CA AB120

Extends eligibility periods for families adding a new child to subsidized childcare programs, ensuring the additional child receives at least 12 months of eligibility before redetermination as required by federal regulations

Suspends the cost-of-living adjustment for childcare and development programs for the 2025-26 fiscal year, and extends the monthly "cost of care plus" supplemental payment rates ($98-$211 per child depending on provider type and region) through June 30, 2026

Appropriates $88,550,000 from the General Fund for fiscal year 2025-26 to reimburse alternative payment program providers based on families' certified need (maximum authorized hours) rather than actual attendance

Requires the Department of Social Services to provide quarterly legislative updates through July 1, 2027 on implementation of the new rate structure based on an alternative methodology rather than regional market rate surveys

Reduces the minimum documented need threshold for daily rate reimbursements from 6 hours to 5 hours per occurrence, and establishes that beginning July 1, 2026, contract reimbursements will be based on the lesser of maximum contract amount, net reimbursable costs, or adjusted child days of enrollment