wa-law.org > bill > 2025-26 > HB 2438 > Second Substitute
The legislature finds that:
The share of families reporting difficulty securing a spot in licensed child care jumped from 22 percent in December 2021 to 58 percent in January 2022. The second most cited reason for staffing vacancies in licensed family homes is staffing issues and lack of staff capacity, and nearly 50 percent of child care centers report vacancies because of staffing issues. Licensed child care providers continue to struggle with recruiting and retaining staff in a tight labor market, especially as retail, hospitality, and service industries offer more competitive wages and benefits. Without targeted action, these access gaps in high quality care and their unequal impacts on women are likely to widen;
The 2020 child care policy recommendations by the child care collaborative task force recommended full funding for professional development, relationship-based professional development, and financial incentives to support providers in meeting staff qualifications, ongoing continuous quality improvement, and achieving high quality levels in early achievers and school-age quality standards;
When the Washington advanced college tuition payment program was enacted, the legislature envisioned that establishing a scholarship for those in financial need would be a permissible use of the moneys from the payment program account;
The Washington advanced college tuition payment program account in chapter 28B.95 RCW has a surplus of funding and is funded at a level of approximately 178 percent;
In June 2025, the internal revenue service issued an informational letter stating that section 529 of the internal revenue code does not explicitly restrict a state from transferring credit or certificate purchases in a qualified tuition program;
It is an appropriate use of a portion of the surplus from the Washington advanced college tuition payment program account to provide financial aid to students enrolled in eligible early childhood education programs; and
It is an appropriate use of a portion of the surplus from the Washington advanced college tuition payment program account to replace current funding for the early achievers program created in RCW 43.216.085 and the early achievers grant administered by the state board for community and technical colleges.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Community college" has the same meaning as in RCW 28B.50.030.
"Council" means the student achievement council.
"Eligible degree or certificate program" means:
An early childhood stackable certificate; or
An early childhood associate degree.
"Gift aid" means financial aid received from the federal Pell grant, the opportunity grant program under chapter 28B.50 RCW, the opportunity scholarship program under chapter 28B.145 RCW, or any other state grant or scholarship program that provides funds for educational purposes with no obligation of repayment. "Gift aid" does not include student loans or work-study programs.
"Office" means the office of student financial assistance.
"Recipient" means an eligible student who has been awarded the scholarship.
"Resident student" has the same meaning as defined in RCW 28B.15.012.
"Scholarship" means the supporting our early education degree seekers scholarship.
"Technical college" has the same meaning as defined in RCW 28B.50.030.
The supporting our early education degree seekers scholarship is established to provide up to 90 credits of tuition-free community or technical college for students enrolled in eligible early childhood education and assistance degrees or programs beginning in the 2027-28 academic year. In implementing and administering the scholarship, the office may collaborate with a statewide child care resource and referral organization.
To be eligible for the scholarship, a resident student must:
Have a family income at or between 61 to 150 percent of the state median family income, adjusted for family size as established and updated annually by the office;
Not have previously earned a bachelor's degree or higher;
Be enrolled at least part time in a community or technical college in an eligible degree or certificate program;
Complete the free application for federal student aid or the Washington application for state financial aid for the academic year in which the student seeks eligibility for the scholarship; and
Sign an attestation to work in an early learning center for at least two years upon completion of an eligible degree or certificate program.
Students who have previously earned an associate's degree and meet all eligibility requirements under subsection (2) of this section may only receive up to 30 credits of tuition-free community or technical college for eligible degree or certificate programs.
Qualifications for receipt and renewal of the scholarship include maintaining satisfactory academic progress toward completion of an eligible degree or certificate program as determined by the office and established in rule.
On August 1st of each calendar year, starting on August 1, 2027, the amount of $10,000,000 from the Washington advanced college tuition payment program account created in RCW 28B.95.060 must be used for recipient grant awards under the scholarship as outlined in this section. Of the amount provided from the Washington advanced college tuition payment program account created in RCW 28B.95.060, annually no more than $500,000 may be utilized for administration costs. Funding under this section may only be allocated if the actuarial funded status remains at or above 120 percent.
The value of a grant award:
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For students with a family income at or between 61 to 100 percent of the state median family income, adjusted for family size as established and updated annually by the office, must supplant any prorated award under the Washington college grant program created in RCW 28B.92.200 and is the difference between the recipient's tuition fees as defined in RCW 28B.15.020 and services and activities fees as defined in RCW 28B.15.041, less the value of any state-funded grant, including the college bound scholarship program established in chapter 28B.118 RCW and any scholarship, gift aid, or waiver assistance the recipient receives, for up to 90 credits to be earned within three academic years; or
For students with a family income at or between 101 to 150 percent of the state median family income, adjusted for family size as established and updated annually by the office, is the difference between the recipient's tuition fees as defined in RCW 28B.15.020 and services and activities fees as defined in RCW 28B.15.041, less the value of any state-funded grant, scholarship, gift aid, or waiver assistance the recipient receives, for up to 90 credits to be earned within three academic years; and
Includes student support and wraparound services, provided by each community or technical college, to reduce or help to reduce barriers that threaten completion of eligible degree or certificate programs. Support and wraparound services under this section may be provided no longer than the recipient receives benefits under the scholarship.
The early education scholarship account is created in the custody of the state treasurer. The state treasurer shall transfer $10,000,000 annually, beginning August 1, 2027, from the Washington advanced college tuition payment program account created in RCW 28B.95.060 to the account. Expenditures from the account may be used solely and exclusively for the supporting our early education degree seekers scholarship established in section 3 of this act.
The office may adopt, and revise as necessary, rules to implement this chapter.
Any claim filed challenging the validity of this act not filed before July 31, 2028, is forever barred, if not already barred by an otherwise applicable statute of limitations. By the effective date of this section, the council shall send a notification to include the provisions of RCW 28B.95.040 and the provisions of this act, and specifically of the limitations of this section, by first-class mail, to the last known address of each owner of a current tuition unit contract.
For purposes of this section, "owner" and "tuition unit contract" have the same meaning as in RCW 28B.95.020.
The student achievement council, in collaboration with the state board for community and technical colleges, shall conduct a study on the sustainability of the scholarship to include at a minimum the following information: Any increase in enrollments at community or technical colleges; any decreases in enrollments elsewhere at institutions of higher education; and changes in recipient persistence, completion, and time-to-degree rates in eligible degree or certificate programs.
The study must include an analysis on the demand for student services, such as advising and student success courses, recommendations to improve student services and outcomes, and the financial impact of the scholarship on recipients.
The student achievement council shall report its findings to the relevant committees of the legislature, in accordance with RCW 43.01.036, by October 18, 2029.
This section expires December 1, 2029.