Policy Pulse #19
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. In this issue, we discuss updates to the Massachusetts FY2027 budget forecast, the Department of Early Education and Care (EEC’s) new strategic plan, and federal updates. Let’s dive in.
What To Know
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 January 14, 2026. 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 review of EEC’s proposal to increase their Child Care Financial Assistance reimbursement rates for center-based care and family child care;
An update on the Commonwealth Cares for Children Grant Program; and
An update on the Employer Child Care Innovation Fund.
Federal Judge Halts Freeze on Child Care and Social Assistance Programs in Five States
On January 8, a federal judge in New York temporarily paused the federal government’s freeze of $10 billion that would fund child care and other social assistance for eligible low-income children in five states. The government initiated the freeze as the states’ lawsuit against it moves forward. The judge also ordered the government to remove any restrictions on the states’ ability to draw down funds for the programs. The impacted states are California, Colorado, Illinois, Minnesota, and New York. The programs include the Temporary Assistance for Needy Families program, the Child Care and Development Fund, and the Social Services Block Grant.
Consensus Revenue Budget
On January 14, the Massachusetts Legislature released the Consensus Revenue Agreement for FY2027. The total expected state revenue available for FY2027 is $44.9 billion (up $1 billion from FY2026). This includes $2.7 billion in Fair Share revenue, which helps fund early education and $70 million in first time funds from an ilottery with funds designated for early education–the ilottery was passed in 2024 and will be implemented for the first time in FY2027. The Consensus Revenue Agreement is an important step in the budget process and gives insight into how the Legislature will be considering allocating funds as they develop their budget proposals for the coming fiscal year. It is important to remember that the Commonwealth currently receives over $15 billion in federal funds which are appropriated through the state budget.
Trump Administration Orders Review of 14 States’ Federal Funding
On January 20, the Trump Administration ordered most federal agencies, including the Department of Health and Human Services (HHS) which oversees child care, to conduct a review of Massachusetts and 13 other states' federal funding to “facilitate efforts to reduce the improper and fraudulent use of those funds.” The review does not currently include a freeze in funding.
EEC Strategic Action Plan
The Department of Early Education and Care (EEC) has posted its updated strategic action plan. The plan covers the years 2026 to 2030 and serves as EEC’s guiding document and roadmap to make additional progress with respect to improving access, affordability, program stability, workforce supports, program quality, and its internal infrastructure.
What To Do
Stay Up to Date as the Massachusetts FY2027 Budget Season Unfolds
ATTEND Neighborhood Villages’ Massachusetts Budget Bootcamp starting Tuesday, February 3 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.
JOIN Neighborhood Villages and Strategies for Children for Budget Breakdown: Governor Maura Healey's Fiscal Year (FY) 2027 State Budget Proposal on Wednesday, February 11 from 6:30pm - 7:30pm on Zoom. Together, we will review Governor Maura Healey's FY2027 state budget proposal and gain a better understanding of the Massachusetts state budget process, the impact on funding for early education and care, and what you can do to advocate for a stronger early childhood system across the Commonwealth. Everyone is welcome with registration. Interpretation from English to Spanish and Portuguese was provided by Excel Linguistics. The meeting will be recorded.
Submit Written Comment on the Proposed Changes to Federal Child Care and Development Fund Rules
The Department of Health and Human Services (HHS) is proposing to undo several changes to the Child Care and Development Block Grant program that went into effect in 2024. Public comments are important both to affect the current decision and to put on record the impact that policies like reimbursements based on enrollment, capping family fees, and prospective payments have on families and providers. 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. Comments are due by February 4, 2026.
What’s Next
The next meeting of the EEC Board of Directors will be on February 11 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 on Wednesday, January 28, 2026. Check out Neighborhood Villages’ FY2027 Budget page for key information on the budget proposals.