HB1147: HB1147 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 often falls short of what providers actually charge, and families also pay a separate family fee. This bill, called the Georgia Childcare for Economic Well-Being Act, would add a new grant program to Georgia law that covers that gap for each child enrolled in CAPS. Under the bill, the Department of Early Care and Learning would pay providers a grant equal to the difference between a provider's published rate and the CAPS reimbursement rate, plus the amount of the family fee. If there is not enough money to cover every child, the department would have to prioritize families with the greatest financial need. The whole program only takes effect if the General Assembly later passes a separate appropriations act that specifically funds it.

• Adds a new Code section (O.C.G.A. § 20-1A-19) creating a grant program to supplement CAPS reimbursement rates paid to child care providers.
• Defines key terms such as 'family fee', 'published rate', 'rate differential', and 'reimbursement rate' to set how grant amounts are calculated.
• Directs the Department of Early Care and Learning to pay each CAPS-enrolled child's provider a grant equal to the rate differential plus the family fee.
• Requires the department to prioritize grants for families with the highest financial need if appropriated funds are not enough to cover every eligible child.
• Makes the entire Act contingent on a future appropriations act that specifically funds it, so it has no effect unless the legislature later provides the money.

Families with children enrolled in the CAPS child care subsidy program, the child care providers who serve those families, and the Department of Early Care and Learning, which would administer the new grants and decide funding priorities if money runs short.

If funded, families using CAPS could see their child care providers paid closer to their actual rates, potentially reducing what families owe out of pocket through the family fee and easing financial pressure on child care providers who currently absorb the gap between their rates and state reimbursement.

• Section 1 names the law the 'Georgia Childcare for Economic Well-Being Act.'
• Section 2 adds O.C.G.A. § 20-1A-19, defining CAPS-related terms including 'rate differential' and 'family fee' used to calculate grants.
• Section 2(b) requires the department to award each CAPS child's provider a grant equal to the rate differential plus the family fee, paid the same way as regular CAPS payments.
• Section 2(c) requires the department to prioritize grants by financial need (income, family size, cost share) if funding is insufficient for all eligible children.
• Section 3 makes the Act effective only once a separate appropriations act specifically funds it and the money becomes available for spending.
• 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 for families