Policy Pulse #18
In each issue of the Policy Pulse, we share an overview of what’s happening in Massachusetts and national child care policy and information on what you can do to take action and join the movement for a transformed early education and care system. In each edition, you will also find resources, reports, and advocacy tools.
What To Know
Federal Notices Concerning Freezing Child Care Funds Have No Immediate Impact in Massachusetts
Earlier this week, the Department of Health and Human Services announced freezes to child care and family assistance programs in five states: California, Colorado, Illinois, Minnesota, and New York. The impacted programs include Child Care and Development Fund, Temporary Assistance for Needy Families, and Social Services Block Grant. The funding being frozen total over $10 billion between the five states.
While some reports earlier this week suggested funds might be frozen for all fifty states, as of the publication of this issue of the Policy Pulse, no additional fund freezes have been announced and the Massachusetts Department of Early Education and Care (EEC) anticipates no disruptions to the Child Care Financial Assistance (CCFA) program in MA. In addition, Massachusetts is in compliance with all of the federal government’s current data-reporting requirements. As of publication of this issue of the Policy Pulse, there have been no formal nor other official requirements imposed by the federal government regarding child care funding that currently directly impact Massachusetts providers.
Proposed Changes to Federal Child Care and Development Fund Rules
On January 5, the Trump Administration proposed a new rule regarding the Child Care and Development Fund, which is a program under the Child Care and Development Block Grant Act (CCDBG). CCDBG provides federal funding to states for child care subsidies (i.e., CCFA) for eligible low-income families with children under the age of 13. The new proposed federal rule rescinds policies put in place under March 2024 regulations issued by the Biden Administration.
The Trump Administration’s new rule removes prior federal requirements that states (a) limit CCFA family co-payments to 7 percent of family income, (b) provide some direct services through grants or contracts, (c) pay providers based on child enrollment (rather than attendance), and (d) pay providers prospectively (rather than giving states the option to pay prospectively or based on a reimbursement basis).
Massachusetts state law requires that providers receiving CCFA be paid based on enrollment and the Commonwealth is currently considering updates to the family fee schedule.
New York Governor Announces Plan to Provide Free Early Education and Child Care to Two-Year-Olds in NYC
On January 8, New York Governor Kathy Hochul announced her plan to partner with New York City Mayor Zohran Mamdani to expand New York City’s current Pre-K program. The plan provides free early education and child care to two-year-olds in New York City. We applaud Governor Hochul and Mayor Mamdani’s support of children and families!
Potential Federal Changes to Public Charge Rule Threaten Immigrant Status
In November the federal Department of Homeland Security (DHS) set in motion a public comment period to rescind the 2022 Biden Administration Public Charge rule. “Public Charge” is a test used to determine if an individual is likely to become primarily dependent on the government due to the use of (1) cash assistance for income maintenance (such as Social Security Income, Temporary Assistance for Needy Families, or “general assistance”) or (2) long-term institutional care paid by the government. A person that is likely to become a “public charge” is typically not allowed to enter the United States and may be ineligible to become a lawful permanent resident or green card holder (though exceptions are sometimes made).
Historically, an individual’s use of benefits such as SNAP/food stamps, WIC, and health care benefits, etc. were not considered in the public charge test. Under the Trump Administration’s proposal, DHS has expressed that it now intends to reinterpret “public charge” to include any past or future public benefit use, including “means-tested public benefits” such as SNAP. It could potentially even include CCFA. The reinterpretation of the public charge rule jeopardizes immigrants’ ability to enter the U.S. and/or to achieve green card or lawful permanent resident status and is a departure from years of immigration policy. You can find more information on public charge here and here.
The Massachusetts Department of Early Education and Care Held its December Board Meeting
The Board of Massachusetts’ Department of Early Education and Care (EEC) most recently met on December 10, 2025. Important decisions about the early education and care sector are made at monthly EEC board meetings, and you can read the wrap-up here! Some highlights from the December board meeting are:
A vote to approve EEC’s 2026-2030 Strategic Action Plan;
A discussion about EEC’s family and community support programs;
An update on EEC’s Family Advisory Council.
Joint Rule 10 Day
December 3 was Joint Rule 10 day, the day all Joint Committees in the Massachusetts Legislature (except the Health Care Financing Committee) must hold a hearing and make decisions on bills filed this legislative session and referred to committee(s). It is the deadline by which committees must vote to (a) advance a bill with a favorable report; (b) reject a bill (effectively ending the bill’s chance to become law); (c) extend the reporting deadline for a bill; or (d) send a bill to study. A bill sent to study authorizes the committee to study the measure being proposed. Bills that receive a favorable report continue through the legislative process while those that are rejected or sent to study do not. Find out which bills were reported out favorably by the Joint Committee on Education, which oversees most early education related bills.
Budget Season is Coming
Massachusetts’ state budget season begins in January when the Governor submits her budget proposal for Fiscal Year 2027 (FY2027). You can stay up to date with everything budget related through Neighborhood Villages’ FY2027 Budget Page. Stay tuned for more information on each step of the budget process and how to make your voice heard.
Consensus Revenue Hearing
On December 16, the state Executive Office for Administration and Finance and the Massachusetts House and Senate Ways and Means Committee members convened a public hearing to provide insight on the direction of the economy and anticipated state revenue available to fund the government for the next fiscal year. The state Department of Revenue (DOR) shared Massachusetts' revenue forecast. For FY2027, revenue is expected to grow between 1.2% and 3.1% over FY2026 levels. These projections suggest that the Massachusetts economy is in a period of slow growth.
DOR also discussed the impact of the Trump Administration’s “One Big Beautiful Bill” on Massachusetts. DOR Commissioner Geoffrey Snyder stated that the law will negatively affect state tax revenue, reducing it by an estimated $664 million in FY2026 and $282 million in FY2027. Snyder also discussed the Fair Share Surtax, which DOR expects to exceed their projected amount of $2.4 billion by between $528 million and $793 million. However in FY2027, DOR expects the surtax to decline between 10.6% and 1.3% below FY2026 levels. In addition to DOR, experts provided testimony about Massachusetts’ revenue, including Evan Horowitz, Executive Director of The Center for State Policy Analysis, and Alan Clayton-Matthews, a professor from Northeastern University.
Now, budget writers from the executive and legislative branch must agree to a consensus revenue number by January 15. This number will inform the Governor's budget proposal.
Research Sheds Light on the Impact of “C3” Operational Grant Funding in Massachusetts
Neighborhood Villages recently published research on the ongoing impact of Commonwealth Cares for Children (“C3”) operational grant awards to early education providers. Specifically, Neighborhood Villages explored how grants are impacting affordability, quality, equity, and the cost of care. This brief includes findings from the analysis, which utilized state administrative and survey data. Our findings reveal how child care programs with different characteristics have experienced changes in funding and how much of the cost of care C3 covers, on average.
What To Do
Make Your Priorities Known on the FY2027 Massachusetts Budget
ATTEND Neighborhood Villages’ Massachusetts Budget Bootcamp starting February 6 at 6:30pm. This is an online cohort experience for parents, educators, and any interested advocates, where we’ll collaborate on how to talk to your state legislators and make your community's needs a priority for lawmakers. Register here.
REACH OUT to the Governor’s office with your priorities for the FY2027 budget. The best way to contact the Governor’s office is through email.
Submit Written Comment on the Proposed Changes to Federal Child Care and Development Fund Rules
You may submit written comments to the federal government through the Federal eRulemaking Portal or by emailing OCCPolicyInfo@acf.hhs.gov. You can find more information here.
What’s Next
The next meeting of the EEC Board of Directors will be on January 14 at 1pm in Boston. A full schedule of meetings as well as recordings and meeting materials can be found here. We will share a full recap of this meeting in the issue of the Policy Pulse that will come out after the meeting.
Governor Healey’s FY2027 Budget proposal is expected at the end of January, followed by the MA House of Representatives Budget proposal in April.
The MA Legislature returned from recess on January 7, 2026. During the next six months, the MA House and Senate will take up bills in full session which committees voted out positively.