Challenges

Access, Worker Issues

Location

North Dakota

Stakeholders

Businesses, State Government

Beneficiaries

Employees, Childcare Providers, Parents, Children

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Overview

North Dakota’s “Working Parents Child Care Relief” program was introduced in 2023 to directly address the infant childcare shortage by providing a dollar-for-dollar match to employers who subsidize childcare for employees’ infants and toddlers.

Key Impact Metrics

  • $9.6M
    in funding allocated
  • 43
    employers participating so far
  • $963K
    of employer contributions so far

Problem

North Dakota had a severe lack of infant care slots and was simultaneously experiencing workforce shortages in sectors like healthcare and energy. Employers were losing trained workers due to childcare unavailability, especially for toddlers. Traditional subsidy programs often did not involve employers and had strict income limits.

Solution

In 2023, North Dakota introduced the Working Parents Child Care Relief pilot, a matching funding program where the state matches the contributions made by employers towards childcare. An employer must commit at least $300 or $150 per month per child for an employee’s infant/toddler care, and the state will match either of those funds. These funds go directly to the licensed childcare provider chosen by the employee. The program is targeted towards infants and toddlers, ages zero to six. To ensure the benefit targets those most in need, the program is limited to families earning up to 150% of the state median income. The program launched with a public awareness campaign, and early interest was reported across sectors, which saw this as a competitive perk for hiring.

Results

  • Beneficiary Impact43 employers participating so far
  • Employee Impact75% of employee’s childcare cost covered
  • Financial Results~2 million spent so far in combined government and employer funding

Replication Tips

  • Focus on select beneficiaries: Tailor the program to a specific age group or employee profile. By limiting to children under give, North Dakota addressed a specific critical need.
  • Set an income cutoff to target support: North Dakota chose 150% of the median income to ensure help goes to those with the most need. One could adjust these income thresholds based on the region.
  • Partner with business for promotion: To get employers on board, involve business groups in designing and promoting the program. North Dakota got interest from energy and tech businesses early.

Suggested Implementation Timeline

~8-14 months

Sources