California 2025-2026 Regular Session

California Assembly Bill AB1981

Introduced
2/13/26  
Refer
3/2/26  
Report Pass
3/20/26  
Refer
3/23/26  
Report Pass
3/25/26  
Refer
4/6/26  
Report Pass
4/15/26  
Engrossed
4/23/26  
Refer
4/23/26  
Refer
5/6/26  
Report Pass
6/10/26  

Caption

An act to amend Section 10227.6 of of, and to add Section 10227.7 to, the Welfare and Institutions Code, relating to childcare, and declaring the urgency thereof, to take effect immediately.

Impact

The implications of AB 1981 are significant for California's childcare system. The bill mandates the development of a cost estimation model to guide reimbursement structures, moving away from outdated methods that contribute to inequities in service quality and accessibility. By ensuring rates are determined based on actual operational costs rather than what families can afford, the bill seeks to stabilize the workforce, reduce program closures, and improve access to quality childcare. This legislative change reflects California's commitment to enhancing the welfare of children and supporting families in need, particularly in areas categorized as childcare deserts. Additionally, the new provisions set a timeline for phased implementation and require regular updates from state departments, promoting transparency and accountability in the process.

Summary

Assembly Bill 1981, introduced by Assembly Member Aguiar-Curry, seeks to amend existing legislation concerning subsidized childcare, particularly focusing on reimbursement rates. The bill aims to establish a new methodology for setting these rates, which will consider the actual costs associated with providing high-quality childcare. This change comes in response to the shortcomings of the previous market-rate surveys that have undervalued the cost of care, leaving many providers underpaid and leading to insufficient access to reliable childcare for families. The bill emphasizes the need for equity in childcare provisions by ensuring that reimbursement rates reflect the true cost of services, which disproportionately impacts low-income communities and families of color.

Sentiment

The sentiment surrounding AB 1981 appears largely positive among its supporters, who view it as a critical step in improving childcare accessibility and quality. Advocates argue that ensuring fair reimbursement rates for childcare providers is essential for attracting and retaining a qualified workforce, particularly as the field predominantly employs women and individuals of color—groups often vulnerable to economic instability. However, there may be contention from those concerned about how these changes will be funded and the speed of implementation, highlighting the ongoing challenge of balancing immediate needs with long-term reforms within California's education and social services budget framework.

Contention

Notable points of contention may arise regarding the funding and operational feasibility of implementing this new reimbursement methodology. Critics might question whether the state can allocate adequate resources to support the increased payments to childcare providers without compromising funding for other essential services. Moreover, the transition period until the new rates are fully implemented could lead to temporary uncertainties for childcare providers and the families relying on their services. As such, ongoing dialogue around the financial implications and legislative oversight will be necessary to ensure that the goals of AB 1981 are met effectively without unintended consequences.

Companion Bills

No companion bills found.

Previously Filed As

CA AB927

An act to amend Section 1240 of the Education Code, relating to public schools, and declaring the urgency thereof, to take effect immediately.

CA AB597

An act to amend Section 15027 of the Insurance Code, relating to insurance, and declaring the urgency thereof, to take effect immediately.

CA SB28

An act to amend Sections 5361, 5971, 5975, 5976.5, 5977, 5977.1, 5977.3, 5977.4, 5978.1, 5979, 5982, 5983, and 5985 of, and to add Section 5988 to, the Welfare and Institutions Code, relating to mental health.

CA AB2309

CalFresh Protection Act.

CA AB753

Childcare: facility licensure: teacher requirements.

CA AB247

Incarcerated individual hand crew members: wages.

CA AB2729

Medi-Cal: Employer Responsibility for Medi-Cal Trust Fund.

CA SB379

An act to add Section 6609.

CA SB380

An act to add Section 6608.

CA SB1420

An act to amend Section 9084 of, and to add Section 3016.6 to, the Elections Code, relating to elections, and declaring the urgency thereof, to take effect immediately.

Similar Bills

CA AB1914

General plan elements: childcare.

CA AB1746

CalWORKs: childcare request forms.

CA AB2673

Personal Income Tax Law: Corporation Tax Law: credit: childcare.

CA SB1051

Foster care: childcare.

RI H5281

Creates the Rhode Island Childcare Assistance Program that governs both family eligibility for the state’s childcare subsidy program and expands eligibility for the program to meet the federal eligibility benchmark.

RI S0240

Creates the Rhode Island Childcare Assistance Program that governs both family eligibility for the state’s childcare subsidy program and expands eligibility for the program to meet the federal eligibility benchmark.

SC H4632

Childcare Facilities

RI S2667

Expands eligibility for the childcare assistance program to meet the federal eligibility benchmark.