Bill > HB241

This bill establishes a child care classroom contracts pilot program to be implemented by the Department of Human Services (DHS) beginning July 1, 2026, aimed at providing more stable funding for child care centers. Under the program, DHS will directly contract with licensed infant and toddler child care centers and group child care centers serving children aged six weeks to five years from families eligible for federal child care subsidies. The pilot program will provide contracts for at least one full classroom in each county, with contracts lasting a minimum of twelve months and potentially extending through the pilot period. DHS will monitor seat utilization and can adjust or terminate contracts based on enrollment trends and provider performance, and may even hire a service provider to help operate the program. The centers must not be part of a private educational institution to comply with the Hawaii State Constitution. The department is required to submit annual interim reports to the legislature in 2026, 2027, and 2028, and a final comprehensive report before the 2029 legislative session. The pilot program will automatically sunset on June 30, 2028, with the goal of developing procedures to subsidize child care and provide more financial stability for child care providers who traditionally rely on unpredictable tuition-based revenues.

Budget and Finance, Education, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=241&year=2026