SACRAMENTO, CA (MPG) – Assembly Majority Leader Cecilia Aguiar-Curry announced new legislation aimed at addressing the rising cost of childcare and low wages for providers, two issues supporters say strain families and the state’s workforce.
Assembly Bill 1981, titled the True Cost of Child Care Act, would require the California Department of Social Services to provide a timeline for updating reimbursement rates to reflect the actual cost of care. The bill also calls for regular progress updates to the Legislature to ensure accountability.
“Childcare is essential to our workforce and economy, yet too many families are struggling to afford it while providers are underpaid,” Aguiar-Curry, D-Winters, said during a press conference.
State data cited by supporters shows many families spend between 20% and 30% of their income on child care, well above the federal affordability benchmark of 7%. At the same time, providers, most of whom are women, often earn less than $16 per hour without benefits.
Supporters say the gap has led to staffing shortages and reduced access to care. They argue that without affordable options, some parents leave the workforce, while providers struggle to keep their businesses open.
The measure has drawn backing from labor groups and advocacy organizations, including Child Care Providers United, United Domestic Workers, Service Employees International Union and Parent Voices.
Childcare providers who spoke in support of the bill described financial instability and uncertainty in maintaining their operations.
“AB 1981 is a critical step toward making that possible,” said Miren Algorri, a provider from San Diego County, referring to maintaining services while covering basic expenses.
Nancy Harvey, a provider from Oakland, said unexpected costs can threaten closures, leaving families without care. Sylvia Hernandez, a provider in Van Nuys, said the proposal would help move wages closer to a sustainable level.
Aguiar-Curry said the bill focuses on transparency and follow-through.
“AB 1981 brings transparency to the process, holds the state accountable, and keeps the focus where it belongs,” she said.