Our Take on the 2025–26 Proposed Budget
Child Action CEO responds to the 2025 Budget Act, noting key child care gains and urgent challenges that remain.
Sacramento, California, January 10, 2025 – Today, Child Action, Inc. (CAI) thanks Governor Newsom for his
commitment to developing a new rate structure using an alternative methodology to estimate the cost of care
along with providing a timeline for implementing rate reform in the Fiscal Year 2025‐26 proposed budget.
Child Action, Inc. commends the Newsom Administration’s commitment to protecting our progress regarding
access to subsidized child care. This commitment aligns with our shared vision for a community where every
child thrives, and child care providers are valued for their tireless work.
Child Action, Inc. remains committed to actively engaging with policymakers throughout budget discussions as
we advocate for a budget agreement that prioritizes the backbone of California’s economy – childcare providers.
California will remain the leader of the American economy by prioritizing investments in child care workforce
development and ensuring wages reflect the true cost of care. Expanding access to stable, high‐quality child
care is crucial to economic progress and sustainable growth.
We are committed to advancing a rate structure that ensures fair compensation for child care providers. This
essential change will strengthen the current child care workforce by attracting and retaining dedicatedprofessionals benefiting families and our economy alike.
Child Action, Inc. CEO, Adonai Mack issued the following statement:
“Child Action, Inc. appreciates the Newsom Administration’s commitment to reforming the outdated reimbursement rate structure that keeps child care providers in the red, living from paycheck to paycheck. A rate that covers the actual cost of care will ensure access to quality child care and early education services. Prioritizing funding for early learning and child care services demonstrate Governor Newsom’s dedication to building the foundation for a prosperous future.
“In his press conference, the Governor affirmed California is the future of the American economy. To sustain this status and drive growth, access to quality, stable child care is essential. His focus on investments in career education is a vital step forward. The ECE workforce must be integral to the Master Plan for Career Education, just as K‐12 education. Addressing the persistent workforce shortages that leave child care classrooms empty is imperative to ensuring families have access to the care they need. Including child care in this plan recognizes its critical role in education and economic stability.
“Affordable childcare is not merely a support system for working parents and children; it is a catalyst for community‐wide benefits. By reducing poverty, enhancing community safety, and fortifying the economy, accessible child care becomes a cornerstone for the prosperity of Sacramento County and the entire state. Child Action, Inc. remains steadfast in its commitment to actively engage with the Administration and the Legislature throughout budget discussions. We are eager to ensure that the needs of Sacramento County’s child care providers are acknowledged and prioritized in shaping our community’s future.
The Governor made it very clear that the economy is his number one priority for this year. California’s economy is strengthened when parents have access to stable child care, which enables them to maintain employment and advance in their careers. Equally important, equitable access to quality child care sets children on a path for success in the K‐12 system and beyond.”