During the 2026 legislative session, SHB 2689 was passed. This law includes some changes to the Working Connections Child Care (WCCC) subsidy program, including updates to provider billing, subsidy rates, Market Rate Survey response rates, and maintains family eligibility at 60% state median income (SMI).
Many changes will require updates to rules and provider communication before they can fully take place. DCYF is reviewing what these changes mean for providers and families and preparing for when they will happen. More information, training support, and resources will be made available soon.
What this Means for Providers
Attendance-Based Payments
Child care providers will now be paid based on the days a child attends, allowable holidays, and professional development days, and limits allowable absent days. Payment will be categorized into three ranges:
- If a child attends 1-8 days, the provider may claim payment for the full authorization or up to 11 days, whichever is fewer.
- If a child attends 9-15 days, the provider may claim payment for the full authorization up to 15 days, whichever is fewer.
- If the child attends 16 or more days, the provider may claim payment for the full authorization.
Changes to Regional Rates
Enhanced regional rates have been removed for these counties:
- Benton
- Clark
- Walla Walla
- Whitman
Subsidy Rate Changes
On July 1, 2026, based on the 2024 Cost of Quality Child Care and Market Rate Survey, licensed child care center subsidy base rates must achieve the 85th percentile of the market rate.
- Center rates will increase by an average of 22%.
- Region 1 Preschool rates will stay the same.
- Region 1 and Region 4 school-age rates will decrease by 13%.
- Rates in Benton, Clark, Walla Walla, and Whitman counties will stay the same or increase slightly, with some exceptions:
- Infant rates will decrease in Benton, Clark, and Walla Walla counties.
- Pre-school and school-age rates will decrease in Whitman County.
On July 1, 2027, child care subsidy base rates must achieve the 75th percentile of market for licensed or certified child care providers.
Market Rate Survey Participation
The law sets minimum response rate thresholds for surveys beginning with the 2028 Cost of Quality Child Care (COQCC) and Market Rate Survey (MRS). DCYF will work towards stronger provider participation for the MRS results to be considered valid and used by the Legislature to make recommendations for subsidy rates.
Requirements include:
- At least 40% participation in each child care subsidy region.
- Participation must improve compared to the last survey.
- Once a region reaches 65% participation, it must stay at that level for future surveys.
What this Means for Families
Income Eligibility
The planned expansion of WCCC eligibility to 75% and 85% of State Median Income (SMI) has been canceled. Eligibility will stay at the current level (60% of SMI). DCYF will continue focusing on serving currently eligible families.
Timeline for Changes
- July 1, 2026: Center rates change to 85th percentile of 2024 Market Rate Survey.
- September 2026: Centers receive new subsidy billing training and guides
- October 2026:
- Center providers claim payment based on the new attendance-based rule for the October month of service.
- Family eligibility changes - State Median Income (SMI) guidelines and new copay groupings are updated.
- July 2027:
- Center and Family Home rates change to the 75th percentile of the market.
- Licensed Family Home providers claim payment based on the new attendance-based rule for the July month of service.
- January 2028: 2028 COQCC/MRS begins; increased provider participation requirement goes into effect.
How DCYF is Preparing
DCYF is working to respond to these changes so that we can best support providers and families. We will also be updating training and resources in anticipation of these changes.
DCYF is committed to:
- Transparent communication
- Provider support and training
- Ongoing engagement
We will continue to provide updates as implementation planning progresses.
2028 Cost of Quality Child Care (COQCC) / Market Rate Survey (MRS)
The 2028 COQCC / MRS will begin in January 2028. The increased provider participation requirement will be in effect at this time.
Survey Data Directly Impacts Rates
- The Legislature sets subsidy base rates according to MRS data at this time.
- Differences in rates for certain regions or age groups are based on data from the survey.
- Low response rates can cause inconsistent rates for certain regions or age groups.
How Providers Can Help
- More participation leads to more accurate rates.
- Providers play a direct role in shaping subsidy rates.
