The Texas Workforce Commission’s Childcare Expansion Initiative

Challenges

Access, Scalability

Location

Texas

Stakeholders

Businesses, Nonprofits, State Government

Beneficiaries

Job Seekers, Childcare Providers

Overview

The Texas Workforce Commission launched a $173 million Childcare Expansion Initiative to help employers and communities build and expand the childcare industry.

Key Impact Metrics

1K+
providers funded
$259M
government funds disbursed
~25K
childcare slots created

Problem

Texas was facing a childcare shortage, especially in rural areas limiting workforce participation. These issues was exacerbated by the COVID-19 pandemic, which led to closures of multiple childcare centers and workforce disruptions, which led many working families and employers struggled to find and afford infant and toddler care.

Solution

The Texas Workforce Commission was established in 2022 to increase the availability of high-quality childcare across Texas by providing financial and technical support to new and expanding childcare providers. The program provides start-up and initial operating grants. It was launched with an initial $75 million of funding, followed by an additional $159 million, and most recently, $25 million in expanded funding, totaling $259 million. The policy offers two types of awards—Start-Up Awards for providers seeking new or modified licenses and Initial Operating Awards for those who have received licenses after March 1, 2022—to offset costs like equipment, furnishings, educational resources, staffing, minor renovations, and outreach.

Results

Beneficiary Impact~25,000 childcare slots created
Employee Impact88% of parents found employment within one year of receiving childcare benefits from the program
Financial Results$259M government funds disbursed, resulting in approximately $9,360/childcare slot

Replication Tips

Provide operational and capital support: Combine grants for facility construction with start-up operational funding to ensure long-term viability.
Layer operational and capital support: Combine grants for facility construction with start-up operational funding to ensure long-term viability.
Provide funding in increments: To gauge demand, encourage prudence, and foster indirect marketing (i.e., public discussion about the program).