Colorado families will soon be able to recover money they paid for childcare application, deposit, and waitlist fees if their children do not receive a spot at the center within six months.
Senate Bill 25-004, which will take effect at the start of next year, aims to reduce the financial burden on parents searching for childcare. The law requires childcare providers to issue refunds when families submit written requests, though providers can keep a reasonable administrative fee to cover costs. The Colorado Department of Early Childhood set this administrative fee at $25.
The financial pressure on families searching for childcare is significant. Many parents pay $100 or more per application, with some families joining 15 or more waitlists simultaneously, resulting in total costs reaching hundreds of dollars that previously had no chance of recovery.
Childcare Fees Refund
One representative noted that a constituent joined 16 waitlists, each costing between $100 and $200. Colorado ranks among the nation's most expensive states for childcare, with costs ranging from $486 to $1,645 per month depending on location, and the state's average monthly cost reaching $1,001. In some counties, childcare expenses exceed the cost of college tuition and monthly rent combined, according to CPR News.
Under the new law, the refund applies only if a family is not offered enrollment within six months of paying the fee. Families who receive an offer but decline it are not eligible for refunds. Additionally, if a family enrolls in a childcare program and signs a contract, the contract terms are not subject to the law's requirements.
The law also mandates greater transparency from childcare providers. Centers must now disclose their tuition and fee schedules when families request pricing information, join a waitlist, enroll in the program, or when fees change. While providers are not required to post this information publicly, they must provide it upon request. When admitted to a program, families can also credit any deposit paid toward their first month of childcare expenses.
The requirements apply to private childcare programs but exclude those in the Universal Preschool Program, Colorado Child Care Assistance Program, and Head Start. This means families using subsidized childcare programs or public preschool options are not affected by the new rules.
Helping Parents and Families
Enforcement falls to the Colorado Department of Early Childhood, which will review compliance during regular inspections or when complaints are filed, the Colorado General Assembly reported. Providers who fail to comply after a 30-day warning period can face disciplinary action, though the department will not penalize centers for good-faith errors or first-time violations.
The legislation had bipartisan acknowledgment of the problem. Lawmakers emphasized that childcare expenses force families into difficult choices about work and finances. According to recent data, half of Colorado parents have sacrificed work hours, taken unpaid time off, quit jobs, or avoided job searches due to childcare needs. The new law represents an effort to provide tangible relief to working families managing these competing pressures.
The law takes effect January 1, 2026, but families cannot request refunds until six months have passed since paying fees. This means the earliest refunds can be requested in July 2026, as per Chalkbeat.
