States Continue to Lead on Childcare Innovation: 2025 Update on Public-Private Partnerships

It’s been a few years since we first highlighted how states are taking the lead on childcare innovation, and a lot has happened. In recent conversations and reflections across the country, one thing stands out: the business community has gained steam on childcare. ​

A growing number of c​hambers of commerce and employers nationwide are stepping up to partner on solutions. We’re seeing thoughtful and ​exciting​​ momentum in public-private partnerships that make childcare more accessible and affordable for working families. The U.S. Chamber of Commerce Foundation and our partners ​are offering creative, localized solutions in​ t​​his space, helping catalyze and scale what works. This update offers a snapshot of where innovation is happening, especially through business engagement.

Below, our map highlights several state programs demonstrating how businesses are co-creating solutions. Learn about how each example shows a unique model of cost-sharing or collaboration that has emerged or expanded since 2022.

Across the nation, these examples show a clear trend: when businesses step up to support childcare, states are ready to meet them halfway (or even further). The momentum we first highlighted years ago has only grown since 2022. What’s noteworthy is the variety of approaches – there is no one-size-fits-all solution, but rather a laboratory of innovation across states:

- Some, like Michigan and North Carolina, are building networks that split costs three ways and expand gradually.

- Others, like Texas and Iowa, are using public funds to jumpstart employer-led facilities and capacity.

- States such as Kentucky, North Dakota, and New York are effectively matching or doubling employers’ contributions to make childcare affordable for more families.

- Meanwhile, Tennessee is forging new alliances between nonprofits and employers, and places like Wisconsin and Indiana’s​ Noble County have shown how sharing the cost of existing slots can quickly benefit workers and providers alike.

This flurry of public-private partnership activity underscores a fundamental point: the business community is a vital player in addressing the childcare crisis. Employers have a direct interest in reliable, affordable childcare – it affects attendance, productivity, and talent retention – and now they have models to act on that interest. State and local governments, for their part, are finding creative ways to leverage employer engagement, whether through matching funds, tax credits (not covered here, but also emerging), grants, or technical assistance.

As we look ahead, the commitment of businesses, large and small, and the leadership of states in enabling these partnerships assure us that childcare in America can become more accessible, affordable, flexible, and high-quality. These models lower walls and build bridges: between employers and providers, between government and industry, and ultimately between home and work for so many parents. By continuing to highlight and support such innovation, we aim to keep the momentum going. The examples above show that business, families, and states/localities are moving forward, together, to ensure our youngest citizens and their families have the support they need to thrive.