Challenges

Access, Scalability

Location

Tennessee

Stakeholders

Businesses, Nonprofits, State Government

Beneficiaries

Employees, Parents, Children, Childcare Providers

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Overview

In 2024, Tennessee introduced the Non-profit and Employer Workforce Grants program, a pilot investing $15 million per year for three years in grants that foster partnerships between employers and childcare providers.

Key Impact Metrics

  • $45M
    in available government funding
  • 2K+
    childcare centers eligible for grants

Problem

Tennessee’s childcare capacity was not meeting the needs of its workforce. The state recognized that traditional funding solutions might not solve these gaps. There was also a recognition that many childcare providers are small businesses and lack the capital to expand. There was a need to develop a new partnership model—getting employers and childcare providers to collaborate in creating innovative solutions that wouldn’t happen otherwise, with the aid of government support.

Solution

The Tennessee Department of Human Services launched the Non-profit and Employer Workforce (NEW) Grants program in 2024, funded by a dedicated Childcare Improvement Fund. The NEW grants program invites non-profit organizations to collaborate with private employers in developing innovative solutions to expand childcare access for working families. For example, opening a childcare center near a factory that runs until midnight for second shift workers. Grants may be used to pay for a facility expansion, staff hiring, upgrading equipment, but only if there’s a formal employer partner committing to use the slots or help sustain the program. The government of Tennessee emphasizes that proposals should focus on meeting the unique needs of employees’ families while also supporting the long-term financial health of childcare providers. For all awarded grants, state funds will match the level of monetary support invested by the employer throughout the grant term. The three-year pilot provides $15 million in government funding a year.

Results

  • Beneficiary ImpactUp to 100% of childcare development and infrastructure cost covered, and Tyson Food’s grant provided childcare slots for 100 children
  • Employee ImpactUp to 24,000 childcare provider employees impacted
  • Financial Results$15 million guaranteed government funding per year

Replication Tips

  • Focus on non-traditional needs: Use the program to fill gaps the market is not addressing. Encourage proposals that serve infants, odd hours, or remote areas. This targets the intervention to where it’s most transformative.
  • Require employer commitment: Make the employer’s financial involvement mandatory for further impact. Tennessee’s grant criteria demanded a formal employer partner and service to that employer’s employees. This ensures the resulting childcare is utilized by the workforce and that employers have an incentive to keep it going.

Suggested Implementation Timeline

~8-14 months

Sources