After weeks of voting, meetings, home visits, and powerful organizing, child care providers have overwhelmingly ratified our third contract with the State of California! This contract protects benefit funds, secures stabilization pay, ensures ongoing cost-of-living adjustments, extends payment by enrollment, and much more!
Additionally, the state ratified its side of the collective bargaining agreement through Senate Bill 151, which means providers will finally receive overdue stabilization payments by the end of 2025.
This victory was made possible because of the courage and persistence of the thousands of providers who stood together, organized, and refused to give up until we won real security for child care providers across California.
But our work is not done! The fight for the true cost of care continues! In October, our member committee will return to the table with the state to determine a final path toward full reimbursement for the cost of providing care.
“Going forward, the true cost of care needs to be our number one focus, so we can get paid fairly for the countless hours we put in. We are subsidizing the program with our free labor and our family members’ free labor,” said Miren Algorri, a child care provider in Chula Vista and member of UDW’s negotiating team. “We’re the workforce behind every other workforce in California that makes our strong economy possible.”
Stay engaged. Contact your organizer or our Member Resource Center at 800-621-5016 to learn how you can get involved and help lead the way!
When child care providers stand united, we win—and we’ll keep fighting until California’s child care system truly works for every family.
Agreement Details
The ratified agreement with the state includes the following:
- Protected benefit funds at their current levels:
- Health care funding – $100 million a year. Get reimbursement for health care, plus dental and vision coverage, and life insurance. Plus, you can add your dependents.
- Retirement funding – $80 million a year. Receive automatic contributions directly into your retirement account, if you are a licensed provider.
- Training funding – $15 million a year. Access free trainings, workshops, tuition assistance, mental wellness trainings, and the technology (laptops, printers) you need for your work.
- Payment increases by region, per subsidy child (starting next year):
| Region | Licensed Family Child Providers | License-Exempt Providers |
| Central (Inyo, Kern, Merced, Sacramento, San Luis Obispo, and Stanislaus) | $152 | $107 |
| Northern (Butte, Colusa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Placer, Plumas, Shasta, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, and Yuba) | $154 | $108 |
| Southern (Imperial, Orange, Riverside, San Diego, Santa Barbara, and Ventura) | $174 | $122 |
| Bay Area (Contra Costa, Marin, Napa, San Francisco, San Mateo, Solano, and Sonoma) | $230 | $161 |
- A one-time cost of care per-child payment based on April 2025 enrollment to be paid by 1/1/2026.
| Region | Licensed Family Child Providers | License-Exempt Providers |
| Central | $72 | $54 |
| Northern | $78 | $54 |
| Southern | $84 | $60 |
| Bay Area | $114 | $78 |
- A one-time stabilization payment per-child based on April 2025 enrollment to be paid by 1/1/2026
- Licensed $431 | Licensed-Exempt $300
- An extension of payment system based on enrollment rather than attendance
- The ability to re-negotiate rate increases if the legislature allocates more money in future budgets
- Significant advancements in the true cost of care rate structure, with a commitment to reach an agreement by the upcoming budget cycle.
You can read the full TA HERE.