SB 5500 Washington Senate · 2025-2026 Regular Session

Modernizing reimbursement rates for the working connections child care program.

SB 5500 modernizes Washington's child care subsidy rates for the Working Connections program by requiring the state to use a "cost of quality" rate model that covers the full cost of high-quality care. This model includes living wages for staff, benefits, educational materials, professional development, and other operational costs, replacing the previous 85th percentile market rate as the baseline. The bill mandates that future reimbursement rates must reflect these actual costs while maintaining the current minimum rate, and requires triennial reviews of rates for infants, nonstandard hours, and special needs populations. This directly affects licensed child care providers receiving state subsidies and the working families relying on subsidized care.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
Senate Passage
Jan 2026
House Passage
Governor
Introduced Jan 12, 2026 Last action Mar 12, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill Engrossed Substitute Bill · 8 edits · Jan 28, 2026
MODERATE
The bill was renamed from 'Substitute' to 'Engrossed Substitute' and its purpose was refined to focus on defining the cost of quality child care for a biennial survey rather than immediately modernizing reimbursement rates. The text was significantly rewritten to replace references to the 'Fair Start for Kids Act' and the 85th percentile market rate with a new requirement to use a specific 'cost of quality child care study' developed by the Early Educator Design Team. This study must include fixed costs for living wages, benefits, and professional development, and the bill now mandates that these studies be published by June 1st of every even-numbered year.
Scope change
The bill's scope shifted from an immediate mandate to update subsidy rates to a procedural requirement to define and publish a cost study every two years. The applicability was also narrowed by adding an exemption that prevents the act from applying to collective bargaining agreements negotiated until July 1, 2027.
SCOPE

The legislative intent was changed from immediately updating reimbursement rates to defining the methodology for a biennial cost of quality child care study.

REQUIREMENT

The requirement to achieve the 85th percentile of market rates was replaced with a mandate to use a specific cost estimation model developed by the Early Educator Design Team.

The cost study must now explicitly include fixed costs for living wages, benefits, family engagement, planning release time, educational materials, and professional development.

References to the 'Fair Start for Kids Act' of 2021 and previous provisions regarding the 85th percentile market rate were removed.

The specific instruction to build upon the work of the child care collaborative task force was removed.

TIMELINE

A new timeline was established requiring the department to publish the cost of quality child care study by June 1st of every even-numbered year.

An exemption was added stating that the act does not apply to collective bargaining agreements negotiated until July 1, 2027.

DEFINITION

New definitions were added to distinguish between a 'cost of quality child care study' and a 'cost of quality child care study as defined by the early educator design team'.

Floor votes · Senate Jan 28, 2026

How they voted

3219
Passed
Total votes 51
Jan 28, 2026
D Democratic31
31 Yea
100% Yea
R Republican20
1 Yea 19 Nay
95% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
22
Key actions
8
Committee
8
Mar 2, 2026
Committee
Referred to Rules 2 Review.
lower
Feb 27, 2026
Lower · Passed
Minority; do not pass.
lower
Feb 27, 2026
Lower · Passed
APP - Majority; do pass.
lower
Feb 27, 2026
Lower · Passed
Executive action taken in the House Committee on Appropriations at 10:30 AM.
lower
Feb 18, 2026
Lower · Passed
Public hearing in the House Committee on Appropriations at 4:00 PM.
lower
Jan 28, 2026
Upper · Passed
Floor amendment(s) adopted.
upper
Jan 12, 2026
Introduced
By resolution, reintroduced and retained in present status.
upper
Feb 12, 2025
Upper · Passed
Minority; do not pass.
upper
Feb 12, 2025
Upper · Passed
Executive action taken in the Senate Committee on Early Learning & K-12 Education at 10:30 AM.
upper
Feb 4, 2025
Upper · Passed
Public hearing in the Senate Committee on Early Learning & K-12 Education at 8:00 AM.
upper
1 primary · 12 co-sponsors

Sponsors