SHB 2689
SignedHouse
Working connect. child care
Concerning the working connections child care program.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill expands income eligibility for Washington’s working connections child care program to include families earning up to 85% of state median income by 2031 (if funded), raises child care provider payment rates to 75% of market rates starting in 2026 (with a goal of full cost), and caps program enrollment at 33,000 households while prioritizing high-need families.
- Expands income eligibility for working connections child care: starting in 2029, families earning up to 75% of state median income (adjusted for family size) become eligible; from 2031, up to 85% if funding is appropriated.
- Sets a 33,000-household cap on program enrollment starting January 1, 2027, with priority access for families receiving TANF, families with children in school-based child care, and others as specified.
- Increases child care subsidy payments: starting July 1, 2026, rates rise to 75% of market rates (up from current levels), with a goal of reaching full cost of care by 2031; family child care providers retain current negotiated rates until new market data is available.
- Uses a new child care cost estimate model to guide future rate setting, considering regional cost differences (e.g., urban vs. rural), and explores health insurance options for providers.
- Automatically confirms income eligibility for families receiving food assistance (SNAP or state food program) as of November 1, 2024, streamlining access.
- Prohibits denial of benefits based on a child’s citizenship status and repeals the 'prospective payments' rule (RCW 43.216.827).
Who is affected
- Low- and moderate-income working families seeking child care assistance — Families with children under 13 (or under 19 with special needs or under court supervision) whose household income is at or below 60% of state median income (adjusted for family size) will continue to be eligible starting in 2026; starting in 2029, eligibility expands to families earning up to 75% of state median income; and from 2031, up to 85% if funding is available.
- Child care providers (centers, family child care homes) — Child care providers—especially licensed or certified centers and family child care homes—will receive higher subsidy payments over time, starting at 75% of market rates in 2026, with a goal of reaching full cost of care by 2031. Family child care providers will continue receiving rates set in the 2025–27 collective bargaining agreement until new market data is available.
- Families receiving food assistance (SNAP or state food assistance) — Families receiving food assistance (SNAP or state food assistance) will automatically meet income eligibility for working connections child care as of November 1, 2024, simplifying the application process.
- Existing program participants and high-priority families — Families already enrolled in the program before the cap takes effect, and those falling under specific priority categories (e.g., TANF recipients, families with children in certain school-based child care), will retain access even if the program reaches its caseload cap of 33,000 households.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Automatic income eligibility confirmation for SNAP recipients streamlines access to child care, reducing administrative burden and time-to-enrollment for low-income families—many of whom also rely on Medicaid—enabling more stable employment and better health outcomes for both parents and children.
HealthcarePeopleRef: Sec. 1(5), effective Nov. 1, 2024Expanding income eligibility to 75% SMI in 2029 and up to 85% SMI in 2031 (if funded) significantly broadens access to early learning and school-readiness programs for working families just above the current poverty threshold—many of whom are employed but still struggle with high child care costs—supporting child development and long-term educational attainment.
EducationPeopleRef: Sec. 1(2), Sec. 1(3), Sec. 1(4)Raising subsidy rates to 75% of market rates by 2026 (up from current levels) improves provider reimbursement, helping centers and family child care homes cover rising operational costs—potentially increasing provider retention and capacity, especially in underserved areas, and enabling more parents to work full-time without child care gaps.
Business & EmploymentPeopleRef: Sec. 2(2)(a), effective July 1, 2026Mandating a new child care cost estimate model that accounts for regional cost differences (e.g., urban vs. rural) and exploring health insurance options for providers addresses structural inequities in provider compensation and sustainability—benefiting small providers and improving service quality, especially in areas with high turnover or provider shortages.
Business & EmploymentPeopleRef: Sec. 2(3)(a), Sec. 2(3)(b)Prohibiting denial of benefits based on a child’s citizenship status and repealing the 'prospective payments' rule ensures equitable access for immigrant families—many of whom are essential workers in agriculture, construction, and service industries—reducing fear and administrative barriers that previously excluded eligible children.
Rights & LibertiesPeopleRef: Sec. 1(7), effective Nov. 1, 2024
Potential Concerns (5)
The 33,000-household cap on program enrollment—while exempting priority groups—will likely reduce access for many low- and moderate-income families who earn just above 60% SMI but below 75% SMI, especially those not in the priority tiers (e.g., not TANF recipients or school-based child care users). This creates a waiting list or exclusion effect for families on the margin of eligibility, disproportionately affecting working families in high-cost urban areas where child care costs are highest and housing instability is common.
HousingPeopleRef: Sec. 1(10), effective Jan. 1, 2027Freezing new enrollments from July 1, 2026, to December 31, 2026 (except priority groups) creates a temporary gap in access for families newly qualifying under the 60% SMI threshold—particularly affecting single-parent households and families with non-traditional work schedules—delaying their ability to enter the workforce or maintain stable employment due to unmet child care needs.
Business & EmploymentPeopleRef: Sec. 1(9), effective July 1, 2026Prioritization rules favor families already in the system or in specific high-need categories (e.g., TANF, school-based child care), which may delay or deny access for families in crisis (e.g., fleeing domestic violence, recently incarcerated parents, or those with unstable housing but not formally in TANF), potentially increasing household stress and risk of child welfare involvement.
Public SafetyLean peopleRef: Sec. 1(10)(f), Sec. 1(10)(a)-(e)Family child care providers retain only the 2025–27 collective bargaining rate until new market data is available—potentially years—while centers receive a 75% market-rate increase. This creates a two-tiered compensation system that may disincentivize family child care participation, especially in rural or low-demand areas, reducing provider diversity and geographic access for families in non-urban regions.
Business & EmploymentLean peopleRef: Sec. 2(2)(a), effective July 1, 2026The 85% SMI eligibility tier is explicitly contingent on future appropriations—meaning expansion is not guaranteed—creating uncertainty for families near that threshold and potentially leading to last-minute program closures or waiting lists if funding falls short, undermining long-term planning for working families.
FinancialLean peopleRef: Sec. 1(10), Sec. 1(4)
Who Is Most Affected
Low- and moderate-income working families (especially those earning 60–85% SMI) gain expanded access to affordable child care, enabling greater workforce participation and reduced financial stress—but may face delays or exclusion if the 33,000-household cap fills quickly or funding for the 85% tier is not appropriated.
Child care providers—especially licensed centers—benefit from higher reimbursement rates (75% market rate), improving financial viability; however, family child care providers may lag behind due to rate freezes until new market data, and all providers face administrative complexity in navigating the new prioritization and enrollment cap.
SNAP recipients gain streamlined access to child care without separate income verification, reducing administrative burden and wait times—accelerating their ability to engage in job training or employment.
High-priority families (TANF recipients, school-based child care users, children with special needs) retain guaranteed access under the cap, but other eligible families—especially those earning just above 60% SMI—may be excluded if the 33,000-household cap is reached before their application is processed.
Local governments and school districts benefit indirectly through improved school readiness and reduced special education referrals, but may face pressure to expand school-based child care to meet the priority access criteria—requiring additional staffing or infrastructure investment.