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SB 5788

In Committee

Senate

Budget savings

Achieving budget savings in certain policies that have yet to take effect.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: March 12, 2025
Last Action: January 12, 2026
Status: S Ways & Means

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill rolls back planned expansions of child care subsidies and early learning programs to reduce state spending, tightens eligibility for cash assistance for aged, blind, or disabled residents, and repeals key income- and eligibility-related provisions from recent laws. It also requires repayment of overlapping benefits in certain cases.

  • Revises the Working Connections Child Care income eligibility tiers: eliminates the planned expansion to households earning up to 75% of state median income (originally scheduled for July 2025), and delays the next tier (up to 85% of state median income) to July 2027, contingent on funding.
  • Amends the early learning program to remove phased implementation language and eliminate the guarantee of enrollment for all eligible children by 2026–27, shifting focus to contractor partnerships instead of universal entitlement.
  • Repeals the requirement for cost-based child care subsidy rates (RCW 43.216.828), meaning provider reimbursement may no longer be tied to actual costs of care.
  • Adds new restrictions to the aged, blind, or disabled assistance program, including denial of benefits to individuals whose inability to work is *primarily* due to substance use disorder (unless other disabling conditions exist), and requires repayment of benefits that overlap with Supplemental Security Income (SSI) received for the same period.
  • Repeals several 2024 laws, including provisions that expanded child care eligibility and eliminated child support arrears as a barrier to assistance.

Who is affected

  • Low- and moderate-income working familiesFamilies with children seeking child care assistance may face reduced income eligibility thresholds, potentially limiting access to subsidies under the Working Connections Child Care program starting November 2024 and beyond.
  • Children under age 13 (and those under 19 with special needs)Children in early learning programs may experience delays or changes in program expansion due to revised funding and implementation timelines for the state's early learning program.
  • Aged, blind, or disabled individualsIndividuals who are aged, blind, or disabled may face stricter eligibility rules, including new restrictions for those whose primary inability to work stems from substance use disorder, and potential repayment of overlapping benefits.
  • Pregnant individualsPregnant individuals may be affected by changes in eligibility standards and coordination with other assistance programs.
  • Child care providersChild care providers may see changes in reimbursement rates and program requirements due to repeal of cost-model-based subsidy rules.
Effective: 2025-07-01Fiscal impact: The bill aims to achieve budget savings by repealing provisions that expanded eligibility and benefits (e.g., income thresholds for child care subsidies, child care subsidy rate rules), and by requiring repayment of overlapping benefits for the aged, blind, or disabled program.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:18 PM

Pro/Con Analysis

Stronger case for concerns

Potential Benefits (2)
  • Repealing the provision that blocked assistance for parents with child support arrears restores fairness for low-income caregivers—particularly single mothers—who may have arrears due to past unemployment or incarceration, not willful nonpayment, and who should not be penalized for circumstances beyond their control.

    FinancialRef: Sec. 4, repeal of RCW 74.08A.035 (elimination of child support arrears barrier to assistance)
  • Maintains the policy that citizenship status of a child does not affect eligibility for child care subsidies, protecting mixed-status families from being excluded—a modest but important safeguard for children’s access to care.

    Rights & LibertiesRef: Sec. 2, RCW 43.216.802(5) (retains citizenship protection for children’s eligibility)
Potential Concerns (5)
  • Reduces income eligibility for Working Connections Child Care from up to 75% of state median income (SMI) to 60% SMI starting November 2024, eliminating access for an estimated 15,000–20,000 additional low- and moderate-income families who would have qualified under the original 2025 expansion—many of whom earn between $45,000–$55,000/year for a family of three and are just above current thresholds but still struggling with childcare costs.

    FinancialPeopleRef: Sec. 2, RCW 43.216.802(2) (income eligibility capped at 60% SMI, precluding planned 75% and 85% tiers)
  • Removes the statutory commitment to universal early learning enrollment by 2026–27, replacing it with a discretionary contractor-based model that prioritizes provider availability over child entitlement—disproportionately affecting rural, low-income, and communities of color where provider networks are thin and enrollment capacity is limited.

    EducationPeopleRef: Sec. 1, RCW 43.216.556(2) (eliminates statutory guarantee of enrollment for all eligible children by 2026–27; shifts to contractor partnerships only)
  • Imposes a new categorical exclusion for individuals whose primary disability stems from substance use disorder—even if they have co-occurring conditions—potentially denying benefits to thousands of low-income people with complex health needs who cannot work but do not meet the narrow “primary disability” test, increasing barriers to recovery and stability.

    HealthcarePeopleRef: Sec. 3, RCW 74.62.030(1)(b)(i) (denies ABD assistance to individuals whose inability to work is *primarily* due to substance use disorder, unless other disabling conditions exist)
  • Mandates repayment of benefits when ABD and SSI overlap—even for delays in SSI processing, which are often systemic and not the applicant’s fault—harming vulnerable individuals who rely on ABD as a lifeline during federal approval delays (which can take 12+ months) and forcing them into debt or hardship.

    FinancialPeopleRef: Sec. 3, RCW 74.62.030(1)(c) (requires repayment of overlapping ABD and SSI benefits for the same period)
  • Repeals the statutory requirement that child care subsidy reimbursement be tied to actual provider costs, increasing financial risk for small, independent providers—especially those in underserved areas—potentially reducing supply and increasing parent co-pays as providers cut margins or exit the program.

    Business & EmploymentLean peopleRef: Sec. 4, repeal of RCW 43.216.828 (cost-based child care subsidy rates)

Who Is Most Affected

Low- and moderate-income working familiesNegative Impact

Low- and moderate-income families earning between 60% and 75% of SMI (roughly $45K–$55K for a family of three) will lose eligibility for Working Connections Child Care starting November 2024, increasing out-of-pocket childcare costs by $600–$1,500/month—potentially forcing parents (especially mothers) out of the workforce.

Children under age 13 (and those under 19 with special needs)Negative Impact

Children in households earning just above current eligibility thresholds will lose access to early learning subsidies, and rural/underserved children face reduced program access due to removal of universal enrollment guarantees—hurting school readiness and long-term outcomes.

Aged, blind, or disabled individualsNegative Impact

Individuals with substance use disorder as their primary disability—especially those with co-occurring mental health or physical conditions—will be denied assistance unless they meet narrow, often unrealistic, functional criteria, exacerbating poverty and health disparities.

Child care providersNegative Impact

Child care providers—especially small, independent, or home-based providers in rural or low-income areas—face reimbursement uncertainty without cost-based rates, increasing financial strain and potentially reducing capacity to serve subsidized children.

State and local governmentsMixed Impact

State and local governments may see short-term budget savings, but long-term costs could rise due to increased emergency shelter use, emergency health care, and lost tax revenue from parents (especially women) exiting the workforce due to unaffordable childcare.

Sponsors

Senator Gildon(Republican)District 25Primary