Notable Updates from the 2025–2027 Approved State Budget

The recently passed and signed Wisconsin state budget includes several items impacting child care, workforce development, and workers compensation.
Child Care & Early Education
- Wisconsin Shares Funding Increased: An additional $21.4M was approved due to rising caseloads, along with $137.2M to raise reimbursement rates to better match market value.
- Child Care Counts Program Removed: The Governor’s proposal for permanent funding was denied. Instead, $110M in one-time federal dollars will temporarily support providers through July 2026.
- New Access Support: $1M annually starting in 2026-27 will go to Wonder School Inc. for licensing and support services.
- Pilot Program on Ratios: A 2-year test will increase worker-to-child ratios and provide higher reimbursements for infants and toddlers.
- In-Home Child Care Expansion: A new category for “large family child care centers” allows up to 12 kids per home, easing space regulations to support more providers.
- Assistant Teacher Flexibility: Child care centers can now hire trained 16-year-olds, with limited unsupervised time allowed after age 18.
- New 4K Option: $66.1M will support a community-based school readiness program offering 4K instruction at child care centers, outside the public school system.
Workforce Investments
- Youth Apprenticeship Grants: Funding increased by $6M.
- Early College Credit Program: Receives $581K in additional support.
- CDL Training: $500K will extend the commercial driver grant program two more years.
- Technical College Enhancements:
- $8.3M in general aid.
- $2M for AI curriculum and credentials.
- $3M for free, open-source textbooks.
Workers Compensation Fee Schedule
- A new hospital-only fee schedule will help lower workers comp medical costs.
- Rates will be set by region at the 75th percentile of commercial prices, plus 20%.
- This is a first step toward broader reform, focused on cost savings for employers.
To learn more and see the full state budget, visit: https://doa.wi.gov/Pages/StateFinances/CurrentBiennialBudget.aspx