Idaho’s Child Care Expansion Grants: Public-Private Funding to Increase Childcare Seats

Idaho pioneered a Child Care Expansion Grants program that incentivizes employers and childcare providers to create new childcare slots.

Idaho, like many states, faces a severe childcare shortage: a gap of nearly 20,000 slots between children needing care and available licensed spots statewide. This shortage is especially pronounced in certain counties—including Canyon, Ada, and Bonneville—which are identified as childcare deserts. There were 74,670 children in need of care, but only 55,850 slots available. This shortfall created long waitlists at high-quality centers and made it difficult for working families to find care, impeding their ability to work.

In 2022, the state of Idaho introduced the Child Care Expansion Grants to address the significant shortage of available childcare seats across the state. The program, administered by the Idaho Workforce Development Council (WDC), provided grants of up to $15,000 for each new childcare slot created, with a total of nearly $15 million in initial funding from the American Rescue Plan Act (ARPA). This substantial subsidy helped with startup costs like construction and equipment. To ensure buy-in and long-term sustainability, applicants, which included employers, childcare businesses, or collaborations between them, were required to provide a matching contribution. The grants were awarded competitively, with priority given to projects in areas with high childcare gaps, those offering non-traditional hours, and proposals that demonstrated a solid plan for long-term staffing and sustainability. While the WDC received proposals for far more seats than could be funded, the initiative ultimately aimed to add about 2,850 new seats statewide.

• Leverage federal funds: Idaho seized a one-time federal funding opportunity to invest in lasting childcare capacity. Other regions can do similarly with stimulus or development funds.
• Ensure business financial buy-in: The grant match requirement compelling employers to contribute ensures applicants have a financial stake in the outcome. This also doubles public sector dollars.
• Streamline the grant process: Many childcare providers are small operations not used to complex grants. Idaho’s WDC made the application reasonably straightforward and provided technical assistance to applicants.