Concerning the working connections child care program., the official text

CERTIFICATION OF ENROLLMENT
SUBSTITUTE HOUSE BILL 2689
Chapter 264, Laws of 2026
69TH LEGISLATURE
2026 REGULAR SESSION
WORKING CONNECTIONS CHILD CARE PROGRAM—VARIOUS PROVISIONS
EFFECTIVE DATE: April 1, 2026—Except for section 4, which takes effect July 1, 2027.
Passed by the House March 11, 2026
Yeas 51  Nays 45
LAURIE JINKINS

Speaker of the House of Representatives
Passed by the Senate March 11, 2026
Yeas 33  Nays 16
DENNY HECK

President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2689 as passed by the House of Representatives and the Senate on the dates hereon set forth.
BERNARD DEAN

Chief Clerk
Chief Clerk
Approved April 1, 2026 9:55 AM
FILED
April 1, 2026

BOB FERGUSON

Governor of the State of Washington
Secretary of State
State of Washington

SUBSTITUTE HOUSE BILL 2689

AS AMENDED BY THE SENATE
Passed Legislature - 2026 Regular Session
State of Washington
69th Legislature
2026 Regular Session

By House Appropriations (originally sponsored by Representatives Gregerson, Ormsby, and Macri; by request of Office of Financial Management)
READ FIRST TIME 03/02/26.
AN ACT Relating to the working connections child care program; amending RCW 43.216.802 and 43.216.828; adding new sections to chapter 43.216 RCW; creating a new section; repealing RCW 43.216.827; providing an effective date; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 43.216.802 and 2025 c 412 s 5 are each amended to read as follows:
(1) It is the intent of the legislature to increase working families' access to affordable, high quality child care and to support the expansion of the workforce to support businesses and the statewide economy.
(2) A family is eligible for working connections child care when the household's annual income is at or below 60 percent of the state median income adjusted for family size and:
(a) The child receiving care is: (i) Less than 13 years of age; or (ii) less than 19 years of age and has a verified special need according to department rule or is under court supervision; and
(b) The household meets all other program eligibility requirements established in this chapter or in rule by the department as authorized by RCW 43.216.055 or 43.216.065 or any other authority granted by this chapter.
(3) ((Beginning July 1, 2029, a family is eligible for working connections child care when the household's annual income is above 60 percent and at or below 75 percent of the state median income adjusted for family size and:
(a) The child receiving care is: (i) Less than 13 years of age; or (ii) less than 19 years of age and has a verified special need according to department rule or is under court supervision; and
(b) The household meets all other program eligibility requirements established in this chapter or in rule by the department as authorized by RCW 43.216.055 or 43.216.065 or any other authority granted by this chapter.
(4) Beginning July 1, 2031, and subject to the availability of amounts appropriated for this specific purpose, a family is eligible for working connections child care when the household's annual income is above 75 percent of the state median income and is at or below 85 percent of the state median income adjusted for family size and:
(a) The child receiving care is: (i) Less than 13 years of age; or (ii) less than 19 years of age and has a verified special need according to department rule or is under court supervision; and
(b) The household meets all other program eligibility requirements established in this chapter or in rule by the department as authorized by RCW 43.216.055 or 43.216.065 or any other authority granted by this chapter.
(5) )) Beginning November 1, 2024, when an applicant or consumer is a member of an assistance unit that is eligible for or receiving basic food benefits under the federal supplemental nutrition assistance program or the state food assistance program the department must determine that the household income eligibility requirements in this section are met.
(((6) ))(4) The department must adopt rules to implement this section, including an income phase-out eligibility period.
(((7) ))(5) The department may not consider the citizenship status of an applicant or consumer's child when determining eligibility for working connections child care benefits.
(((8) ))(6) The income eligibility requirements in ((subsections ))subsection (2) ((through (4) )) of this section ((do ))does not apply to households eligible for the working connections child care program under RCW 43.216.808 and 43.216.814.
Sec. 2. RCW 43.216.828 and 2025 c 424 s 957 are each amended to read as follows:
(1) It is the intent of the legislature to systemically increase child care subsidy rates over time until rates are equal to the full cost of providing high quality child care.
(2)(a) Beginning July 1, 2026, child care subsidy base rates must achieve the 85th percentile of market, as established by the most recent market rate survey published before May 20, 2025, for licensed or certified child care providers.
(b) Beginning July 1, 2027, child care subsidy base rates must achieve the 75th percentile of market for licensed or certified child care providers. The state and the exclusive representative for family child care providers must enter into bargaining over the implementation of the subsidy rate increase under this subsection.
(c) Beginning with the market rate survey published by June 1, 2028, in accordance with RCW 43.216.829, in order for the results from the survey for a child care subsidy rate region to be considered valid for the purpose of informing subsidy base rate increases under (b) of this subsection, the region must achieve a provider response rate of at least 40 percent and also be greater than the response rate for that region in the survey in the prior even-numbered year. When the response rate in a region achieves 65 percent or greater, a minimum of 65 percent must be maintained in subsequent surveys to be considered valid.
(3)(a) The department shall ((build upon the work of the child care collaborative task force to develop and implement a child care cost estimate model and )) use the completed child care cost ((model ))methodology published in accordance with RCW 43.216.829 to recommend subsidy rates at levels that are sufficient to compensate licensed or certified child care providers for the full costs of providing high quality child care. ((The department shall consider:
(i) Adjusting rates to reflect cost of living such as area median income, cost of living by zip code, and grouping by categories such as rural, suburban, or urban; and
(ii) Incorporating the rate model for nonstandard child care hours developed under section 306, chapter 199, Laws of 2021. ))
(b) The department shall build upon the work of the child care collaborative task force to evaluate options to support access to affordable health care insurance coverage for licensed or certified child care providers.
(4) This section does not interfere with, impede, or in any way diminish the right of family child care providers to bargain collectively with the state through the exclusive bargaining representatives as provided for under RCW 41.56.153.
NEW SECTION.    Sec. 3. (1) By October 1, 2026, the department of children, youth, and families shall adopt rules related to child care provider subsidy payments that allow licensed or certified child care centers who accept state subsidy payments to claim daily subsidy payments as follows:
(a) For a child who has attended for 16 or more days in a calendar month, a provider may claim payment for the full number of authorized days;
(b) For a child who has attended nine to 15 days in a calendar month, a provider may claim payment for the full number of authorized days, or for 15 days, whichever is fewer; and
(c) For a child who has attended one to eight days in a calendar month, a provider may claim payment for the full number of authorized days, or for 11 days, whichever is fewer.
(2) Daily subsidy payments must be paid in half-day or partial-day rates, as established in rule, for a child authorized for and receiving half-day or partial-day care.
(3) This section expires July 1, 2027.
NEW SECTION.    Sec. 4. A new section is added to chapter 43.216 RCW under the subchapter heading "subsidized child care" to read as follows:
(1) The department shall adopt rules related to child care provider subsidy payments that allow licensed or certified child care providers who accept state subsidy payments to claim daily subsidy payments as follows:
(a) For a child who has attended for 16 or more days in a calendar month, a provider may claim payment for the full number of authorized days;
(b) For a child who has attended nine to 15 days in a calendar month, a provider may claim payment for the full number of authorized days, or for 15 days, whichever is fewer; and
(c) For a child who has attended one to eight days in a calendar month, a provider may claim payment for the full number of authorized days, or for 11 days, whichever is fewer.
(2) Daily subsidy payments must be paid in half-day or partial-day rates, as established in rule, for a child authorized for and receiving half-day or partial-day care.
NEW SECTION.    Sec. 5. A new section is added to chapter 43.216 RCW under the subchapter heading "subsidized child care" to read as follows:
Beginning July 1, 2026, licensed or certified child care providers may not receive a child care subsidy base rate that is different than the rate for the child care subsidy rate region in which the provider is located.
NEW SECTION.    Sec. 6. RCW 43.216.827 (Prospective payments) and 2025 c 412 s 13 are each repealed.
NEW SECTION.    Sec. 7. Section 4 of this act takes effect July 1, 2027.
NEW SECTION.    Sec. 8. Except for section 4 of this act, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.
Passed by the House March 11, 2026.
Passed by the Senate March 11, 2026.
Approved by the Governor April 1, 2026.
Filed in Office of Secretary of State April 1, 2026.