﻿<?xml version="1.0" encoding="utf-8"?><CertifiedBill type="pl" xmlns="http://leg.wa.gov/2012/document"><EnrollingCertificate xmlns="http://leg.wa.gov/2012/document" type="hBill"><Table align="center" pubwidth="wide" width="504.0pt" fontFamily="Courier New"><Col width="252.0pt" /><Col width="228.0pt" /><TR><TDEnroll><Passage><PassedBy chamber="h"><PassedDate>March 11, 2026</PassedDate><Yeas>51</Yeas><Nays>45</Nays><Signer /></PassedBy><PassedBy chamber="s"><PassedDate>March 11, 2026</PassedDate><Yeas>33</Yeas><Nays>16</Nays><Signer /></PassedBy></Passage></TDEnroll><TDEnroll><Certificate><P><TextRun>I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is </TextRun><TextRun fontWeight="bold">SUBSTITUTE HOUSE BILL 2689</TextRun><TextRun> as passed by the House of Representatives and the Senate on the dates hereon set forth.</TextRun></P><Certifier /><CertifierPosition>Chief Clerk</CertifierPosition></Certificate></TDEnroll></TR><TR><TDEnroll><ApprovedDate /></TDEnroll><TDEnroll><FiledDate /></TDEnroll></TR><TR><TDEnroll><Governor /></TDEnroll><TDEnroll><P textAlign="center"><TextRun fontWeight="bold">Secretary of State</TextRun></P><P textAlign="center"><TextRun fontWeight="bold"> State of Washington</TextRun></P></TDEnroll></TR></Table></EnrollingCertificate><Bill type="bill" xmlns="http://leg.wa.gov/2012/document"><BillHeading><ShortBillId>SHB 2689.PL</ShortBillId><LongBillId>SUBSTITUTE HOUSE BILL 2689</LongBillId><AsAmended>SENATE</AsAmended><PLMessage><Message>Passed Legislature</Message><PLSession>2026 Regular Session</PLSession></PLMessage><Legislature>69th Legislature</Legislature><Session>2026 Regular Session</Session><Sponsors>House Appropriations (originally sponsored by Representatives Gregerson, Ormsby, and Macri; by request of Office of Financial Management)</Sponsors><BillHistory><ReadDate>READ FIRST TIME 03/02/26.</ReadDate></BillHistory><BriefDescription>Concerning the working connections child care program.</BriefDescription></BillHeading>

<BillBody>
<BillTitle>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.</BillTitle>
<EnactedClause />
<BillSection type="amendatory" action="amend">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>1</Value><TextRun>.  </TextRun></BillSectionNumber><SectionCite><TextRun>RCW </TextRun><TitleNumber>43</TitleNumber><TextRun>.</TextRun><ChapterNumber>216</ChapterNumber><TextRun>.</TextRun><SectionNumber>802</SectionNumber></SectionCite> and 2025 c 412 s 5 are each amended to read as follows:<Caption>Eligibility<TextRun fontFamily="Times New Roman">—</TextRun>General requirements.</Caption></BillSectionHeader>
<P>(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.</P>
<P>(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:</P>
<P>(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</P>
<P>(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.</P>
<P>(3) <TextRun amendingStyle="strikemarkleft">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:</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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.</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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:</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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.</TextRun></P>
<P><TextRun amendingStyle="strikemarkright">(5)</TextRun> 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.</P>
<P><TextRun amendingStyle="strike">(6)</TextRun> <TextRun amendingStyle="add">(4)</TextRun> The department must adopt rules to implement this section, including an income phase-out eligibility period.</P>
<P><TextRun amendingStyle="strike">(7)</TextRun> <TextRun amendingStyle="add">(5)</TextRun> The department may not consider the citizenship status of an applicant or consumer's child when determining eligibility for working connections child care benefits.</P>
<P><TextRun amendingStyle="strike">(8)</TextRun> <TextRun amendingStyle="add">(6)</TextRun> The income eligibility requirements in <TextRun amendingStyle="strike">subsections</TextRun> <TextRun amendingStyle="add">subsection</TextRun> (2) <TextRun amendingStyle="strike">through (4)</TextRun> of this section <TextRun amendingStyle="strike">do</TextRun> <TextRun amendingStyle="add">does</TextRun> not apply to households eligible for the working connections child care program under RCW 43.216.808 and 43.216.814.</P>
<History>2025 c 412 s 5. Prior: 2024 c 225 s 1; 2024 c 67 s 2; 2023 c 222 s 4; 2022 c 297 s 959; 2021 c 199 s 201. Formerly RCW 43.216.1368.</History>
<RCWNoteSection>
<AnnNote><NoteP><TextRun fontWeight="bold">Conflict with federal requirements<TextRun fontFamily="Times New Roman">—</TextRun>Effective date<TextRun fontFamily="Times New Roman">—</TextRun>2025 c 412:</TextRun> See notes following RCW 43.216.556.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Findings<TextRun fontFamily="Times New Roman">—</TextRun>Intent<TextRun fontFamily="Times New Roman">—</TextRun>2023 c 222:</TextRun> See note following RCW 43.216.800.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Effective date<TextRun fontFamily="Times New Roman">—</TextRun>2022 c 297:</TextRun> See note following RCW 43.79.565.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Effective date<TextRun fontFamily="Times New Roman">—</TextRun>2021 c 199 ss 201, 202, 301, 309, and 504:</TextRun> "Sections 201, 202, 301, 309, and 504 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2021." [2021 c 199 s 607.]</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Short title<TextRun fontFamily="Times New Roman">—</TextRun>Findings<TextRun fontFamily="Times New Roman">—</TextRun>Intent<TextRun fontFamily="Times New Roman">—</TextRun>Conflict with federal requirements<TextRun fontFamily="Times New Roman">—</TextRun>2021 c 199:</TextRun> See notes following RCW 43.216.770.</NoteP></AnnNote>
</RCWNoteSection>
</BillSection>
<BillSection type="amendatory" action="amend">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>2</Value><TextRun>.  </TextRun></BillSectionNumber><SectionCite><TextRun>RCW </TextRun><TitleNumber>43</TitleNumber><TextRun>.</TextRun><ChapterNumber>216</ChapterNumber><TextRun>.</TextRun><SectionNumber>828</SectionNumber></SectionCite> and 2025 c 424 s 957 are each amended to read as follows:<Caption>Child care subsidy rates<TextRun fontFamily="Times New Roman">—</TextRun>Use of cost model.</Caption></BillSectionHeader>
<P>(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.</P>
<P>(2)<TextRun amendingStyle="add">(a)</TextRun> 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.</P>
<P><TextRun amendingStyle="add">(b) Beginning July 1, 2027, child care subsidy base rates must achieve the 75th percentile of market for licensed or certified child care providers.</TextRun> 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.</P>
<P><TextRun amendingStyle="add">(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.</TextRun></P>
<P>(3)(a) The department shall <TextRun amendingStyle="strike">build upon the work of the child care collaborative task force to develop and implement a child care cost estimate model and</TextRun> use the completed child care cost <TextRun amendingStyle="strike">model</TextRun> <TextRun amendingStyle="add">methodology published in accordance with RCW 43.216.829</TextRun> 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. <TextRun amendingStyle="strikemarkleft">The department shall consider:</TextRun></P>
<P><TextRun amendingStyle="strikemarknone">(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</TextRun></P>
<P><TextRun amendingStyle="strikemarkright">(ii) Incorporating the rate model for nonstandard child care hours developed under section 306, chapter 199, Laws of 2021.</TextRun></P>
<P>(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.</P>
<P>(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.</P>
<History>2025 c 424 s 957; 2021 c 199 s 301; 2019 c 368 s 7. Formerly RCW 43.216.749.</History>
<RCWNoteSection>
<RevNote><NoteP><TextRun fontWeight="bold">*Reviser's note: </TextRun>This RCW reference has been corrected to reflect the reorganization of chapter 41.56 RCW by 2025 c 290 s 2.</NoteP></RevNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Effective date<TextRun fontFamily="Times New Roman">—</TextRun>2025 c 424:</TextRun> See note following RCW 9.46.100.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Effective date<TextRun fontFamily="Times New Roman">—</TextRun>2021 c 199 ss 201, 202, 301, 309, and 504:</TextRun> See note following RCW 43.216.802.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Short title<TextRun fontFamily="Times New Roman">—</TextRun>Findings<TextRun fontFamily="Times New Roman">—</TextRun>Intent<TextRun fontFamily="Times New Roman">—</TextRun>Conflict with federal requirements<TextRun fontFamily="Times New Roman">—</TextRun>2021 c 199:</TextRun> See notes following RCW 43.216.770.</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Findings<TextRun fontFamily="Times New Roman">—</TextRun>Intent<TextRun fontFamily="Times New Roman">—</TextRun>2019 c 368:</TextRun> "(1) The legislature finds that child care is a sector that is critical to the vitality and economic security of our state and communities and families, and that families in Washington face significant barriers to accessing and affording high quality child care. The legislature finds that Washington's committed caregivers and state investments and advancements in our quality rating and improvement system ensure that quality, culturally relevant child care supports children's healthy development and prepares them for success in school and in life. The legislature recognizes that provider diversity and cultural relevance are fundamental components of quality, and that parent choice is a priority throughout the state's early learning system.</NoteP><NoteP>(2) The legislature finds that the cost of quality child care is unaffordable for many families and state support is needed to ensure that all children and families in Washington can access safe, enriching child care.</NoteP><NoteP>(3) The legislature recognizes that expanding access to quality child care requires preparing the market of child care providers to meet existing and expanded demand. The legislature finds that the market of child care providers is shrinking, that child care deserts are expanding, and that fewer providers are offering services to working connections child care subsidy recipients. The legislature additionally finds that child care providers are unable to recruit and retain a qualified workforce; that wages in the industry remain among the lowest of all professions, at or near minimum wage; and that the relationship between a child and a qualified caregiver is of paramount importance to parents and, according to a rapidly accumulating body of brain science, is foundational to supporting healthy development.</NoteP><NoteP>(4) Further, while the system awaits systemic change, the legislature finds that steps must be taken to begin to preserve and expand access to child care for child care subsidy recipients, stabilize the child care industry, and reduce turnover in the workforce.</NoteP><NoteP>(5) Therefore, the legislature intends to promote high quality child care from diverse providers that is accessible and affordable to all families of Washington's children ages birth to twelve." [2019 c 368 s 1.]</NoteP></AnnNote>
<AnnNote><NoteP><TextRun fontWeight="bold">Short title<TextRun fontFamily="Times New Roman">—</TextRun>2019 c 368:</TextRun> "This act may be known and cited as the Washington child care access now act." [2019 c 368 s 9.]</NoteP></AnnNote>
</RCWNoteSection>
</BillSection>
<BillSection type="new">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>3</Value><TextRun>.  </TextRun></BillSectionNumber><P>(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:</P></BillSectionHeader>
<P>(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;</P>
<P>(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</P>
<P>(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.</P>
<P>(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.</P>
<P>(3) This section expires July 1, 2027.</P>
</BillSection>
<BillSection type="new" action="addsect">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>4</Value><TextRun>.  </TextRun></BillSectionNumber>A new section is added to <ChapterCite><TextRun>chapter </TextRun><TitleNumber>43</TitleNumber><TextRun>.</TextRun><ChapterNumber>216</ChapterNumber><TextRun> RCW</TextRun></ChapterCite> under the subchapter heading "subsidized child care" to read as follows:</BillSectionHeader>
<P>(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:</P>
<P>(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;</P>
<P>(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</P>
<P>(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.</P>
<P>(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.</P>
</BillSection>
<BillSection type="new" action="addsect">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>5</Value><TextRun>.  </TextRun></BillSectionNumber>A new section is added to <ChapterCite><TextRun>chapter </TextRun><TitleNumber>43</TitleNumber><TextRun>.</TextRun><ChapterNumber>216</ChapterNumber><TextRun> RCW</TextRun></ChapterCite> under the subchapter heading "subsidized child care" to read as follows:</BillSectionHeader>
<P>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.</P>
</BillSection>
<BillSection type="new" action="repeal">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>6</Value><TextRun>.  </TextRun></BillSectionNumber><P><SectionCite><TextRun>RCW </TextRun><TitleNumber>43</TitleNumber><TextRun>.</TextRun><ChapterNumber>216</ChapterNumber><TextRun>.</TextRun><SectionNumber>827</SectionNumber></SectionCite> (Prospective payments) and 2025 c 412 s 13 are each repealed.</P></BillSectionHeader>
</BillSection>
<BillSection type="new" action="effdate">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>7</Value><TextRun>.  </TextRun></BillSectionNumber><P>Section 4 of this act takes effect July 1, 2027.</P></BillSectionHeader>
</BillSection>
<BillSection type="new" action="emerg">
<BillSectionHeader><BillSectionNumber><TextRun>Sec. </TextRun><Value>8</Value><TextRun>.  </TextRun></BillSectionNumber><P>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.</P></BillSectionHeader>
</BillSection>
</BillBody>
</Bill></CertifiedBill>