Washington Will Implement New Child Care Billing Rules
Providers must adapt to stricter state subsidy reimbursement guidelines starting October 1.
Updated on Sept. 23, 2026 in Child Care
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The Washington Department of Children, Youth and Families will launch updated billing rules for child care subsidies on October 1, 2026. These changes aim to align taxpayer payments more closely with verified attendance records following a state audit.
Why it matters
The new guidelines respond to Substitute House Bill 2689, which seeks to protect public funds by limiting reimbursement claims for excessive absences. This shift follows an audit that questioned $37 million in past subsidy payments due to missing records and overbilling concerns.
Auditors identified 14 questionable payment instances totaling $6,123 within a sample of 59 providers. These findings underscore the $37 million in questioned costs the state is now working to recoup.
The players
Washington Department of Children, Youth and Families
The state agency responsible for overseeing child care licensing, subsidy administration, and family support services.
The details
The agency now mandates that providers bill based strictly on verified child attendance, allowable holidays, and professional development days. The updated rules restrict the total number of absent days a provider can claim for payment each month. To support these changes, the department is updating its prepayment verification systems and increasing staff oversight.
Timeline
March 2026: State audit released and auditor interview conducted.
April 2026: Substitute House Bill 2689 passed by the Legislature.
October 1, 2026: New billing rules take effect for child care centers.
2027: New billing rules apply to licensed family homes.
The Home Front
These billing changes represent a tighter regulatory environment for state-funded family services in Washington. This move follows Substitute House Bill 2689 and marks a shift toward more stringent prepayment verification for public child care subsidies.
If you utilize state-subsidized child care, ensure your provider is aware of the October 1 changes to reimbursement claims. Verify that your child's attendance records are current, as new limits on claimed absences may affect billing eligibility.
The takeaway
The state is shifting to stricter attendance-based billing to ensure subsidy accuracy across Washington child care providers. Families should verify their records remain updated to avoid potential billing discrepancies under these new rules.
Further reading
Families looking for more information on regional support systems can review the Child Care section.
Source note: This article includes information reported by KOMO.
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Should government child care subsidies be paid only based on verified child attendance?
