Modernizing reimbursement rates for the working connections child care program.

HB 1350 updates Washington's child care subsidy reimbursement rates to better match the actual cost of high-quality care. It requires the state to use a new "cost of quality" rate model that covers full provider costs - including living wages, benefits, staff training, and materials - instead of relying solely on the current 85th percentile market rate. This directly affects licensed child care providers serving families in the Working Connections Child Care program and aims to stabilize the child care workforce. The bill maintains the existing baseline reimbursement rate but mandates future rate recommendations must reflect these updated cost calculations.