Policy Pulse #24
This issue marks two years of the Neighborhood Villages Policy Pulse! For the last 24 months, we have shared a monthly overview of what’s happening with Massachusetts and national child care policy and provided you information on what you can do to take action and join the movement for a transformed early education and care system. Thank you for your ongoing commitment - reading the Pulse, using the resources, and engaging in advocacy - as we navigate the complex and ever changing early education landscape together. We hope you will continue to work with us towards a transformed early education system, especially in these turbulent times. Let’s dive in!
What To Know
Massachusetts Fiscal Year 2027 State Budget Update
The Massachusetts state Legislature is still finalizing the Fiscal Year 2027 Budget. A Conference Committee consisting of three senators and three representatives are reconciling the differences between the House budget proposal and the Senate budget proposal. Once they finish negotiating, they will release a compromise Conference Committee Budget that the full House and Senate will vote on. Then the budget will go to the Governor to be signed into law, vetoed, or vetoed in part. Check out Neighborhood Village’s Budget page for everything you need to know about the proposals and the budget process.
The Massachusetts Department of Early Education and Care Held its June Board Meeting
The Board of Massachusetts’ Department of Early Education and Care (EEC) most recently met on June 10, 2026. Important decisions about the early education and care sector are made at monthly EEC Board meetings, and you can read the recap here! Some highlights from the June board meeting are:
An announcement that EEC will allow 133 new providers to participate in the Commonwealth Cares for Children Grant program;
An update on EEC’s Fiscal Year 2027 Budget;
A vote to approve an increase to the Child Care Financial Assistance reimbursement rate for Informal Child Care;
An update on EEC’s IT Modernization efforts for the Professional Portal; and
A review of EEC’s work in Fiscal Year 2026.
The Healey Administration Released Guidance on ICE Access to Sensitive Spaces
On May 28, Governor Healey released guidance to help organizations in Massachusetts understand their rights and responsibilities and enable staff to respond appropriately if federal immigration officers visit their site. The guidance was required under an Executive Order signed earlier this year by Governor Healey that prohibits certain new agreements that authorize police officers to carry out immigration duties, prohibits ICE from making civil arrests in non-public areas of state facilities, and prohibits the use of state property to conduct civil immigration enforcement operations. You can find the guidance for early education and child care organizations and schools here.
Federal Anti-Fraud Bills Continue to Move Through Congress
The House of Representatives passed H.R. 7726, the Stop Child Care Scams Act of 2026, which integrates eight separate bills focused on fraud in federal child care assistance programs into one. The bill is a threat to the early education and child care sector. It includes provisions that would give the U.S. Department of Health and Human Services unprecedented authority to withhold funding from the Child Care and Development Block Grant, bar child care providers from funding for non-fraudulent activity, burden states with costly activities, and more. The Child Care and Development Block Grant provides funding for Child Care Financial Assistance, Massachusetts’ subsidy program that helps eligible families with low incomes access child care. The bill is now in front of the Senate Committee on Health, Education, Labor, and Pensions.
Additionally, the House passed H.R. 8464, the Stopping Fraudulent Payments Act. The legislation would empower federal agencies – such as the Department of Health and Human Services, which issues payment to states to support families’ access to child care – to block payments if they have “sufficient reason to determine” the payment poses an “elevated” risk of fraud, or if the Secretary of the Treasury directs them to block payment under a similar rationale.
Massachusetts Legislature Passes Supplemental Spending Bill
The Massachusetts State Legislature passed and Governor Healey signed into law the FY2026 Fair Share Supplemental Budget Bill. The Fair Share Supplemental Budget uses surplus funds from the fair share tax, also known as the millionaire's tax. The fair share tax is an additional tax on households with incomes above $1 million. The budget includes $20 million for the early literacy or literacy launch, and $38.7 million for the income eligible waitlist and additional supports for the sector. The $38.7 million includes $10.7 million for EEC to procure contracted seats for FY2027, $8 million for early educator’s child care needs, and $7.5 million for EEC’s loan forgiveness program.
What To Do
Contact MA Conference Committee Members to Advocate for Early Education Funding in State Budget
As the Conference Committee decides how to reconcile differences between the budgets passed by the MA House and MA Senate, now is the time to let them know how funding for early education and care impacts your ability to operate, earn a living, and/or access care. See Neighborhood Villages’ brief that outlines the budget differences and click here to see a list of members of the Conference Committee and their emails.
Contact Your Senators to Express Impact of Anti-Fraud Legislation
Bills are working their way through the U.S. Congress that could significantly impact early education and care. Reach out to your U.S. Senators to urge them to support the early education and care sector and reject these bills. You can find your legislators' contact information here.
Families of Young Children: Sign Up to Contribute to Research
Neighborhood Villages is committed to policy that advances the interests of all people directly impacted by the early education and care sector. One of the ways we come to understand those interests is by conducting research through surveys, focus groups, and the like. If you are the parent or guardian of young children and you are interested in contributing to this research, please sign-up today using this link!
What’s Next
The Massachusetts FY2027 state budget is with the Conference Committee. The final legislative budget proposal is due July 1, 2026. The budget will then go to the Governor who has 10 days to sign it into law, veto it, or veto it in part.
The current state legislative session ends on July 31, 2026. Neighborhood Villages is monitoring action on bills impacting early education and care beyond the budget. Look for a recap of the full legislative session in next month’s Pulse.
Neighborhood Villages continues to monitor the impact of the Commonwealth Cares for Children (C3) operations grants for early education and care programs. Stay tuned for a brief with the latest analysis on the impact of this program.
The EEC Board of Directors will be on recess over the summer. A full schedule of meetings as well as recordings and meeting materials can be found here.
In July, a federal rule change to the Child Care and Development Fund (CCDF) will go into effect. The 2026 CCDF Final Rule removes the requirement for states to make four specific changes, and instead makes these changes optional for states: Cap family copayments to 7% of family income, provide some direct services through grants or contracts, pay child care providers prospectively, and pay providers based on a child’s authorized enrollment. Massachusetts already meets most of these requirements through state regulations and practice. However, other states are likely to see more of an impact from the rule change going into effect.