The Michigan Senate Housing and Human Services Committee on Tuesday morning passed a package of legislation designed to address the state's child care crisis through cost reductions, expanded options, and regulatory updates.
The bills, championed by Senate Democrats, seek to make child care more affordable for families while providing greater stability for child care providers across Michigan. The legislation package addresses affordability, supply, and regulatory barriers that have contributed to the ongoing crisis facing Michigan parents and communities.
Codifying the Tri-Share Program
One of the centerpiece provisions would codify the Tri-Share program into law, a bipartisan initiative that splits the cost of child care equally among three parties: employers, the state, and employees. The program has shown promise in making child care more accessible for working families while distributing the financial burden across multiple stakeholders.
Senate Bill 310, sponsored by Sen. Mallory McMorrow, would establish this cost-sharing framework as permanent law. Sen. McMorrow, a mother of a young daughter, emphasized the importance of making child care accessible so families can balance work and family responsibilities.
"When families are being forced out of the workforce due to the inaccessibility of child care, it's clear that there's a crisis," said Sen. Rosemary Bayer (D-West Bloomfield), sponsor of Senate Bill 311. "This package tackles the crisis from both the demand and supply side, and it plans for our future."
Tying Reimbursement Rates to Inflation
The legislation would also tie the Child Development and Care Program reimbursement rates to the pace of inflation. This provision aims to ensure that rates don't fall behind rising costs, which has been a significant problem for child care providers struggling to keep their doors open.
Madeline Elliott, a policy and program associate with Michigan's Children, testified that current scholarship rates in Michigan haven't risen since October 2024, despite inflation increasing by 2.7% during that time. Because of this, many providers don't participate in the child care program, leaving some of the families most in need without that option.
"The astronomical cost of child care, coupled with the hoops and hurdles providers must jump through to stay open, continues to fuel a crisis that impacts our families, workforce, and broader state economy," said Sen. Sarah Anthony (D-Lansing), sponsor of Senate Bill 313. "By cutting some of the costs and red tape facing providers, we can start to address the child care deserts that exist throughout the state, especially in our rural communities."
Supporting Small-Scale Child Care Options
The bills would also support small-scale child care options by allowing small providers to watch children in alternative locations, such as churches or community centers, while maintaining similar regulations as traditional in-home centers. This provision aims to increase the availability of child care in communities where traditional center-based options may be limited.
Patricia Soutas-Little, who worked on a pilot program in Northern Michigan, testified that taking this approach statewide could help address child care shortages in rural areas. "It provides one more way to bridge that child care gap," Soutas-Little said.
However, not all providers support the expansion of microcenters. Tambra Craven, a Kalamazoo-area provider with 32 years of experience, questioned whether smaller centers should receive special treatment. "Call me old school, but after 32 years, a center is a center," Craven said. Lawmakers indicated they would examine some technical fixes to address concerns around wording and definitions.
Clarifying Child Neglect and Abuse Definitions
The Senate committee also passed a second package of bills designed to clarify definitions of child neglect and abuse, specifically excluding independent activities like walking or bicycling to school or playing outdoors from qualifying under child neglect statutes.
Sen. Sean McCann (D-Kalamazoo), sponsor of Senate Bill 312, supported the legislation, noting that child care providers play a crucial role in helping children succeed while parents maintain their careers. "Child care providers here in our state set children up for success so parents can maintain their careers and provide for their loved ones. I am thrilled to see this legislation take a step closer to the finish line," McCann said.
Current Pilot Programs
Currently, approximately 2,500 child care providers in Michigan are receiving stipends through a pilot program to boost their wages by $200 to $300 per month using state funds. However, this program is set to end in September 2027, which supporters argue creates uncertainty for providers already struggling with operational costs.
The state also pays providers to offer cheaper child care to some lower-income families through its Child Development and Care Program. By tying reimbursement rates to inflation, the new legislation aims to provide more certainty and consistency for providers going forward.
Next Steps
The bills now head to the full Senate floor for consideration. Similar legislation passed the Senate last legislative term but died in the House of Representatives, indicating potential challenges in getting comprehensive child care reform across both chambers.
Child care advocates and providers have emphasized the urgency of the situation. Sen. McMorrow noted that rising costs are making it increasingly challenging for families to make ends meet, from child care to groceries.
"This bill package is so crucial. By reforming our systems to make it easier to start and raise a family, we can help families worry less so they can focus on what matters most: spending time with their little ones," McMorrow said.
The legislation represents an important step forward in addressing Michigan's child care crisis, though its ultimate success will depend on passage by the full Senate and the House of Representatives.