CalWORKs Summary Program Services & Utilization Childcare

Child Care

This chart shows the total number of children receiving Stage One Child Care in the California Work Opportunity and Responsibility to Kids (CalWORKs) program on an annual basis.

Stage One begins when a participant enters the CalWORKs program and identifies a need for child care. Participants leave Stage One after the county has deemed them stable, based on each county’s definition of stable, and when there is space available to transition into another subsidized child care program.

The need for child care is often one of the largest barriers to engagement, education, and work activities. This data can help partners visualize the trends and fluctuations in families requiring Stage One child care.

Data variances are likely due the implementation of several policies within CalWORKs Stage One, Two, and Three child care programs.

Among those are:

Immediate and Continuous Child Care: Senate Bill (SB) 80 (Chapter 27, Statutes of 2019) increases access to child care services for CalWORKs participants by authorizing CalWORKs Stage One Child Care immediately upon CalWORKs cash aid approval and continuously for 12 months or until the participants are transferred to Stage Two as outline in ACL 19-99.

Family Fee Changes: Child Care Bulletin (CCB) 23-22 provides guidance on Assembly Bill (AB) 116 (Chapter 41, Statutes of 2023). AB 116 authorizes a restructured Family Fee Schedule effective October 1, 2023, specifying the following:

  • Family fees shall not exceed one percent of the family’s adjusted monthly income, and
  • A family with an adjusted month ly family income below 75 percent of the state median income shall not be charged or assessed a family fee.

Pertaining to Child Care Provider Payments: Child Care Bulletin (CCB) 23-34 outlines the provisions of Senate Bill (SB) 140 (Chapter 193, Statutes of 2023) pertaining to child care provider payment policies and procedures.

  • SB 140 makes changes to parent signature requirements, redefines part-time and full-time care, and requires counties and contractors to develop, implement, and publish a plan for timely payments to providers.
  • Parent signature requirements were effective, immediately.
  • Both the part-time and full-time care definitions, and the plan for timely payment to providers requirements became effective March 1, 2024.

Cost of Care Plus Rate Payments to Child Care Providers: CCB 23-37 notifies counties and child care and development contractors of the distribution of monthly per-child payments to family child care providers and centers, pursuant to SB 140 and the Memorandum of Understanding (MOU) between the State and Child Care Providers United (CCPU) Union.

Stage Two child care begins when a family is transferred from Stage One after the family is considered stable, based on each county’s definition of stable, and there is space availability in Stage Two.

Stage Three child care begins after the family has timed-out of Stage Two, which is 24-months after they are no longer receiving cash aid. A family may remain eligible for Stage Three services as long as they meet the need and eligibility criteria set forth in Welfare and Institutions Code (WIC) 10271.

The first chart shows the total number of families receiving Stage Two and Stage Three child care in the CalWORKs program on an annual basis, and the second chart displays all three stages combined.

The need for affordable child care is often one of the largest barriers to engagement, education, and work activities. These data can help partners visualize the trends, fluctuations, and utilization rates of the three CalWORKs subsidized child care programs.

Data fluctuations are influenced by how quickly families transition from Stage One child care. On average, families are in Stage One for slightly over a year before transferring to Stage Two.

Contributing factors to changes in Stage Two percentages include:

  • The decrease in transfers from Stage One due to the policy changes noted in the Stage One summary.
  • The COVID-19 Public Health Emergency.

Contributing factors to changes in Stage Three percentages include:

  • The 12-month immediate and continuous eligibility policy allowing families to maintain their eligibility regardless of changes to the need for services.

These charts display percentages of children receiving CalWORKs voucher-based child care in each of the Stages One, Two, and Three grouped by age and provider setting. Also represented is the percentage of children receiving Stage Two and Stage Three child care program vouchers by length of time in care.

The first chart shows the monthly percentages of each age group receiving CalWORKs Stage One Child Care, and the second chart shows the age groups receiving Stages Two and Three child care.

The third chart shows the monthly percentages of children receiving CalWORKs Stage One child care in each provider setting, and the fourth chart shows the setting percentages for children receiving Stages Two and Three.

The fifth chart shows the monthly percentages of children receiving full-time or part-time child care in the CalWORKs Stages Two and Three child care programs.

CalWORKs Stage One provides child care services to families when they first receive CalWORKs cash aid. CalWORKs families move to Stage Two when the county welfare department (CWD) determines they are stable. Families can remain in Stage One or Stage Two until they have been off cash aid for 24 months.

CalWORKs Stage Three serves families that have exhausted 24 months of Stage One or Stage Two Child Care after they have been off cash aid. Stage Three is dependent on available funding, and if the family's income remains at or below 85% of the state median income.

California’s child care and development system include both voucher-based and direct service programs, each addressing different child care and development needs of families. This data can help interest holders understand child care utilization trends.

This information can support needs and services plans, capacity building efforts and advise local child care and developmental programs and policies.

Data fluctuation is likely due to the COVID-19 Public Health Emergency, post COVID reengagement, and a recalibration following the COVID-19 turbulence. Additionally, implementation of several policies within the CalWORKs Stage One, Two, and Three child care programs may have contributed to variances.

These policies include:

Immediate and Continuous Child Care: Senate Bill (SB) 80 (Chapter 27, Statutes of 2019)increases access to child care services for CalWORKs participants by authorizing CalWORKs Stage One Child Care immediately upon CalWORKs cash aid approval and continuously for 12 months or until the participants are transferred to Stage Two as outline in ACL 19-99.

Family Fee Changes: Child Care Bulletin (CCB) 23-22 provides guidance on Assembly Bill (AB) 116 (Chapter 41, Statutes of 2023). AB 116 authorizes a restructured Family Fee Schedule effective October 1, 2023, specifying the following:

  • Family fees shall not exceed one percent of the family’s adjusted monthly income, and
  • A family with an adjusted monthly family income below 75 percent of the state median income shall not be charged or assessed a family fee.

Cost of Care Plus Rate Payments to Child Care Providers: CCB 23-37 notifies counties and child care and development contractors of the distribution of monthly per-child payments to family child care providers and centers, pursuant to SB 140 and the Memorandum of Understanding (MOU) between the State and Child Care Providers United (CCPU) Union.

The decrease in child care trends in some programs correlates with significant capacity increases in other programs, such as the expansion of General Child Care and Development (CCTR) and non-CalWORKs Alternative Payment (CAPP) programs, Universal Pre-Kindergarten (UPK), and Transitional Kindergarten (TK), which have created more child care options for families.