A Siskiyou County in-home child care provider was part of the bargaining committee that won a strong union contract for 60,000 early educators across California.
SACRAMENTO, CA – Child Care Providers United (CCPU), representing over 60,000 family child care providers statewide, has overwhelmingly ratified a three-year contract with California following intensive negotiations that included rallies, marches, and vigils throughout 2025.
Immediate Financial Relief The 2025-28 agreement, formalized through SB 151, delivers comprehensive funding across multiple areas. Annual cost-of-living adjustments totaling $37 million will provide ongoing support, while $90 million in one-time stabilization payments will reach providers before year’s end. Additional ongoing funding includes $80 million annually for retirement benefits, $100 million for healthcare, and $15 million for professional development and continuing education.
“The stabilization payments have been a blessing by allowing me to pay my staff and keep my doors open,” said Pamela Rocha, a Siskiyou County provider who served on the bargaining committee. Rocha, a United Domestic Workers member, who continued operating her facility while undergoing breast cancer and multiple sclerosis treatments, emphasized the challenge of retaining quality staff in an underfunded industry.
Operational Improvements Beyond financial provisions, the contract addresses systemic payment issues that have strained provider operations. The agreement establishes clearer timelines for reforming provider compensation and commits to beginning monthly payments at month’s start rather than month’s end—eliminating cash flow gaps that have forced providers to rely on credit cards for operating expenses. The contract also preserves enrollment-based payment structures rather than daily attendance calculations, providing more predictable revenue streams for planning and staffing decisions.
Industry Crisis Continues Despite these gains, fundamental challenges persist. State data indicates 73% of California child care providers serving children in state programs cannot pay themselves salaries due to reimbursement rates that fall short of actual care costs. The industry continues losing an average of 24 providers daily, with many working excessive hours—some reporting as little as three hours of sleep nightly due to round-the-clock care responsibilities.
October negotiations will focus on achieving full cost-of-care reimbursement, which providers consider essential for long-term industry stability. Any resulting agreements could be implemented beginning with the 2026-27 state budget cycle. The contract includes provisions allowing renegotiation of rate increases if the legislature allocates additional funding in future budgets, creating flexibility for further improvements.
This contract represents significant progress in recognizing child care as essential infrastructure, though stakeholders acknowledge it as an interim solution pending comprehensive reimbursement reform.
