Requires DHS to establish quality-based reimbursement system for registered family child care providers participating in Grow NJ Kids.

This bill requires New Jersey's Department of Human Services (DHS) to create a quality-based reimbursement system for registered family child care providers participating in the state's subsidized child care program and the Grow NJ Kids quality rating initiative. It directly affects family child care providers who serve low-to-moderate income families and have earned a quality rating through Grow NJ Kids. The key mechanism is providing enhanced reimbursements to higher-rated providers, replacing the current flat-rate system with payments tied to quality standards. DHS must also seek federal approval to maintain funding for these subsidized child care programs under the new system.