July 2026

Child Care and Preschool

2026-27 Changes in Child Care Spending

In Millions

  General Fund      
Change Prop. 98 Non-Prop. 98 Prop. 64 Federal Total
Policy Changes          
Child care slot increase —  $228 —  —  $228
Cost of care plus increase in lieu of COLA —  111 —  —  111
Infrastructure grants for wildfire affected areas —  0.2 11 26 37
Backfill of 2025-26 slot reductiona —  47 -$21 -$2 23
COLA for Resource and Referral and Local Planning Councils —  0.9 —  —  0.9
Subtotals (—) ($387) (-$11) ($23) ($399)
Technical Adjustments          
CalWORKs caseload and cost of care —  $36 —  $14 $51
Child and Adult Care Food Program caseload -$0.05 0.3 —  36 36
One-time adjustmentsb —  -4 —  -42 -46
Decrease in cost of care plus payments —  -109  — —  -109
Expiration of one-time stabilization payment —  -158 —  —  -158
Subtotals (-$0.05) (-$235) ($0) ($8) (-$227)
Totals -$0.05 $152 -$11 $32 $173
aThe 2026-27 Budget Act includes a $75 million reduction beginning in 2025-26 due to a decrease in federal funding. 
bIncludes prior year one-time costs associated with quality carryover, child care infrastructure carryover, court cases, and the whole child community equity program.
COLA = cost-of-living adjustment; MOU = Memorandum of Understanding; CCPU = Child Care Providers United.