HB 1147: Georgia Childcare for Economic Well-Being Act; enact

Georgia's Childcare and Parent Services (CAPS) program helps low-income families pay for child care, but the state's reimbursement rate to providers is often lower than what providers normally charge (their published rate), and families also pay a separate family fee based on income. This bill, called the Georgia Childcare for Economic Well-Being Act, would set up a new grant program at the Department of Early Care and Learning to close that gap. For each child in the CAPS program, the department would pay the provider a grant equal to the rate differential (the difference between the provider's published rate and the reimbursement rate) plus the family's fee. If appropriated money isn't enough to cover every child, the department must prioritize families with the greatest financial need, based on income, family size, and their share of child care costs. The whole law only takes effect if the General Assembly specifically appropriates money for it in a future budget act.

• Creates a new grant program at the Department of Early Care and Learning to supplement CAPS program reimbursement rates paid to child care providers.
• Directs the department to pay providers a grant equal to the rate differential (gap between published rate and reimbursement rate) plus the family fee for each CAPS-enrolled child.
• Requires the department to prioritize grants for the highest-need families if funding isn't enough to cover every child in the program.
• Defines key terms like 'reimbursement rate,' 'published rate,' 'rate differential,' and 'family fee' for use in administering the grants.
• Makes the entire Act contingent on the General Assembly appropriating specific funds for it in a future budget bill.

Families receiving CAPS child care subsidies, the child care providers who serve them, and the Department of Early Care and Learning, which would administer the new grant program and set priorities if funding falls short of covering every eligible child.

If funded, the bill would reduce the financial gap providers absorb when the state's reimbursement rate falls short of their normal rates, and could lower or offset what families pay through the family fee, potentially making licensed child care more accessible and financially sustainable for both providers and low-income families.

• Section 1 names the law the 'Georgia Childcare for Economic Well-Being Act.'
• Section 2 adds new Code Section 20-1A-19, defining CAPS program terms including 'family fee,' 'published rate,' 'reimbursement rate,' and 'rate differential.'
• Subsection (b) requires the department to award each CAPS-enrolled child a grant equal to the rate differential plus the family fee, paid directly to the provider.
• Subsection (c) requires the department to prioritize grants for families with the highest financial need if appropriated funds are insufficient to cover all eligible children.
• Section 3 makes the Act effective only once the General Assembly specifically appropriates funds for it in a budget act referencing this Act.
• Section 4 repeals conflicting laws.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Phil Olaleye (D, HD-059)Primary sponsor
• Lydia Glaize (D, HD-067)
• Rick Townsend (R, HD-179)
• David Wilkerson (D, HD-038)
• Karlton Howard (D, HD-129)
• Teddy Reese (D, HD-140)

• child care assistance
• CAPS program
• early childhood education
• state funding
• family financial assistance