State Announces Higher Reimbursement Rates for Childcare Providers

BOSTON — The Board of Early Education and Care (EEC) unanimously voted to approve the Healey-Driscoll administration’s proposed increases to childcare financial assistance reimbursement rates for FY 2026, reinforcing the state’s ongoing commitment to supporting early education and care providers and strengthening the childcare system for families across Massachusetts.

This rate increase invests $20 million to provide a modest, across-the-board increase for all providers, along with specific adjustments for providers whose current rates are furthest from the cost of providing care and median private tuition rates. That includes particular attention to some preschool rates and geographic areas where families face some of the greatest barriers to access.

The administration recognizes that early education and care providers continue to experience rising costs and remains focused on making progress toward reimbursing providers at the cost of care while also responding to conditions in the broader childcare market.

To make childcare more affordable, EEC helps to cover tuition costs for eligible families by providing financial reimbursements to early education and care programs that serve children utilizing Child Care Financial Assistance (CCFA). These reimbursements are paid using pre-determined daily rates that are based on a child’s age group, provider region, and program type.

“Affordable, high-quality childcare is essential for our children, our families, and our economy,” Gov. Maura Healey said. “Our administration has significantly increased rates over the years, and with this latest increase, we’re taking another important step toward covering the real cost of care, so providers can keep their doors open and families can access the care they need to succeed.”

This year’s rate increases build on the state’s previous investments in CCFA rates, which have increased by $147.5 million since FY 2023, and represent the latest step in a multi-year, data-driven effort to set rates based on the cost of care. Since 2022, EEC has partnered with external researchers to study the cost of providing care and develop and refine a cost-based alternative methodology for setting CCFA rates.

Under the current administration, Massachusetts became the sixth state in the country federally approved to move forward with a cost-based alternative methodology when setting rates for childcare financial assistance. This has allowed the state to use the cost of care when setting rates for the last three fiscal years and bring all rates closer to the true cost of providing care while addressing long-standing inequities by geographic region and age group of children served.

“By continuing to move reimbursement rates closer to the true cost of care, we are strengthening provider sustainability, supporting the childcare workforce, and helping to ensure families across Massachusetts have access to stable, high-quality care,” Early Education and Care Commissioner Amy Kershaw said.