SB 140 Child Care Provider Payments
Pursuant to SB 140 (Chapter 193, Statutes of 2023) and the Memorandum of Understanding between the State of California and the Child Care Providers United (CCPU), eligible child care providers will receive Transitional Provider Subsidy Payments and Cost of Care Plus Rate Payments. Family child care providers who were paid in April 2023 shall receive one-time Transitional Provider Subsidy Payments no later than November 30, 2023. Eligible center-based providers who provided subsidized child care and development services in April 2023 will receive one-time Transitional Provider Subsidy Payments in Spring 2024. Beginning January 1, 2024, through the duration of the agreement (until July 1, 2025), all represented family child care providers and eligible center-based providers shall receive a once-per-month, per-child served who is enrolled in subsidized child care Cost of Care Plus Rate Payment.
One-time Transitional Payments
Payments to family child care providers shall be made no later than November 30, 2023. However, there is no specified deadline for payments to child care centers at this time. CDSS is working to provide the payments as quickly as possible. The payment amounts shall be based on child care provider type as follows:
- $500 per each license-exempt family child care provider
- $2,500 per each small-license family child care provider
- $3,000 per each large-license family child care provider
- $3,000 per each center-based child care provider
Who is eligible to receive these stipends?
These payments shall be payable to child care providers serving children enrolled in the following child care and development programs:
- California Alternative Payment Programs (CAPP)
- Migrant Alternative Payment Programs (CMAP)
- Family Child Care Home Education Networks (CFCC)
- California Work Opportunity and Responsibility to Kids (CalWORKs) Stages One, Two (C2AP) and Three (C3AP)
- The Emergency Child Care Bridge Program for Foster Children (Bridge Program)
- General Child Care and Development Programs (CCTR)
- Migrant Child Care and Development Programs (CMIG)
- Child Care and Development Programs for Children with Severe Disabilities (CHAN)
Payments to family child care providers will be based on April 2023 provider payment data.
Payments to center-based providers will be based on services provided in the month of April 2023.
How will the payments be issued?
Contractors will distribute payments to eligible family child care providers and subcontractors with whom they had a business relationship in April 2023 by November 30, 2023.
On April 12, 2024, CDSS issued guidance to contractors via Child Care Bulletin (CCB) No. 24-05 regarding the distribution of Transitional One-Time Payments. They will be distributed to contractors in the 2023-24 fiscal year. Contractors must make every effort to distribute payments to centers and subcontractors as soon as possible. Centers will receive a one-time payment of three thousand dollars ($3,000). Payments to centers must be issued in fiscal year 2023-24, or within 45 days of receipt of funds.
Contractors will receive an additional allocation equal to five (5) percent of the allocation for administrative costs associated with the provider payments. The one-time payment amount that is issued from a contractor to a provider must not be reduced.
In counties where the Stage One and or Bridge Programs are administered in-house by the county and where no business relationship exists between the Stage One/Bridge Program child care provider and an APP, Child Development Associates (CDA) in San Diego County will issue Cost of Care Plus Rate payments to those providers directly.
In accordance with the State and CCPU agreement, payment timelines of the agreement shall not apply to Stage 1 and Bridge providers paid by counties. CDA will request and require a W9 form from each provider before making a payment. CDA will issue payments to centers by the end of fiscal year 2023-24, or within 45 days of receipt of funds. Providers can check on the status of these payments at the following CDA website: www.supplementalratepayment.org.
Note: These payments are being funded by State General Fund dollars and therefore there are no associated American Rescue Plan Act requirements, including no survey requirement and no requirement that the workforce still must be providing care.
Need assistance?
Refer to CCB 23-32 for more information.
If you have any questions, please contact at ccpb@dss.ca.gov
Cost of Care - Monthly Payments
Child care providers will receive a monthly, per-child payment intended to supplement subsidized child care reimbursement. Providers shall receive payments for any timesheets covering service months December 2023 through May 2025 if they are submitted in any month beginning January 2024 and ending June 2025. The amount per child varies based on the county where the family child care provider is located and the assigned “region”, defined as:
Central: Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Monterey, Sacramento, San Benito, San Joaquin, San Luis Obispo, Stanislaus, Tulare
Northern: Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Mono, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, Yuba
Southern: Imperial, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Ventura
Los Angeles
Bay Area: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma
How much should providers expect to receive?
Who is eligible to receive these stipends?
These payments shall be payable to child care providers and centers serving children enrolled in the following child care and development programs:
- California Alternative Payment Programs (CAPP)
- Migrant Alternative Payment Programs (CMAP)
- Family Child Care Home Education Networks (CFCC)
- California Work Opportunity and Responsibility to Kids (CalWORKs) Stages One, Two (C2AP) and Three (C3AP)
- The Emergency Child Care Bridge Program for Foster Children (Bridge Program)
- General Child Care and Development Programs (CCTR)
- Migrant Child Care and Development Programs (CMIG)
- Child Care and Development Programs for Children with Severe Disabilities (CHAN)
How will the payments be issued?
Contractors are required to make the payments within 21 calendar days of the submission of a complete monthly attendance record or invoice, as specified in CCB 23-34.
In counties where the Stage One and or Bridge Programs are administered in house by the county and where no business relationship exists between the Stage One/Bridge Program child care provider and an APP, Child Development Associates (CDA) in San Diego County will issue payments to those providers directly.
In accordance with the State and CCPU agreement, payment timelines of the agreement shall not apply to Stage One and/or Bridge Program providers paid by counties. Because of the complexity of the Stage One and Bridge provider data in the California Statewide Automated Welfare System (CalSAWS) automation systems and CCPU dues processes, the necessary payment data has been delayed resulting in Stage One and Bridge payments occurring later than other payments. County Human Services Departments could not issue these payments because issuance would require county-level automation changes that would delay the release of the-payments past deadlines outlined in the CCPU agreement. As a result, county departments will issue Stage One and Bridge payments to providers first based on the customary payment process, then CDSS will forward payment and CCPU dues (as applicable) data to CDA to complete the Cost of Care Plus Rate Payment.
The CDSS has been working closely with counties to extract data needed for payment to child care providers. CDA will send payment to providers within 25 calendar days of receipt of a complete state payment data file from CDSS and a valid Form W9 for each provider. Providers can check on the status of these payments and provide W9 information at the following CDA website: www.supplementalratepayment.org.
If a provider was not already paid by CDA for a Transitional Subsidy Payment, CDA will request an Internal Revenue Service (IRS) Form W9 from each provider prior to making a Cost of Care Plus Payment in order to comply with IRS taxpayer identification requirements.
Note: These payments are being funded by State General Fund and therefore there is no associated American Rescue Plan Act Survey requirement. Contractors shall provide the payment directly to eligible child care providers and will not be subject to the regular reporting requirements associated with their child development contracts.
Union dues are required to be deducted in accordance with instructions issued by CalHR, pursuant to CCB 23-01.
Need assistance?
Refer to CCB 23-37 for more information.
If you have any questions, please contact at ccpb@dss.ca.gov