Directs the Department of Health and Human Services, Division of Child Development and Early Education (Division), to increase the child care subsidy market rates to the 75th percentile in three-, four-, and five-star-rated child care centers and homes, beginning October 1, 2025.

Sets child care subsidy rates in counties that have a county rate below the State rate for center-based and home-based care, beginning October 1, 2025, at the 75th percentile statewide market rate for child birth through five years for licensed child care centers and homes. Allows application of the county market rate if it can be demonstrated that the application of the statewide ratio to a county with fewer than 50 children in each group is lower than the county market rate and would inhibit the ability of the county to purchase child care for low-income children.

Appropriates $110 million in recurring funds to the Division for 2025-27 to implement the market increases and to establish a floor for child care subsidy rates as provided in the act. 

Effective July 1, 2025.