District of Columbia policies recognize that financially sustainable child care subsidy providers are fundamental to the success and growth of the District’s child care industry. To comply with federal law and to support child care providers in maintaining financial sustainability amidst a changing market, in 2018 the Office of the State Superintendent (OSSE) developed and conducted a cost estimation model methodology to further understand the actual costs of care at different levels of quality for different ages of children in child care homes and centers. The purpose of this report is to explain the development of the cost estimation models, share the findings and explain how results of the cost estimation models informed the Fiscal Year (FY) 2019 reimbursement rates for subsidized child care in the District.