Colorado’s Emerging and Expanding Grant Program

Challenges

Access, Scalability

Location

Colorado

Stakeholders

Businesses, Nonprofits, State Government

Beneficiaries

Parents, Childcare Providers, Job Seekers

Overview

The Colorado government deployed federal COVID-19 relief funds to offer grants that help employers and communities create new childcare facilities or expand existing ones, particularly in rural and underserved areas.

Key Impact Metrics

$19M
worth of government funds available
600+
funding applications received
$270K
invested in EPIC’s Design Lab technical assistance program

Problem

The Colorado government noted that even prior to the COVID-19 pandemic, more than half of Coloradans lived in licensed childcare deserts—a situation where there are three or more children under five years old for every available childcare slot. And at the offset of the pandemic, about 60% of families reported needing to change their childcare arrangements, while 10% of providers reported their desire to close their operations. This shortage created significant economic impacts for businesses, with absences and employee turnover costing employers anywhere from $400 million to $3 billion a year.

Solution

In 2021, Colorado introduced the Emerging and Expanding (E & E) Grant program to expand access and availability of licensed childcare in underserved communities throughout Colorado. Childcare providers could be awarded grants ranging from $3,000 to $50,000 to cover expenses related to the expansion of current capacity or the opening of a new childcare program. Examples of funding uses include coaching, professional development, learning and classroom materials, and capital improvements. To support these efforts, Colorado worked with Executives Partnering to Invest in Children (EPIC), a nonprofit business coalition. EPIC ran a childcare design lab program that coached interested employers through the feasibility and design of on-site childcare.

Results

Beneficiary Impact5,459 new childcare slots created across 37 counties
Employee Impact148 childcare centers and 115 family childcare home providers awarded funding
Financial Results$10 million disbursed in funding so far

Replication Tips

Prioritize underserved areas: Like Colorado did with rural areas and infant care, set criteria to score projects that meet the greatest needs. Maybe give higher points to projects in childcare deserts, or that create infant slots, or serve odd hours. This ensures the program tackles the toughest problems first.
Leverage specialist nonprofits for technical assistance: The Colorado government, for example, partnered with EPIC to run the childcare design lab program that coached interested employers through feasibility and design of on-site childcare.