Governor Parson signed the Fiscal Year 2025 budget, which included an increase to the child care subsidy rate for the Fiscal Year (July 1, 2024, to June 30, 2025). We are grateful to the Governor and the General Assembly for recognizing the importance of child care during this legislative session and approving this rate increase.
Subsidy Provider Rates
The increase in Missouri’s child care subsidy rates will be in effect for services in October 2025 and corresponding payments made in November 2025. One significant distinction from the previous rates is the reduction from 19 geographic regions to five geographic groupings. Utilizing recent Census information, these five geographic groupings were determined based on population data and geographic proximity to densely populated areas. This change offers providers a more user-friendly way to identify their rates and increases confidence that their rates reflect the child care market in communities throughout Missouri.
The new geographic groupings are by county and include the following five categories:
- Rural
- Micropolitan
- Metropolitan
- Urban
- Dense Urban
To stay within our budget, rate increases were capped at 20% relative to the rates currently in effect. If the new rates result in a decrease to a provider’s current rate due to their current rate being at or above the percentile based on the 2024 market rate survey, please know that providers will be held harmless and will maintain the current rates in effect.
The rate differential percentage did not change. Providers approved for a rate differential (e.g., enhanced rate) will continue to receive these as follows: 20 percent for accredited programs, 30 percent for accredited programs with at least half of the children subsidy-eligible, and 25 percent for programs serving children with special needs.
With this rate change, provider payments will be calculated as follows: the state base rate plus any differential pay minus the sliding fee amount. As a reminder, the parent will be responsible for paying the sliding fee to the child care provider, as well as any co-payments that a provider may charge, which cannot exceed the non-subsidy rate charged by the child care program.
Sliding Fee Scale
The sliding fee amount for families in Transitional Levels of Child Care Subsidy will change for initial eligibility determinations and re-certifications, beginning in November 2025. The families’ responsibility or sliding fee will be calculated based on their income and the federal poverty level, as required by state and federal regulations. You can learn more about the sliding fees and families’ responsibility to pay in the updated Child Care Subsidy Brochure.
Although the sliding fee scale is changing, this will not be an immediate change for families; they will continue to pay according to their eligibility and income amounts, until the family’s next re-certification for eligibility. At that time, the family’s eligibility letter will show the new sliding fee amount. Until then, the current payments and sliding fees will continue.
The sliding fees going into effect for initial eligibility determinations and re-certifications in November 2025 are as follows:
| Transitional Level | Full Day | Half Day | Part Day |
| Transitional Level 1 (151 to 185% poverty level) | $7.50 full day | $3.75 half day | $2.50 part day |
| Transitional Level 2 (186 to 215% poverty level) | $8.75 full day | $4.40 half day | $2.90 part day |
| Transitional Level 3 (216 to 242% poverty level) | $10.00 full day | $5.00 half day | $3.30 part day |
Families can review the chart below that includes income guidelines and sliding fee amounts, effective November 2025.
If families have any questions regarding their sliding fee amount, they can review their most recent eligibility letter to find their current sliding fee amount, or contact their eligibility specialist at the Office of Childhood.