Child Care Providers Ratify Contract Agreement with State of CA

Child Care Providers Ratify Contract Agreement with State of CA

Following two weeks of voting which included dozens of member meetings, home visits and online educational meetings on the tentative agreement, CCPU members overwhelmingly ratified their third contract with the State of California. Final results were announced September 22. CCPU members voted 99.11% to approve the new contract.

In addition, over the last few weeks, the state also ratified the 2025–28 contract through Senate Bill 151, which means with members’ ratifying the agreement, it is in effect and providers will finally see overdue stabilization payments by the end of 2025.

This is a victory built by the courage and persistence of thousands of providers who organized, mobilized, and refused to back down until the state delivered on security for child care providers across the state.

What Providers Won in the 2025–28 Contract:

  • $37 million ongoing, per year in Cost-of-Living Adjustments (COLAs)
  • $90 million one-time stabilization payments
  • $80 million ongoing, per year for retirement funding
  • $100 million ongoing, per year for healthcare funding
  • $15 million ongoing, per year for training and continuing education

The ability to re-negotiate rate increases if the legislature allocates more money

Clearer timelines for pay reform, including moving payments to the start of the month

Continued payment by enrollment (not daily attendance), protecting stability for families and providers

While this contract secures critical funding for stabilization, retirement, health care, and ongoing COLAs, the fight for the true cost of care continues. In October, our CCPU member committee will return to the bargaining table with the state to determine a final path toward full reimbursement for the cost of providing care.

Right now, 73% of child care providers in state programs do not pay themselves a salary because state reimbursement rates remain far too low. Every day, an average of 24 providers close their doors. Without reform, families lose care and working parents lose the ability to keep their jobs.

Providers will keep fighting until California’s child care system truly works for every family.