New rates continue state’s progress on better covering the true cost of providing care, including for infants and toddlers

Boston - On January 15, 2025 the Board of Early Education and Care unanimously approved the Healey-Driscoll Administration’s?proposed changes?to the reimbursement rates for early education and care providers who accept state child care financial assistance, known as rates. Child care providers across Massachusetts will start to receive the increase to their daily per child reimbursement rate as soon as possible, as well as a one-time retroactive payment to account for the increased rates back to July 1, 2024.?

The approved new rates continue the state’s progress on moving toward a rate structure and payment levels informed by the cost of providing care,?with a particular focus on adjusting rates farthest from the true cost of care. This includes infant and toddler rates for center-based programs. The approved rates also address increased operational costs for all providers. 

“Our administration, in partnership with the Legislature and Board, have increased rates by $90 million over the last two years for our hard-working child care providers. That has allowed them to invest in their educators and programming and reduce costs for families,” said Governor Maura Healey. “I look forward to seeing the ongoing impact of these significant increases over time. Team Massachusetts is continuing to prioritize making child care more affordable and accessible for all families.”

“Governor Healey and I had heard from child care providers that rates in certain parts of the state were disproportionately low and that infant and toddler rates had been too low for too long.?Last year, with support from the Legislature and Board, we made transformational changes to rectify that. Today’s approved rates continue that progress,” said Lieutenant Governor Kim Driscoll.? 

EEC reimburses providers of center-based and family child care and out-of-school time programs that serve families receiving child care financial assistance with a daily per-child reimbursement rate. These rates provide direct needs-based financial assistance to increase families’ purchasing power in the market and help pay for the cost of care. 

Under this administration, child care financial assistance rates have increased by almost $90 million and in 2024, Massachusetts became the sixth state in the country federally approved to move forward with a cost-based alternative methodology when setting rates for child care financial assistance. This has allowed the state to use the cost of care when setting rates for the last two fiscal years and bring all rates closer to the true cost of providing care while addressing long-standing inequities by geographic region and age group of children served. In Western and Southern Massachusetts, rates for center-based infant care have increased by 45% and over 20% for center-based toddler care.

“When the administration started, we declared that we didn’t just want to get ‘back’ to how things were before the pandemic. We were focused on transforming our early education and care system forward, towards access and equity for all families. I want to thank the Board, Legislature, and Commissioner Kershaw and her team – together, we have made remarkable progress over the last two years,” said?Education Secretary Dr. Patrick Tutwiler. “I know the sector will feel the impact of these transformational improvements for years to come.”

“We have been focused on making our child care financial assistance?programs family focused, accessible, dignified and equitable,” said?Early Education and Care Commissioner Amy Kershaw.?“These increases will continue our progress to have our rates better reflect the cost of care, with an intentional focus on equity by targeting increases towards closing the biggest gaps between our rates and the cost of care.”?

"The board remains committed to advancing the Commonwealth's rate structure to reflect the true cost of care for providers. Today, we deepen that commitment with gratitude to the Governor and Legislature for their partnership in securing the necessary resources for this critical work. Moving forward, we will continue refining our approach to prioritize the needs of children and providers at the heart of our decision-making,"?said Paul Belsito, Chair of the Board of Early Education and Care.?

“I am pleased to support this increase in the reimbursement rate for FY25. We know that investing in early childhood care and education helps to set children up for success in school and strengthens our economy by ensuring parents can work. For too long, reimbursement rates have not fully covered the cost of caring for children in all child care settings. This FY25 rate takes into account the true cost of caring for and educating young children, no matter their address or age.?This targeted rate increase will continue leveling the playing field to ensure that all child care providers receive enough funding to cover their costs,” said Maria Moeller, Vice Chair of the Board of Early Education and Care and Chief Executive Officer of The Community Group in Lawrence. 

“Child care reimbursements make early education and care attainable for families who need it most and give our children the leg up that they deserve," said Senate President Karen E. Spilka (D-Ashland). "I’m proud of the Senate’s steadfast commitment to early education and care, and applaud the administration for increasing the reimbursement rate, which will help working families and kids around the Commonwealth.”

"The House has long championed child care rate increases that reflect the true cost of care, and I’m proud of the work we've done with the Healey-Driscoll Administration to ensure EEC programming in Massachusetts can thrive," said House Speaker Ronald J. Mariano (D-Quincy). "I applaud Commissioner Kershaw and her team for their efforts, which align with the House's commitment to supporting the EEC workforce and providing more affordable and equitable access to high-quality early education and care.”

Examples of rate increases by region and age group of children served in center-based settings over the last two fiscal years:

Statements of Support

State Senator Jason Lewis (D-5th Middlesex)

“I am grateful for the hard work of the Healey-Driscoll Administration and the Board of Early Education and Care for reviewing and updating the reimbursement rates for early education and care providers. As the Senate Chair of the Joint Committee on Education, I was proud to work closely with the Administration over the last two years to find many ways to increase access to high-quality, affordable early education and childcare, which is essential for the healthy development of young children, as well as for the economic well-being of working families and employers in the Commonwealth.”

Representative Alice H. Peisch, Assistant Majority Leader (D-14th Norfolk)

“I want to thank the Healey-Driscoll Administration for prioritizing the need to ensure all children, regardless of socio-economic background, have access to high-quality early education and care, which has long been a priority of the House. The rate increase will allow providers to recruit and retain a high-quality workforce and reduce costs for families - continuing the Commonwealth’s commitment to making child care more affordable and accessible.”

Amy O’Leary, Executive Director, Strategies for Children

“We are grateful to the members of the Massachusetts Department of Early Education and Care Board for their thoughtful decision-making and to the Commissioner and staff at EEC who prepared data and information for the vote. This important rate increase builds on recent public investments in early education and care and the workforce. It will help our educators keep up with the increased cost of living, and further stabilize the child care sector, which is essential to our state economy.”

Jennifer Aldworth, Executive Director, Massachusetts Alliance of Boys & Girls Clubs

“Boys & Girls Clubs are thankful to EEC for their leadership in bringing about this much-needed rate increase for providers across the field. As demand for affordable afterschool and early education programs continues to grow, this rate increase is an important step in improving access for children and families throughout the Commonwealth.”

Kate-Marie Roycroft, Chief Executive Officer, Alliance of Massachusetts YMCAs

"The Massachusetts YMCAs are grateful to Governor Healey, the Department of Early Education and Care, and the Legislature for this increase in subsidy rates. This funding is essential to the work of the YMCAs as the largest collective provider of early education and after-school programming and our ability to serve children and families in our communities."  

William J. Eddy, Executive Director, Massachusetts Association of Early Education & Care

“Early Education programs across Massachusetts welcome today’s vote by the Board of Early Education & Care to release rate reserve funding for providers serving low-income and at-risk children. Today’s action will lead to programs raising early educator salaries and enhancing program quality. The vote to release this funding is the culmination of the FY ’25 efforts of the Healey Administration and House/Senate Leadership to continue raising the quality of early education in Massachusetts. We are appreciative of the leadership of Governor Healey, Speaker Mariano, Chairman Michlewitz, President Spilka, Chairman Rodrigues and Commissioner Kershaw to move this process forward and get this rate funding out to programs in a timely manner.”