CalWORKs Summary Program Services & Utilization Childcare

Child Care

This chart shows the total number of families receiving Stage One Child Care in the CalWORKs program on an annual basis. Stage One begins with a family's entry into the CalWORKs program. Participants leave Stage One after the county has deemed them stable, based on each county’s definition of stable and when there is space available in the next stage: Stage Two or Three.

This data can help partners understand the need for child care and how often it is one of the largest barriers to engagement in barrier removal, education, and work activities; this data can show us the uptake of Stage One Child Care as a proxy for growing family stability.

Interpretation of this data illustrates the substantial increase in 2019 due to the immediate and continuous child care policy, discussed below in greater detail. The drop in 2020-2021 is likely due to the COVID-19 Public Health Emergency, and the subsequent increase in 2021-2022 is likely due to the reengagement practice "post-COVID". The final decrease is likely a recalibration following the COVID-19 turbulence where the number of families to be reengaged naturally decreased.

Interpretation of this data illustrates the substantial increase in 2019 due to the immediate and continuous child care policy, discussed below in greater detail. The drop in 2020-2021 is likely due to the COVID-19 Public Health Emergency, and the subsequent increase in 2021-2022 is likely due to the reengagement practice "post-COVID." The final decrease is likely a recalibration following the COVID-19 turbulence where the number of families to be reengaged naturally decreased.

Several recent policies within the Stage One Child Care program have contributed to the substantial increase in families receiving these services, including:

Immediate and Continuous Child Care: The purpose of ACL 19-99 is to provide direction to County Welfare Departments (CWDs) on the implementation of Senate Bill (SB) 80 (Chapter 27, Statutes of 2019), signed by the Governor on June 27, 2019, pending forthcoming regulations. SB 80 increases access to child care services for CalWORKs participants by authorizing CalWORKs Stage One Child Care immediately upon CalWORKs cash aid approval and continuously for 12 months or until the participants are transferred to Stage Two.

Family Fee Changes: The purpose of Child Care Bulletin (CCB) 23-22 is to provide guidance to counties and child care and development contractors regarding the implementation of the provisions of AB 116 relevant to family fees. Specifically, AB 116 authorizes a restructured Family Fee Schedule that will become effective October 1, 2023. Specifically, commencing October 1, 2023, both of the following apply:

    • A) Family fees shall not exceed 1 percent of the family’s adjusted monthly income, and
    • B) A family with an adjusted monthly family income below 75 percent of the state median income shall not be charged or assessed a family fee.

It also allows for family fees that were accrued but uncollected prior to October 1, 2023, to be forgiven and not collected. This includes all family fees that were accrued and uncollected prior to the family fee waiver.

Extension of Child Care Reimbursement Based on Enrollment Rather than Attendance for Child Care and Development Program administered by CDSS: The purpose of CCB 23-26 is to provide guidance to counties and child care and development contractors regarding the continuation of voucher reimbursements to be based on enrollment rather than attendance, and center-based reimbursements to be based on 100% of the contract maximum reimbursable amount or net reimbursable program costs, whichever is less, through September 30, 2023, pursuant to AB 116.

Changes to Child Care Provider Rates: The purpose of CCB 23-28 is to provide guidance to counties and child care and development contractors regarding changes to policies related to child care provider rate sheets, rate category requirements, and the calculation of fluctuating income pursuant to Assembly Bill (AB) 116 (Chapter 41, Statutes of 2023).

Transitional One-time Payments to Child Care Providers: The purpose of CCB 23-32 is to provide guidance to counties and child care and development contractors regarding the distribution of transitional one-time payments to child care providers pursuant to SB 140 (Chapter 193, Statutes of 2023). These one-time, per provider payments were due to be issued by November 30, 2023.

Pertaining to Child Care Provider Payments: The purpose of CCB 23-34 is to provide guidance to counties and child care and development contractors regarding implementation of the provisions of SB 140 pertaining to child care provider payment policies and procedures.  Specifically, SB 140 makes changes to parent signature requirements, redefines part-time and full-time care, and requires counties and contractors to develop, implement, and publish a plan for timely payments to providers.  Parent signature requirements were effective, immediately. Both the part-time and full-time care definitions, and the plan for timely payment to providers requirements go into effect on or before March 1, 2024.

Cost of Care Plus Rate Payments to Child Care Providers: The purpose of CCB 23-37 is to notify counties and child care and development contractors of the distribution of per-child, monthly payments to family child care providers and centers, also pursuant to the MOU between the State and CCPU, ratified by CCPU members on July 31, 2023, and to SB 140 (Chapter 193, Statutes of 2023), signed by the Governor on September 13, 2023, which fully ratified the Agreement, and extended payments under it to centers, which are not represented by CCPU.


This chart shows the total number of families receiving Stage Two and Stage Three Child Care in the CalWORKs program on an annual basis. Stage Two begins when a family is transferred from Stage One after the county has deemed them stable, based on each county’s definition of stable and when there is space available in Stage Two. Stage Three begins after the family has “timed-out” of Stage Two, 24 months after they are off cash aid. A family may remain eligible for Stage Three services as long as they meet need and eligibility criteria set forth in WIC 10271, or when child(ren) age out. This chart allows partners to see the number of children in Stage Two compared to Stage Three. The second chart displays all three stages: Stage One, Stage Two and Stage Three.

Child care is often one of the largest barriers to engagement in education, and work activities, this data can show changes in Stage Two and Stage Three uptake as a proxy for growing family stability. Additionally, since both of the programs are caseload driven the data may impact funding allocations.

Stage Two:

Caseload for Stage Two steadily declined by over 50 percent. The Stage One transfer data shows a decrease (approximately 20 percent) in the number of children transferring from Stage One into Stage Two during this same time period.

Stage Three:

Caseload for Stage Three decline by approximately 30 percent from June 2019 through June 2021. The Stage Two “timing-out” data shows an increase of families “timing-out” into Stage Three during this same time period.  Since that time caseload has been steadily declining.

Stage Two:

Contributing factors to the decrease in Stage Two caseload include:

  • The decrease in transfers from Stage One is as a result of the policy changes noted in the Stage One summary. 
  • The COVID-19 Public Health Emergency

Since July 2022, there has been an increase in Stage Two enrollment. The 2024-25 Governor’s Budget projects the CalWORKs Stage Two caseload will grow by 44.3 percent in 2023-24 and 48.9 percent in 2024-25, which is higher than projected CalWORKs Stage One growth.

Stage Two caseload data may be higher depending on how quickly families transition from Stage One childcare because they are determined to be stable and/or they exit cash aid. On average, families are in Stage One Child Care for slightly over 1 year before transferring over to Stage Two.

Stage Three:

Contributing factors to the increase in Stage Three caseload include:

  • 12-month eligibility allows families to maintain their eligibility regardless of changes to the need for services.
  • The COVID-19 Public Health Emergency essential worker policies, allows for families to retain eligibility as essential workers.

As Stage Two is expected to continue to increase over the new few years and is projected to impact Stage Three as families “time-out.”