The Maryland State Department of Education (MSDE) is recommending increased reimbursement rates for the majority of Child Care Scholarship program providers under the 2024 Market Rate Survey (MRS) and Narrow Cost Analysis (NCA) released on February 11, 2025. Once implemented on September 1, reimbursement rates will rise or remain stable for most providers across regions.
The Child Care Scholarship (CCS) program helps eligible families in Maryland pay for high-quality child care and early education programs. Conducted in close partnership with local stakeholders—including the Maryland Family Network, Maryland State Child Care Association, Maryland State Family Child Care Association, and Family Child Care Alliance of Maryland — the survey and cost analysis help ensure adequate reimbursement to participating CCS program providers. Program participation has dramatically increased from approximately 21,000 children in January 2023; it now serves more than 41,000 children. The last market rate study was conducted in 2021.
“Together, these tools help to ensure that Child Care Scholarship program reimbursement rates are not only competitive but move the overall field closer to the true cost of care,” said Dr. Carey M. Wright, State Superintendent of Schools. “This comprehensive analysis strikes a balance between expanded accessibility and the ongoing viability of child care programs.”
In keeping with state statutes and the Governor’s budget, MSDE recommends using the 60th percentile of the market rate study and cost analysis to determine reimbursement rates. The new Market Rate Survey takes into account increased post-pandemic costs and inflationary pressures on workforce and supply expenses. As the lead agency for the program, MSDE is required to set provider payment rates based on either a market rate survey or an alternative methodology, such as a cost estimation model.
The Market Rate Survey gathers data on current childcare prices to inform scholarship reimbursement rates, while the Narrow Cost Analysis examines actual operating costs, including staff wages, rent, and supplies. Reimbursement rates vary by provider type (center, letter of compliance, family child care, large family child care), age group, region, and Maryland EXCELS quality rating level.
Maryland currently has approximately 6,675 licensed providers, the majority of which are family childcare homes and childcare centers.
