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Championing our Children: A Budget for California’s Future
Child Action urges a 2025–26 budget that protects child care access, advances rate reform, and invests in early learning so families and providers thrive.
As Governor Newsom unveils California’s budget proposal for 2025-26, we stand at a pivotal moment that will define our state’s values, priorities, and vision for the future. It will determine whether families can access affordable, quality child care, whether providers can keep their doors open, and whether our children have the strong foundation they need to thrive. If California wants to maintain its reputation as a leader in innovation, we must invest in our youngest learners.
California has made significant progress in early care and education (ECE). The historic expansion of slots, reform of parent fees, increases in reimbursement rates, and progress toward a new reimbursement methodology are commendable. To give every child in California the chance to grow, learn, and dream without limits, the State has the moral imperative to protect these investments and fulfill the promise of rate reform that covers the true cost of care.
Child Care Rate Reform: Fair Pay for Providers
Paying child care providers a reimbursement that reflects the true cost of care can lift providers out of poverty and stabilize quality child care for income-insecure families.
Low profit margins and the lingering impacts of COVID have forced many long-term providers to leave the field, reduce program slots, or close entirely. At Milestones Child Development Centers, Inc., I had to close a program with 43 spots in 2022 despite State support, as decades of inadequate funding left my profession on the brink.
While fast food workers in California now earn $20 an hour, child care providers often struggle to cover basic expenses, with many earning below minimum wage. Fair compensation is critical to keeping programs open, attracting skilled educators, and creating nurturing environments where children can thrive.
Aligning reimbursement rates with regional costs and inflation builds a sustainable, equitable child care system. Higher reimbursements lead to better wages, improved health care, and retirement options for providers, benefits that are often unattainable for small business owners. Child care rate reform demonstrates our commitment to valuing providers, supporting families, and strengthening the economy.
A Budget That Reflects Our Shared Values
Investing in child care is morally right and economically smart, with every dollar yielding significant returns by boosting school readiness, reducing poverty, and driving economic growth. It also reduces Adverse Childhood Experiences, preventing long-term chronic health conditions in children.
Access to quality Early Childhood Education (ECE) ensures equity by preparing all children for success in school and life, regardless of family income. It also supports parental upward mobility, as seen in State Senator Angelique Ashby’s journey from subsidized child care to completing college and law school. Her story is a powerful reminder of the transformative impact early care and education can have—not just on individuals, but on communities.
Without support for current programs, critical relationships with children and families are disrupted, disproportionately impacting women, particularly women of color, who rely on child care to work. Increased funding enables ECE professionals to meet their needs and better serve children, amplifying the transformative effects on individuals and communities.
A Moment of Opportunity
California has a chance to craft a budget that protects progress in the ECE field and builds on past investments. We can create a more resilient California by prioritizing our youngest learners, supporting providers, and strengthening infrastructure.
At Child Action, Inc., we see the impact of these investments daily: children discovering their potential, parents finding stability, and communities flourishing. Last year, Sacramento County led the state with the largest increase in child care facilities, adding 333 new sites, and ranked second in expanded capacity, creating 2,516 additional child care spaces. Yet, when funding falls short, families are turned away, providers burn out, and opportunities are lost.
This is our moment to ensure California shines as a beacon of hope.
Governor Newsom, please build upon California’s historic investments in ECE to ensure every child in California has a strong start in life. Every family has access to reliable, quality, affordable care. And every provider gets the respect and resources they need to do their essential work. Let us invest in a brighter future for California’s children, families, and communities.