On March 5, the Washington State House of Representatives passed a bill to cut approximately $100 million from the child care subsidy budget for working families in an effort to address the state's multi-billion dollar budget deficit.
Bill HB 2689 passed with a 53–44 vote, with five Democrats joining Republicans in opposition. The bill now moves to the Washington State Senate for consideration.
The Working Connections Child Care (WCCC) program provides state and federal subsidies to working families and parents currently enrolled in school who have incomes at or above 60% of the State Median Income (SMI).
According to previous plans, the program was set to expand eligibility to 75% of the SMI by 2029 and 85% by 2031. However, the new bill will halt this expansion.
In addition, the bill introduces several changes to how child care facilities are paid:
- Capping provider reimbursement rates at the 75th percentile of the market rate for subsidized services.
- Changing payment regulations regarding child absences.
- Ending pre-payments based on expected care start dates.
- Eliminating higher subsidy rates for four counties previously designated as "child care deserts."
According to an updated financial analysis, these changes will save the state approximately $102 million in 2027, of which about $9 million is from federal sources.
Total savings are expected to reach over $462 million during the 2027–2029 budget cycle, with a similar figure projected for the following budget cycle.
Representative Mia Gregerson (D-Seattle), the bill's sponsor, stated that the proposal was introduced at the request of Governor Bob Ferguson's office.
Meanwhile, many Republican lawmakers warned that the cuts could place significant pressure on an already under-resourced child care industry.
Representative Travis Couture (R-Allyn) argued that the bill creates savings by shifting the burden onto the child care industry.
Representative Mary Dye (R-Pomeroy) noted that the WCCC program is particularly vital for families in the Whitman County area, home to Washington State University, where many students and families rely on child care services to work and study.
She warned that reducing subsidies could cause many families to leave the area due to the lack of child care services.
Truong
