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AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Assembly Member Ávila Farías

February 19, 2026

An act to add Section 10234.5 to the Welfare and Institutions Code, relating to public social services, and making an appropriation therefor.

Vote: 2/3   Appropriation: yes   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the Child Care and Development Services Act, administered by the State Department of Social Services, requires the department to administer childcare and development programs, including, among others, general childcare and development, migrant childcare and development, and alternative payment programs, that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law requires the department to contract with local contracting agencies for alternative payment programs for childcare services to be provided throughout the state. Existing law then requires alternative payment programs to reimburse childcare providers for providing childcare to eligible children.

Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families. Existing law provides for state-subsidized childcare programs and childcare for recipients of benefits under the CalWORKs program and establishes 3 stages of childcare services managed by county welfare departments and agencies contracting with the State Department of Social Services.

This bill would require the department to, no less than quarterly, identify unspent or projected unexpended moneys from subsidized childcare and development programs, as specified. The bill would require the department, to the maximum extent permitted by federal and state law, to redirect and deposit the unspent or unexpended moneys identified to the Alternative Payment Program Enrollment Fund, as established by the bill. The bill would continuously appropriate all moneys in the fund to the department for the purpose of enrolling additional eligible families in alternative payment programs. The bill would require the department to notify each local childcare and development planning council whenever moneys are identified as unspent, or projected to remain unexpended, and are subject to transfer or redirection pursuant to these provisions. By authorizing existing appropriated moneys to be used for a new purpose, and by creating a continuously appropriated fund, this bill would make an appropriation.

The people of the State of California do enact as follows:

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) California’s economy depends on the ability of working families to access stable, affordable, and reliable childcare. Childcare is essential workforce infrastructure that enables parents to work, employers to operate, and businesses to grow.

(2) Access to consistent childcare promotes healthy child development, supports school readiness, and contributes to long-term educational and economic outcomes for children.

(3) Disruptions in childcare arrangements create instability for children and families, undermine workforce participation, and result in lost productivity for employers and the state’s economy.

(4) California has made significant public investments in subsidized childcare and early learning programs; however, a portion of these funds remain unspent each year due to administrative barriers, timing misalignments, and structural inefficiencies across programs.

(5) Alternative payment program contractors serve as the primary delivery system for voucher-based childcare and are uniquely positioned to rapidly enroll families, support parental choice, and deploy available funding efficiently.

(6) Community-based organizations administering childcare programs play a critical role in connecting families to childcare and related supports, including food, housing, and health services, thereby strengthening family stability and economic self-sufficiency.

(7) Maximizing the use of existing childcare funding, in addition to making new investments, is essential to serving more families without unnecessary delay or additional cost.

(8) Unspent childcare funds represent missed opportunities to serve eligible families and maximizing the use of all currently appropriated funds is an essential first step toward achieving universal access to childcare in California.

(b) It is the intent of the Legislature to do all of the following:

(1) Prioritize continuity of care for children and families, including maintaining care placements across eligibility periods and minimizing disruptions due to administrative processes.

(2) Ensure that California’s childcare system operates as a coordinated, responsive infrastructure that meets families where they are and eliminates barriers to access.

(3) Ensure that all appropriated childcare funds are fully utilized to serve eligible families and that systems are aligned to maximize enrollment, continuity of care, and timely access to services.

SEC. 2.

Section 10234.5 is added to the Welfare and Institutions Code, to read:

10234.5.

(a) Notwithstanding any other law, the State Department of Social Services shall, in consultation with contractors, no less than quarterly, identify unspent or projected unexpended moneys from all subsidized childcare and development programs administered pursuant to this division, including, but not limited to:

(1) General childcare and development programs.

(2) Migrant childcare programs.

(3) CalWORKs childcare programs, including Stages 1, 2, and 3.

(4) Any other state- or federally funded subsidized childcare programs.

(b) To the maximum extent permitted by federal and state law, the department shall shall, in consultation with contractors, redirect and deposit the unspent or unexpended moneys identified pursuant to subdivision (a) to the Alternative Payment Program Enrollment Fund, as hereby created in the State Treasury.

(c) Notwithstanding Section 13340 of the Government Code, all moneys in the Alternative Payment Program Enrollment Fund are continuously appropriated, without regard to fiscal years, to the department for the purpose of enrolling additional eligible families in alternative payment programs.

(d) The department shall expend moneys in the Alternative Payment Program Enrollment Fund in a manner that prioritizes all of the following:

(1) Contractors with demonstrated capacity to enroll additional families.

(2) Enrollment of families currently on waitlists or in the eligibility determination process.

(3) Continuity of care for children, including maintaining placements for siblings and preventing disruptions in care.

(e) The department shall establish a streamlined and timely process for the transfer or redirection of moneys, including improvements to or expansion of existing voluntary temporary transfer processes, to ensure that moneys are fully utilized within the applicable fiscal period.

(f) Moneys redirected pursuant to this section shall not be subject to administrative delays that would prevent their timely obligation or expenditure.

(h) Nothing in this section shall be construed to reduce or eliminate funding allocations for existing contracts. This section is intended solely to maximize the utilization of moneys that would otherwise remain unspent.