New Law to Address the High Cost of Child Care Goes Into Effect

Legislation sponsored by Senator Janice Marchman, D-Loveland, and Representatives Jenny Willford, D-Northglenn, and Lorena García, D-Unincorporated Adams County, to address the high cost of child care goes into effect January 1, 2025.

SB25-004 requires application, deposit, or waitlist fees to be refundable after six months if a family is not given the chance to enroll their child in a child care program, minus a reasonable administrative fee. The law also requires private child care centers to provide a transparent fee schedule and refund process explanation upon registration, when joining a waitlist, or at the request of the family.

“It’s expensive to raise children in 2025, and families shouldn’t have to shell out thousands of dollars on waitlist fees and deposits for child care centers that don’t even offer their child a spot,” said Willford. “This law allows families to recover some of the dollars associated with applying for child care so they can put that money towards the actual care itself, making our state more affordable.”

“The rising cost of child care is a significant hurdle for countless families across Colorado,” said Marchman. “By establishing clear guidelines for application and waitlist fees as well as deposits, we can provide tangible relief to working families. With application fees often exceeding $175 per child, these costs add up quickly and put unnecessary pressure on household budgets. I am proud to have worked with Senator Faith Winter on this law, which continues her legacy by making child care more affordable and empowering more families to find the care they need.”

“Families shouldn’t have to budget for thousands of dollars worth of child care deposit and waitlist fees, especially when those fees are non-refundable,” said Garcia. “With the uncertainty of whether or not their application will be accepted, some families are seeing application and deposit costs pile up. Our new law allows families to request a refund for certain fees and deposits if they are not offered enrollment within six months, allowing families to save more of their hard-earned money.”

These requirements apply to private child care programs outside the Universal Preschool Program, Colorado Child Care Assistance Program, and Head Start. A center may charge a deposit, but if admitted, the deposit must go towards the tuition of child care. 

SB25-004 was also sponsored by the late Senator Faith Winter, D-Broomfield.