July 2025

Child Care and Preschool

2025-26 Changes in Child Care Spending

In Millions

  General Fund      
 Change Prop. 98 Non- Prop. 98
Prop. 64

Federal
Total
Monthly cost of care plus payments —  $628 —  —  $628
Child care stabilization payments —  158 —  —  158
CalWorks caseload and cost of care —  157 —  -$62 95
Reimbursement based on maximum certified need —  89 —  —  89
Annualization of General Child Care slots added fall 2025 —  76 -$3 —  73
Administrative support for AP agencies —  70 —  —  70
Child and Adult Care Food Program caseload and COLA -$1 0.3 —  40 40
Prospective pay —  30 —  —  30
Technical adjustments —  22 -32 -108 -119
One-time adjustmentsa —  -756 -409 16 -1,149
Totals -$1 $473 -$444 -$114 -$85
a Includes prior year one-time costs associated with quality carryover, SB 140 carryover, child care infrastructure program, court cases, and the whole child community equity program. Assumes no spending in 2025-26 for CCPU retirement, health, and funds. The budget authorizes the Department of Finance to increase spending by up to $195 million for this purpose.
AP = Alternative Payment; MOU = Memorandum of Understanding; COLA = cost-of-living adjustment; CCPU = Child Care Providers United.