Massachusetts House releases FY25 budget proposal

On Wednesday, April 10, the House Committee on Ways and Means released its $58 billion budget proposal for fiscal year 2025. The budget represents a 3.3% increase over the current fiscal year 2024 budget, but $150 million less than Governor Healey's proposal released in January.

In his letter to House members, Chair Aaron Michlewitz stated: "No area has had a greater impact on our workforce than early education and care. The lack of adequate and affordable childcare threatens to be a drag on our economy. The House remains committed to investing more towards early education. As such, this FY25 budget will invest a total of $1.5 billion towards early education. This includes fully funding the Commonwealth Cares for Children, or C3, grants at $475 million and including reforms that will make the program more sustainable and more equitable for all families. This budget also includes $65 million to sustain and provide additional rate increases for early education and care providers. Also included are $30 million to reduce the income-eligible waitlist, $17.5 million for Head Start grants, and $20 million for childcare and referral agencies."

See below for more information about specific early education and care line items, including C3 grants which are funded across three line items: 3000-1045, 3000-1048, and 1596-2410. In addition to line items, the House budget proposes policy changes in outside sections. See outside sections 17 through 23 and 103 for early education and care proposals, including the early educator scholarship, new loan forgiveness program, and a data advisory.

The House has until Friday April 12 to file amendments to the budget beginning on April 22. The Senate Ways and Means committee plans to release its own budget proposal in May.

Contact SFC Deputy Director Titus DosRemedios if you would like more information, and check this webpage for future updates and advocacy opportunities.

EEC Administration (3000-1000)
FY22 Conference Committee and Final Budget: $7,069,823 [includes $200,000 for a Cape and Islands early education needs assessment, $50,000 for Nurtury, Inc., $100,000 for More Than Words, Inc., $25,000 for East End House, $250,000 for Jumpstart, and $50,000 for Square One]
FY23 Conference Committee and Final Budget (GAA): $12,201,537 [includes includes $5 million for additional navigation support and outreach to families, $100,000 for More than Words in Boston, $25,000 for Child Care of the Berkshires, $60,000 for Acre Family Child Care in Lowell, $350,000 for Jumpstart for Young Children, $25,000 for East End House in Cambridge, and $50,000 for Springfield Day Nursery] For language on subsidy payment based on enrollment, see 3000-3060 and 3000-4060.
FY24 Conference Committee and Final Budget: $12,426,537 [language includes $50,000 for the Elizabeth Peabody House Association in Somerville; $35,000 for the Hyde Square Task Force, Inc. for creative development and community engagement programs; $100,000 for More Than Words, Inc. for a job training program for youth and young parents; $50,000 for capital improvements for the Haskins facility of Child Care of the Berkshires, Inc.; $50,000 for For Kids Only Afterschool, Incorporated for a pilot workforce development program to support programming for low-income and at-risk children and educators; $450,000 for Jumpstart for Young Children, Inc. to support evidence-based early childhood education programs that promote language, literacy and social emotional skill development for preschool children from underserved communities; and $100,000 for the city of Boston to provide infant mental health endorsement training for early education and care providers]
FY25 Governor: $12,189,926
FY25 HWM: $32,068,027 includes $10,000,000 for an early education and care educator scholarship program and $10,000,000 for an early education and care educator loan forgiveness program (see outside section 17).

Quality Improvement (3000-1020)
FY22 Conference Committee and Final Budget: $44,551,119
FY23 Conference Committee and Final Budget (GAA): $44,551,119
FY24 Conference Committee and Final Budget: $46,706,191
FY25 Governor: $47,603,764
FY25 HWM: $47,603,764

Rate Increase for Early Educators in Center-Based and Family Child Care (3000-1041)
FY24 Conference Committee and Final Budget: $20,000,000
FY25 Governor: see line item 1596-2434 below.
FY25 HWM: see line item 1596-2434 below.

Rate Increase for Early Educators in Center-Based Programs (3000-1042)
FY22 Conference Committee and Final Budget: $20,000,000
FY23 Conference Committee and Final Budget (GAA): $60,000,000, includes language "provided, that not less than $20,000,000 shall be expended to increase the reimbursement rate by an appropriate percentage for all such providers; provided further, that not less than $40,000,000 shall be expended to increase the reimbursement rate through a daily quality add-on rate by the same percentage for all such providers, inclusive of administration staff in family child care systems agencies"
FY24 Final Budget: $35,000,000 [includes $15 million for grants to early education and care providers for costs associated with personal childcare; language allows an additional $25 million in unspent FY23 subsidy funds from 3000-3060 and 3000-4060 to be used for a center-based rate increase in FY24]. See also $25 million in line item 1596-2434 below.
9C cut, 1-8-24: -$12,000,000. Governor's public comment: "I am reducing this item by $12 M. $5 M of this reduction will align the early educator scholarship program with FY23 funding levels, and $7 M of this reduction will be offset by funding rolled over from FY23 to still enable the planned $65 M provider rate increase."
FY25 Governor: see line item 1596-2434 below.
FY25 HWM: see line item 1596-2434 below.

Commonwealth Cares for Children (C3) Stabilization Grants (3000-1045)
FY22 Conference Committee and Final Budget: not funded
FY23 Conference Committee and Final Budget (GAA): $250,000,000
Economic Development Bill, November 2022: $150,000,000
FY23 Supplemental Budget: $68 million
FY24 Conference Committee and Final Budget: $475,000,000 [includes data and reporting requirements] (funding sources: High-Quality Early Education & Care Affordability Fund 47.37%, General Fund 52.63%)
FY25 Governor: $325,000,000 (+$150,000,000 in line item 1596-2410 below). For grants to support available capacity, support workforce and address operational costs within the early education and care sector; provided, that grants shall be available to child care programs supervised by the department of early education and care; provided further, that the distribution of grants shall prioritize equity and early education programs with higher percentages of state subsidized enrollment; provided further, that the department shall collect data from participating programs, including but not limited to, the number of enrolled children, number of educators employed, and a breakdown of the funding from the operational grants spent to recruit and retain employees; and provided further, that the department shall report such data to the joint committee on education, the house and senate committees on ways and means and the secretary of administration and finance on a quarterly basis
General Fund ............... 18.46%; High-Quality Early Education & Care Affordability Fund ............... 81.54%
FY25 HWM: $200,000,000 (plus line items 3000-1048, 1596-2410): For operational grants to child care providers whose enrollment includes at least 25 per cent of children with a child care financial assistance subsidy; provided, that funds from this line item shall be expended in coordination with funds from line items 3000-1048 and 1596-2410; provided further, that the department shall collect data from participating programs including, but not limited to: (i) the number of enrolled children; (ii) the number of educators employed; (iii) efforts to recruit and retain employees; (iv) any available demographic data of the families served by participating providers; (v) to the extent feasible, the income level of the families served by participating providers; and (vi) the amount of operational grants spent by provider, delineated by category of spending; provided further, that programs shall respond to all data collection requests and surveys from the department to be eligible for said grants; provided further, that the department shall report such data as required by section 20 of chapter 15D of the General Laws, as inserted by section 22; and provided further, that administrative costs for the program shall not exceed 2 per cent of the total appropriation for said program. High-Quality EEC Fund............................................100%

Commonwealth Cares for Children (C3) Stabilization Grants (3000-1048)
FY25 HWM: $100,000,000 (plus line items 3000-1045, 1596-2410): For operational grants to child care providers whose enrollment includes no children with child care financial assistance subsidies; provided, that the department shall prioritize payments to family and center-based providers who serve low-income and middle-income families who are on the waitlist for or not otherwise enrolled in the child care financial assistance subsidy system; provided further, that funds from this line item shall be expended in coordination with funds from line items 3000-1045 and 1596-2410; provided further, that the department shall collect data from participating programs including, but not limited to: (i) the number of enrolled children; (ii) the number of educators employed; (iii) efforts to recruit and retain employees; (iv) any available demographic data of the families served; (v) to the extent feasible, the income level of the families served; and (vi) the amount of operational grants spent by provider, delineated by category of spending; provided further, that programs shall respond to all data collection requests and surveys from the department to be eligible for said stabilization grants; provided further, that the department shall report such data as required by section 20 of chapter 15D of the General Laws, as inserted by section 22; provided further, that funds may be expended for departmental technical assistance related to the administration and distribution of funding; and provided further, that administrative costs for the program shall not exceed 2 per cent of the total appropriation for said program. Early Education and Care Operational Grant Fund ...100%

Access Management (3000-2000)
FY22 Conference Committee and Final Budget: $12,000,000
FY23 Conference Committee and Final Budget (GAA): $15,000,000
FY24 Conference Committee and Final Budget: $20,000,000
FY25 Governor: $20,000,000
FY25 HWM: $20,000,000

Supportive Child Care & TANF (3000-3060)
FY22 Conference Committee and Final Budget: $358,928,901. Includes language re. improved child care funding models, and transferring unspent funds to 3000-1045: provided further, that not later than December 30, 2021, the commissioner shall report to the joint committee on education and the house and senate committees on ways and means on the implementation or further development of an improved funding model for child care sustainability and quality; provided further, that not later than April 15, 2022, the commissioner shall report to the house and senate committees on ways and means and the secretary of administration and finance the projected expenses for the program; provided further, that if the department of early education and care determines that the available appropriation exceeds projected expenses, the commissioner shall transfer the amount that would otherwise be unspent by June 30, 2022 to item 3000-1045.
FY23 Conference Committee and Final Budget (GAA): $325,541,422, includes language: "provided, that providers shall be reimbursed for subsidized childcare services funded under this item based on enrollment." Includes eligibility language: "in light of the economic impact of COVID-19, for families participating in education and training services funded by the Supplemental Nutrition Assistance Program"
FY24 Conference Committee and Final Budget: $346,587,135
FY25 Governor: $356,587,135
FY25 HWM: $356,587,135

Income Eligible (3000-4060)
FY22 Conference Committee and Final Budget: $298,702,892. Includes language re. improved child care funding models, and transferring unspent funds to 3000-1045:
provided further, that not later than December 30, 2021, the commissioner shall report to the joint committee on education and the house and senate committees on ways and means on the implementation or further development of an improved funding model for child care sustainability and quality; provided further, that not later than April 15, 2022, the commissioner shall report to the house and senate committees on ways and means and the secretary of administration and finance the projected expenses for the program; provided further, that if the department of early education and care determines that the available appropriation exceeds projected expenses, the commissioner shall transfer the amount that would otherwise be unspent by June 30, 2022 to item 3000-1045.
FY23 Conference Committee and Final Budget (GAA): $368,108,945, includes language: "provided, that providers shall be reimbursed for subsidized childcare services funded under this item based on enrollment."
FY24 Conference Committee and Final Budget: $407,188,233
FY25 Governor: $417,188,233
FY25 HWM: $417,188,233

Head Start (3000-5000)
FY22 Conference Committee and Final Budget: $15,000,000
FY23 Conference Committee and Final Budget (GAA): $16,500,000
FY24 Final Budget: $17,500,000
FY25 Governor: $15,000,000
FY25 HWM: $17,500,000

Commonwealth Preschool Partnership Initiative (3000-6025)
FY22 Conference Committee and Final Budget: $10,000,000
FY23 Conference Committee and Final Budget (GAA): $15,000,000
FY24 Conference Committee and Final Budget: $15,000,000 (plus additional $5,500,000 in 1596-2412 below)
FY25 Governor: $17,673,127 (+$21,000,000 in line item 1596-2412 below)
FY25 HWM: $15,000,000

Early Childhood Mental Health (3000-6075)
FY22 Conference Committee and Final Budget: $3,000,000
FY23 Conference Committee and Final Budget (GAA): $3,500,000
FY24 Conference Committee and Final Budget: $5,000,000 (funding source: Behavioral Health Outreach, Access and Support Trust Fund)
FY25 Governor: $5,000,000
FY25 HWM: $5,000,000

EEC Contingency Contract Retained Revenue (3000-7040)
FY22 Conference Committee and Final Budget: $320,000
FY23 Conference Committee and Final Budget (GAA): $320,000
FY24 Conference Committee and Final Budget: $320,000
FY25 Governor: $520,000
FY25 HWM: $520,000

Services for Infants and Parents (3000-7050)
FY22 Conference Committee and Final Budget: $11,539,190
FY23 Conference Committee and Final Budget (GAA): $11,699,190, includes language: "provided further, that not more than $160,000 shall be expended for technical assistance."
FY24 Conference Committee and Final Budget: $11,859,190 [includes $160,000 for technical assistance]
FY25 Governor: $11,859,190
FY25 HWM: $11,859,190

Parent Child+ (3000-7052)
FY22 Conference Committee and Final Budget: $3,300,000
FY23 Conference Committee and Final Budget (GAA): $4,000,000
FY24 Conference Committee: $4,250,000
FY24 Governor Veto: -$250,000 (reduces to $4,000,000)
FY24 Final Budget: $4,250,000
FY25 Governor: $4,000,000
FY25 HWM: $4,000,000

Neighborhood Villages pilot (3000-7055)
FY22 Conference Committee and Final Budget: $1,000,000
FY23 Conference Committee and Final Budget (GAA): $1,000,000
FY24 Conference Committee and Final Budget: $1,000,000
FY25 Governor: $1,000,000
FY25 HWM: $1,000,000

Workforce Development Initiative (3000-7066)
FY22 Conference Committee and Final Budget: $5,000,000
FY23 Conference Committee and Final Budget (GAA): $10,000,000
FY24 Conference Committee and Final Budget: $10,000,000
FY25 Governor: $10,000,000
FY25 HWM: $10,000,000

Reach Out and Read (3000-7070)
FY22 Conference Committee and Final Budget: $1,548,228
FY23 Conference Committee and Final Budget (GAA): $1,548,228
FY24 Conference Committee and Final Budget: $1,750,000
FY25 Governor: $1,000,000
FY25 HWM: $1,000,000

Childcare Grants to Providers (1596-2410)
FY25 Governor: $150,000,000 For grants to support available capacity, support workforce, and address operational costs within the early education and care sector; provided, that grants shall be available to child care programs licensed or otherwise funded by the department of early education and care; provided further, that the distribution of grants shall prioritize equity and early education programs with higher percentages of state subsidized enrollment; provided further, that such grants shall be provided to child care providers whose enrollment includes at least fifty percent of children with a state subsidy; provided further, that funds from this line item shall be expended in coordination with funds from item 3000-1045; provided further, that the department shall collect data from participating programs, including but not limited to: (i) the number of enrolled children; (ii) number of educators employed; and (iii) a breakdown of the funding from the operational grants spent to recruit and retain employees; and provided further, that the department shall report such data to the joint committee on education, the house and senate committees on ways and means and the secretary of administration and finance on a quarterly basis. (Funding source: Education and Transportation Fund)
FY25 HWM: $175,000,000 (plus line items 3000-1045, 3000-1048): For operational grants to child care providers; provided, that funds from this line item shall be expended in coordination with funds in line items 3000-1045 and 3000-1048; provided further, that not less than $40,000,000 shall be expended for child care providers whose enrollment includes at least 25 per cent of children with a child care financial assistance subsidy; provided further, that not less than $135,000,000 shall be expended for programs whose enrollment includes at least 1 per cent but less than 25 per cent of children with a child care financial assistance subsidy; provided further, that the department shall collect data from participating programs including, but not limited to: (i) the number of enrolled children; (ii) the number of educators employed; (iii) efforts to recruit and retain employees; (iv) any available demographic data of the families served; (v) to the extent feasible, the income level of the families served; and (vi) the amount of operational grants spent by provider, delineated by category of spending; provided further, that programs shall respond to all data collection requests and surveys from the department to be eligible for said stabilization grants; provided further, that the department shall report such data as required by section 20 of chapter 15D of the General Laws, as inserted by section 22; provided further, that funds may be expended for departmental technical assistance related to the administration and distribution of funding; and provided further, that administrative costs for the program shall not exceed 2 per cent of the total appropriation for said program. Education and Transportation Fund ........................100%

Income Eligible Waitlist (1596-2411)
FY24 Conference Committee and Final Budget: $25,000,000 (funding source: Education and Transportation Fund)
FY25 Governor: not funded
FY25 HWM: $30,000,000: For efforts to reduce the waitlist for income-eligible early education and care programs; provided, that funds may be expended for teen parents and homeless families at risk of becoming eligible for transitional aid to families with dependent children; provided further, that funds may be expended for informal early education and care benefits for families meeting income-eligibility criteria; provided further, that not less than
$15,000,000 shall be expended for the department’s fiscal year 2025 procurement of contracted early education slots; provided further, that the early education and care services funded from this item shall be distributed in a geographically-equitable manner that provides fair and adequate access to early education and care for all eligible individuals; and provided further, that not later than April 1, 2025, the department of early education and care shall submit a report to the house and senate committees on ways and means detailing the number of families removed from the waitlist through this item.
Education and Transportation Fund ........................100%

CPPI Pre-K Initiative (1596-2412)
FY24 Conference Committee and Final Budget: $5,500,000 (funding source: Education and Transportation Fund)
FY25 Governor: $21,000,000 For planning and implementation activities in cities, towns, regional school districts or educational collaboratives to expand pre-kindergarten or preschool opportunities on a voluntary basis to children who will be eligible for kindergarten within two school years, utilizing the Massachusetts Preschool Expansion Grant public-private partnership model; provided, that preference shall be given to districts in Gateway Cities or serving high percentages of high-needs students; provided further, that additional preference shall be given to districts that have completed strategic planning efforts that support expanding access to high-quality preschool; provided further, that notwithstanding any general or special law to the contrary, funds distributed from this item shall be deposited with the treasurer of the city, town, regional school district or educational collaborative and held in a separate account and shall be expended by the school committee of such city, town, regional school district or educational collaborative without further appropriation; provided further, that funds may be expended for Summer Step Up to support children entering kindergarten and early elementary school with academic and enrichment activities during the summer; provided further, that funds from this line item shall be expended in coordination with funds from item 3000-6025; and provided further, that appropriated funds may be expended for programs or activities during the summer months. (funding source: Education and Transportation Fund)
FY25 HWM: not funded

Early education and care capital improvements (1596-2429)
FY24 Conference Committee and Final Budget: $15,000,000 (funding source: Education and Transportation Fund)
FY25 Governor: not funded
FY25 HWM: not funded

Grants to early education and care providers for personal child care (1596-2430)
FY24 Conference Committee and Final Budget: see above, 3000-1042
FY25 Governor: not funded
FY25 HWM: not funded

Center-Based Rate Increase (1596-2434)
FY24 Conference Committee and Final Budget: $25,000,000 (funding source: Education and Transportation Fund). See above, line item 3000-1042.
FY25 Governor: $65,000,000 Rate Increase for Early Education and Care. For a child care provider rate reserve to sustain reimbursement rate increases from prior fiscal years and to further increase such rates for subsidized early education and care providers; provided, that rate increases funded from this reserve shall support salaries, benefits and stipends for professional development of early educators, as well as increase access to care for families; provided further, that funds appropriated in this item may be used to increase the reimbursement rate for all such providers using a methodology established by the department; provided further, that funds may be expended for increasing the daily add-on rate for comprehensive early education services for children with active cases at the department of children and families; provided further, that the commissioner of early education and care may transfer funds between this item and items 3000-3060 and 3000-4060, as necessary, for this purpose, under an allocation plan that shall detail, by object class, the distribution of the funds to be transferred and which shall be submitted to the house and senate committees on ways and means not less than 30 days before any such transfer; provided further, that $45,000,000 shall be used to annualize rate increases implemented in fiscal year 2024; and provided further, that $20,000,000 shall be used to fund additional rate increases for center-based and family child care providers in fiscal year 2025. (Funding source: Education and Transportation Fund)
FY25 HWM: $65,000,000 For a reimbursement rate increase for subsidized early education and care for salaries, benefits and stipends for professional development of early educators; provided, that funds appropriated in this item shall be used to increase the reimbursement rate by an appropriate percentage for all such providers; provided further, that funds shall be expended for increasing the daily add-on rate for comprehensive early education services for children with active cases at the department of children and families; provided further, that the commissioner of early education and care may transfer funds between line items 3000-3060 and 3000-4060, as necessary, for this purpose, under an allocation plan that shall detail, by object class, the
distribution of the funds to be transferred and which shall be submitted to the house and senate committees on ways and means not less than 30 days before any such transfer; provided further, that $45,000,000 shall be expended to annualize rate increases implemented in fiscal year 2024;
and provided further, that $20,000,000 shall be expended for additional rate increases for subsidized early education and care.
Education and Transportation Fund ........................100%

Childcare Affordability (1596-2435)
FY25 Governor: $75,000,000 For efforts to make child care more affordable for families and to reduce the waitlist for income-eligible early education and care programs; provided, that subject to appropriation, the department of early education and care may use funds to expand eligibility to child care financial assistance to additional families with incomes up to 85 percent of state median income; provided further, that educators working in early education, out of school time and residential facilities licensed by the department may be eligible for prioritization pursuant to department policies; provided further, that funds may also be expended for informal early education and care benefits for families meeting income-eligibility criteria established by the department; and provided further, that not later than April 1, 2025, the department of early education and care shall submit a report to the executive office for administration and finance, the joint committee on education and the house and senate committees on ways and means detailing the number of children placed in care through this item. (Funding source: Education and Transportation Fund)
FY25 HWM: not funded

Massachusetts State Scholarship Program (7070-0065)
funds Early Childhood Educators Scholarship, estimated $3.2 million annually.
FY22 Conference Committee and Final Budget: $130,500,000 [includes $3,600,000 for ECE Scholarship]
FY23 Conference Committee and Final Budget (GAA): $175,150,000 [includes $5,000,000 for ECE Scholarship]
FY24 Conference Committee and Final Budget: $175,650,000 [includes $5,000,000 for ECE Scholarship]
FY25 Governor: $175,188,311
FY25 HWM: $175,188,311 [includes $3,600,000 for ECE Scholarship]

High-Quality Early Education and Care Affordability Fund Transfer (Outside Section 180)
FY23 Conference Committee and Final Budget (GAA): $175,000,000 in a one-time transfer to this new trust fund. See budget language here.
Economic Development Bill, November 2022: $315,000,000
FY24 Conference Committee and Final Budget: Used to fund Commonwealth Cares for Children (C3) Stabilization Grants (3000-1045), see above.
FY25 Governor: Used to fund Commonwealth Cares for Children (C3) Stabilization Grants (3000-1045), see above.
FY25 HWM: Used to fund Commonwealth Cares for Children (C3) Stabilization Grants (3000-1045), see above.

Fiscal Year 2025 (FY25) Budget Timeline
FY25 starts on July 1, 2024 through June 30, 2025.