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2025 Session

Budget Amendments - SB800 (Floor Approved)

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ECE - Employer Cost-Share Pilot Program

Item 125.10 #3s

Item 125.10 #3s

First Year - FY2025 Second Year - FY2026
Education: Elementary and Secondary
Direct Aid to Public Education FY2025 $25,000,000 FY2026 $0 GF

Language
Page 201, line 28, strike "$560,180,474" and insert "$585,180,474".

Page 209, after line 45, insert:

"J. Employer Cost-Share Pilot Program

1. Out of this appropriation, $25,000,000 the first year from the general fund is provided to support an early childhood employer cost-share pilot program through public-private partnerships to increase the supply of high-quality early childhood care and education services by providing matching funds for employer contributions. The pilot shall be administered by the Virginia Early Childhood Foundation (VECF), in consultation with the Virginia Business Roundtable for Early Education, the relevant regional entities established pursuant to subsection D of § 22.1-289.05 of the Code of Virginia, and the Commission on Early Childhood Care and Education, with the objective of increasing the supply of quality early learning spaces to support working families by creating additional slots.

2. The VECF shall, in consultation with the Early Childhood Care and Education Commission, establish guidelines for the pilot program that address regional early childhood care and education supply challenges and prioritize areas of greatest need. Guidelines must consider differentiation of costs and income eligibility based on regional and income differences that prioritize low- and middle-income families. Guidelines shall require the employer to contribute, on average, 37.5 percent of the cost per slot. Employees shall contribute no more than 25.0 percent of the cost per slot, on average. Any unexpended funds at the end of each fiscal year shall not revert and be reappropriated for the same purpose in the next fiscal year until June 30, 2027.

3. Program guidelines shall be completed by November 1, 2025, and approved by the Early Childhood Care and Education Commission.

4. The VECF shall report to the Chairs of the House Appropriations, House Education, Senate Finance and Appropriations, and Senate Education and Health Committees on the status of the pilot program by November 1, 2026. The report must include the status of any awarded funds and updates on partnerships and recommendations on the continuation of state matching funds for the pilot program."



Explanation

(This amendment provides $25.0 million GF the first year to support an employer cost-share pilot program to provide additional early childhood care and education slots for working families in the Commonwealth. Pilot program funding could between 6,900 and 7,700 slots when combined with other actions from the introduced budget and the 2,440 additional slots included in Chapter 2.)