Massachusetts has a history of breaking new ground, from founding the first public school to pioneering health care reform and marriage equality. Now, the state is set to make a significant impact in child care reform.
Last week, Governor Maura Healey signed the fiscal year 2025 state budget, which includes a groundbreaking $1.5 billion investment in child care. This budget not only allocates funds but also introduces major policy changes that will be codified into permanent law.
The budget incorporates elements from recent bills, such as the Early Ed Act, marking the most significant updates to the Massachusetts early education statute, Chapter 15D, since the Department of Early Education and Care was established in 2005.
The child care system in Massachusetts, as well as nationally, is widely recognized as flawed. Many families in the state spend up to 50% of their income on infant care. In 2023, the average cost for a family with an infant and a toddler in center-based care exceeded $46,000—more than many families’ rent or mortgage payments. Despite high tuition fees, early childhood educators in Massachusetts often earn poverty wages, with the average hourly wage still below $23, even with recent state wage increases.
Change was needed, and after years of advocacy, it is finally happening.
The FY25 budget introduces policies designed to make child care more affordable, improve educator compensation, and provide greater stability to the child care sector. This includes raising income eligibility for state child care financial assistance from 50% to 85% of state median income (SMI), approximately $124,000 for a family of four. Eventually, eligibility will increase to 125% of SMI, depending on future appropriations. Families receiving assistance will also pay no more than 7% of their income for care.
While ensuring all eligible families can access assistance and secure child care placements will be a multi-year process requiring additional funds, the new legislation provides a path to affordability for many more families in Massachusetts.
The budget also makes permanent the Commonwealth Cares for Children (C3) operations grants program, which provides essential funding directly to early childhood education providers. This program has allowed providers to raise educator wages while keeping, and in some cases lowering, tuition costs. Making C3 permanent could further reduce costs and expand child care options.
Since its inception in 2021, the C3 program has been one of the most effective public interventions in the state’s child care sector. With permanent funding, it could help providers offer professional salaries and more affordable tuition.
Additionally, the budget supports educators by making scholarship and loan forgiveness programs permanent and directing the Department of Early Education and Care to create a career ladder with salary and benefit guidelines for early educators. Although achieving salary levels comparable to K-12 teachers will require further funding, the budget sets a foundation for career development in early education.
By enacting these reforms and securing funding, the FY25 budget represents a significant step forward. The focus now shifts to ensuring that future funding matches the commitments made to families, providers, and educators. Massachusetts is paving the way for a brighter future in child care, benefiting both children and those who care for them.