CA AB163

Allows California state preschool contractors to enroll eligible 2-year-old children until July 1, 2027, after which only contractors already serving 2-year-olds may continue; adjusts reimbursement rates to 1.8 for 2-year-old and 3-year-old children through July 1, 2027.

Extends the 5% reservation requirement for children with exceptional needs in part-day and full-day preschool programs indefinitely, eliminating previously scheduled increases to 7.5% and 10%.

Establishes streamlined request for application processes for existing California state preschool and childcare and development program contractors to receive new funding, with specific ineligibility criteria for contractors with compliance issues.

Allocates approximately 206,800 new childcare slots statewide across general childcare, alternative payment, and migrant programs, with 118,800 slots already awarded as of May 15, 2024.

Requires the State Department of Social Services to establish new reimbursement rates by July 1, 2025, based on an alternative methodology, with rates not reduced from June 30, 2024 levels; appropriates $328,000 for Preschool Development Grant administration.