Massachusetts Increases Reimbursement Rates
for Child Care Providers
New rates continue state’s progress on better covering
the true cost of providing care, including for infants and toddlers
BOSTON — Today the Board of Early Education and
Care unanimously approved the Healey-Driscoll Administration’s proposed changes to
the reimbursement rates for early education and care providers who accept state
child care financial assistance, known as rates. Child care providers across
Massachusetts will start to receive the increase to their daily per child
reimbursement rate as soon as possible, as well as a one-time retroactive
payment to account for the increased rates back to July 1, 2024.
The approved new rates continue the state’s progress on moving toward a rate structure
and payment levels informed by the cost of providing care, with a particular focus on
adjusting rates farthest from the true cost of care. This includes infant and
toddler rates for center-based programs. The approved rates also address
increased operational costs for all providers.
“Our administration, in partnership with the Legislature and
Board, have increased rates by $90 million over the last two years for our
hard-working child care providers. That has allowed them to invest in their
educators and programming and reduce costs for families,” said Governor
Maura Healey. “I look forward to seeing the ongoing impact of these
significant increases over time. Team Massachusetts is continuing to prioritize
making child care more affordable and accessible for all families.”
“Governor Healey and I had heard from child care providers
that rates in certain parts of the state were disproportionately low and that
infant and toddler rates had been too low for too long. Last year, with support from the Legislature and
Board, we made transformational changes to rectify that. Today’s approved rates continue that progress,” said Lieutenant Governor Kim Driscoll.
EEC reimburses providers of center-based and family child
care and out-of-school time programs that serve families receiving child care
financial assistance with a daily per-child reimbursement rate. These rates
provide direct needs-based financial assistance to increase families’
purchasing power in the market and help pay for the cost of care.
Under this administration, child care financial assistance
rates have increased by almost $90 million and in 2024, 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 two 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. In Western and Southern Massachusetts, rates for
center-based infant care have increased by 45% and over 20% for center-based
toddler care.
“When the administration started, we declared that we didn’t
just want to get ‘back’ to how things were before the pandemic. We were focused
on transforming our early education and care system forward, towards access and
equity for all families. I want to thank the Board, Legislature, and
Commissioner Kershaw and her team – together, we have made remarkable progress
over the last two years,” said Education
Secretary Dr. Patrick Tutwiler. “I know the sector will feel the
impact of these transformational improvements for years to come.”
“We have been focused on making our child care financial
assistance programs family
focused, accessible, dignified and equitable,” said Early Education and Care
Commissioner Amy Kershaw. “These increases will continue our progress to have our rates
better reflect the cost of care, with an intentional focus on equity by
targeting increases towards closing the biggest gaps between our rates and the
cost of care.”
"The board remains committed to advancing the
Commonwealth's rate structure to reflect the true cost of care for providers.
Today, we deepen that commitment with gratitude to the Governor and Legislature
for their partnership in securing the necessary resources for this critical
work. Moving forward, we will continue refining our approach to prioritize the
needs of children and providers at the heart of our decision-making," said Paul
Belsito, Chair of the Board of Early Education and Care.
“I am pleased to support this increase in the reimbursement
rate for FY25. We know that investing in early childhood care and education
helps to set children up for success in school and strengthens our economy by
ensuring parents can work. For too long, reimbursement rates have not fully
covered the cost of caring for children in all child care settings. This FY25
rate takes into account the true cost of caring for and educating young
children, no matter their address or age. This
targeted rate increase will continue leveling the playing field to ensure that
all child care providers receive enough funding to cover their costs,”
said Maria Moeller, Vice Chair of the Board of Early Education and Care
and Chief Executive Officer of The Community Group in Lawrence.
“Child care reimbursements make early education and care
attainable for families who need it most and give our children the leg up that
they deserve," said Senate President Karen E. Spilka (D-Ashland). "I’m
proud of the Senate’s steadfast commitment to early education and care, and
applaud the administration for increasing the reimbursement rate, which will
help working families and kids around the Commonwealth.”
"The House has long championed child care rate
increases that reflect the true cost of care, and I’m proud of the work we've
done with the Healey-Driscoll Administration to ensure EEC programming in
Massachusetts can thrive," said House Speaker Ronald J. Mariano
(D-Quincy). "I applaud Commissioner Kershaw and her team for their
efforts, which align with the House's commitment to supporting the EEC
workforce and providing more affordable and equitable access to high-quality
early education and care.”
Examples of rate increases by region and age group of
children served in center-based settings over the last two fiscal years:
|
|
Infant
|
Toddler
|
|
Per
Day/ Per Child
|
FY2023
Rate
|
New
Rate
|
FY2023
Rate
|
New
Rate
|
|
Western
|
$72.37
|
$105.00
(45%
increase)
|
$66.36
|
$82.50
(24%
increase)
|
|
Central
|
$75.95
|
$105.00
(38%
increase)
|
$68.36
|
$82.50
(21%
increase)
|
|
Northeast
|
$89.51
|
$110.25
(23%
increase)
|
$78.12
|
$85.97
(10%
increase)
|
|
Metro
|
$110.24
|
$121.31
(10%
increase)
|
$100.04
|
$110.09
(10%
increase)
|
|
Southeast
|
$72.37
|
$105.00
(45%
increase)
|
$67.89
|
$82.50
(22%
increase)
|
|
Metro
Boston
|
$105.25
|
$121.31
(15%
increase)
|
$93.20
|
$110.09
(18%
increase)
|
