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 the Stage Two Child Care program.

The need for child care is often one of the largest barriers to engagement, education, and work activities for CalWORKs participants. This data provides a visual representation of the annual trends and fluctuations of children receiving Stage One Child Care.

Fiscal Year (FY) 25-26 data variances are likely due to the implementation of several policies within CalWORKs Stage One, Two, and Three Child Care programs.

Among those are:

Cost of Care Plus Rate Payments to Child Care Providers: Pursuant to Senate Bill (SB) 120 and SB 151 and the Memorandum of Understanding (MOU) between the State and the Child Care Providers United (CCPU) Union, a distribution of monthly per-child payments were submitted to family child care providers and centers.

Child Care Bulletins (CCB) for Reference

Cost of Care Plus: CCB 25-26 (October 22, 2025): Cost of Care Plus Rate Payments to Child Care Centers Pursuant to Senate Bill (SB) 120 (Chapter 13, Statutes Of 2025)

Cost of Care Plus : CCB 25-29 (November 21, 2025): Cost of Care Plus Rate Payments to Child Care Providers Pursuant to Senate Bill 151

Stage Two Child Care begins when a family is transferred from Stage One after the family is considered stable, based on the local 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.

This chart shows the total number of families receiving Stage Two and Stage Three Child Care in the CalWORKs program annually.

The need for affordable child care is often one of the largest barriers to engagement, education, and work activities. This data provides visual representation of the trends, fluctuations, and utilization rates of the last two CalWORKs subsidized child care programs.

FY 25-26 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 is due to the policy changes noted in the Stage One summary.
• Contributing factors to changes in Stage Three percentages is the 24-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 the family's income remaining 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 the different child care and development needs of families. This data can help interest holders understand child care utilization trends in the CalWORKs child care programs.

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:

Implementation of Assembly Bill (AB) 1808: AB 1808 (Chapter 356, Statutes 2024) amends WIC Section 10271 to extend the minimum 12-month eligibility period to 24-months for eligible individuals enrolled in the CalWORKs Child Care Programs.

Child Care Provider Payments: As outlined in 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: Pursuant to SB 140 and the Memorandum of Understanding (MOU) between the State and the Child Care Providers United (CCPU) Union, a distribution of monthly per-child payments were submitted to family child care providers and centers.

Family Fee Changes: Provides guidance on authorizing 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.

Child Care Bulletins (CCB) for Reference

• AB 1808: CCB 25-15 - Implementation Of Assembly Bill (AB) 1808 (Chapter 356, Statutes 2024).
• Child Care Provider Payments: CCB 23-34E - Erratum to Implementation of the Provisions of SB 140 (Chapter 193, Statutes of 2023) Pertaining to Child Care Provider Payment.
• Cost of Care Plus: CCB 23-37 - Cost of Care Plus Rate Payments to Child Care Providers Pursuant to SB 140 (Chapter 193, Statutes of 2023)
• Family Fee Changes: CCB 23-22 - Assembly Bill (AB) 116 (Chapter 41, Statutes of 2023) Implementation: Family Fee Change

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 Program (CAPP), Universal Pre-Kindergarten (UPK), and Transitional Kindergarten (TK), which have created more child care options for families.