes below two hundred sixty-one percent (261%) of the federal poverty level when such assistance is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public institution of higher education.
(c) No family/assistance unit shall be eligible for childcare assistance under this chapter if the combined value of its liquid resources exceeds one million dollars ($1,000,000), which corresponds to the amount permitted by the federal government under the state plan and set forth in the administrative rulemaking process by the department. Liquid resources are defined as any interest(s) in property in the form of cash or other financial instruments or accounts that are readily convertible to cash or cash equivalents. These include, but are not limited to: cash, bank, credit union, or other financial institution savings, checking, and money market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual funds; and other similar financial instruments or accounts. These do not include educational savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse. The department is authorized to promulgate rules and regulations to determine the ownership and source of the funds in the joint account.
(d) As a condition of eligibility for childcare assistance under this chapter, the parent or caretaker relative of the family must consent to, and must cooperate with, the department in establishing paternity, and in establishing and/or enforcing child support and medical support orders for any children in the family receiving appropriate child care under this section in accordance with the applicable sections of title 15, as amended, unless the parent or caretaker relative is found to have good cause for refusing to comply with the requirements of this subsection.
(e) For purposes of this section, “appropriate child care” means child care, including infant, toddler, preschool, nursery school, and school-age, that is provided by a person or organization qualified, approved, and authorized to provide the care by the state agency or agencies designated to make the determinations in accordance with the provisions set forth herein.
(f)(1) Families with incomes below one hundred percent (100%) of the applicable federal poverty level guidelines shall be provided with free child care. Families with incomes greater than one hundred percent (100%) and less than two hundred percent (200%) of the applicable federal LC004022 - Page 2 of 5 poverty guideline shall be required to pay for some portion of the child care they receive, according to a sliding-fee scale adopted by the department in the department’s rules, not to exceed seven percent (7%) of income as defined in subsection (h) of this section.
(2) Families who are receiving childcare assistance and who become ineligible for childcare assistance as a result of their incomes exceeding two hundred sixty-one percent (261%) of the applicable federal poverty guidelines shall continue to be eligible for childcare assistance until their incomes exceed three hundred percent (300%) of the applicable federal poverty guidelines. To be eligible, the families must continue to pay for some portion of the child care they receive, as indicated in a sliding-fee scale adopted in the department’s rules, not to exceed seven percent (7%) of income as defined in subsection (h) of this section, and in accordance with all other eligibility standards.
(g) In determining the type of child care to be provided to a family, the department shall take into account the cost of available childcare options; the suitability of the type of care available for the child; and the parent’s preference as to the type of child care.
(h) For purposes of this section, “income” for families receiving cash assistance under § 40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in §§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned and unearned income as determined by departmental regulations.
(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for child care in accordance with the provisions of § 35-17-1.
(j) In determining eligibility for childcare assistance for children of members of reserve components called to active duty during a time of conflict, the department shall freeze the family composition and the family income of the reserve component member as it was in the month prior to the month of leaving for active duty. This shall continue until the individual is officially discharged from active duty.
(k)
SECTION 2. This act shall take effect upon passage.