Washington Will Implement New Child Care Billing Rules
Child care providers must adapt to updated attendance-based reimbursement policies beginning October 1.
Updated on Sept. 23, 2026 in Child Care
Live Poll
Should government child care subsidies be paid only based on verified child attendance?
Starting October 1, 2026, the Washington Department of Children, Youth and Families will launch new billing rules for child care subsidy payments. These updates aim to better align taxpayer funding with verified child attendance.
Why it matters
These changes respond to a state audit that questioned $37 million in past subsidy payments due to oversight issues like missing records and overbilling. The new guidance is intended to protect taxpayer dollars and improve fiscal accountability across the system.
A state audit reviewing 59 child care providers identified 14 questioned payment instances totaling $6,123. While the audit surfaced $37 million in potential overbilling, the final recoupment status for these funds remains ongoing.
The players
Washington Department of Children, Youth and Families
The state agency responsible for overseeing child care licensing and subsidy administration in Washington.
The details
The updated policy requires providers to submit reimbursement claims based strictly on verified attendance, authorized holidays, and professional development days. The system restricts the total number of absences a provider can claim, ensuring payments match documented care. To support this transition, the agency is upgrading its prepayment verification systems and expanding its oversight staff.
Timeline
March 2026: A state audit revealed oversight weaknesses in subsidy payments.
April 2026: Substitute House Bill 2689 passed the state legislature.
October 1, 2026: New billing rules take effect for child care centers.
2027: Billing rules will expand to include licensed family homes.
Health Landscape
This move represents a shift toward more rigorous fiscal oversight in state-funded family support programs. It follows the mandate of Substitute House Bill 2689 to modernize how taxpayer resources are verified and managed.
If you utilize state-subsidized child care, verify that your provider is aware of the new attendance reporting requirements to ensure continuous enrollment. Any questions regarding changes to care availability or billing documentation should be addressed through your primary child care provider.
The takeaway
The state is tightening verification procedures to prevent overbilling in child care subsidy programs. Families should stay informed by monitoring communications from their child care center to ensure all attendance records remain accurate and up-to-date.
Further reading
Learn more about the latest resources and policy updates for families at Washington Child Care.
Source note: This article includes information reported by KOMO.
Live Poll
Should government child care subsidies be paid only based on verified child attendance?
