Texas Workforce Commission Provides Additional Support for Creation and Expansion of Child Care Businesses in Texas

Texas Workforce Commission • June 1, 2022

The Texas Workforce Commission (TWC) is offering start-up funding to support three goals — the expansion of child care in areas of the state that lack sufficient child care capacity, the additional supply of child care for infants, and child care created in partnership with employers. The Commission approved $75 million to increase the number of high-quality child care providers for working parents, including these new start-up grants. 


“The demand for child care is increasing as Texas continues record-setting job creation,” said TWC Chairman Bryan Daniel. “This program is intended to reduce the financial barriers associated with expanding centers or opening new centers.” 


Funding is available for child care center and home-based providers opening or expanding capacity after March 1, 2022:

  1. In a child care desert, defined as an area where the number of children younger than six years of age who have working parents is at least three times greater than the capacity of licensed child care providers in the area. Check the zip code here.
  2. In partnership with an employer or consortium of employers; and/or
  3. To serve infants (0-17 months) across the state.


The initiative, paid for with a portion of the state’s $5.86 billion in federal child care stimulus funding, is intended to reduce the costs of opening or expanding a child care program. The funds can be used for indoor and outdoor equipment and furnishings, educational resources, classroom and kitchen supplies, permitting fees, staffing costs, minor renovations, and outreach costs to recruit families and staff.


“We must find innovative ways to increase the capacity of child care providers for working families, especially for those with infants and those who live in child care deserts,” said TWC Commissioner Representing Labor Julian Alvarez. “This funding will also benefit child care industry workers as they care for our most precious resource in the Lone Star State: our children.”


Child care providers may be eligible to receive up to two awards: A Start-Up Award and an Initial Operating Award. Prospective providers interested in receiving funding must develop and complete a viable business plan. A free business coach is available for those applying, and one will be assigned if a business plan is not ready for approval.


“The child care industry is crucial to our state’s economy and the federal stimulus funding, totaling $5.86 billion, will continue to support the needs of the child care industry and Texas families,” said TWC Commissioner Representing Employers Aaron Demerson. “These funds not only come at a critical time for providers and families, they are essential to Texas employers as they work to recruit and retain individuals who need child care in order to be able to work.”


The Child Care Provider Expansion Initiative will open in June 2022. To learn more about this opportunity, go to the Child Care Provider Expansion Initiative website. You can also watch recorded information sessions about the program and application process.

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Texas added 43,400 nonfarm jobs in June to reach a total of 14,469,600 positions. Over the year, the state added 177,900 jobs for an annual growth rate of 1.2 percent, outpacing the national growth rate by 0.9 percentage points. Texas’ civilian labor force registered at 15,904,900 after adding 3,400 people over the month. Over the year, Texas’ civilian labor force has added 29,700 people. The seasonally adjusted unemployment rate in Texas registered at 4.4 percent. “Texas’ continued job growth is a testament to the strength of our employers and robust workforce development system,” said TWC Chairman Joe Esparza. “The addition of more than 177,000 jobs over the year reinforces Texas’ reputation among employers as the best place to start and grow a business.” The Professional and Business Services industry had the largest private sector over-the-month increase in June after adding 25,500 jobs. Leisure and Hospitality added 10,300 jobs over the month while Trade, Transportation, and Utilities added 6,400. “The growth of the Texas labor market highlights the incredible talent and dedication of our state’s workforce,” said TWC Commissioner Representing Labor Alberto Treviño III. “The Texas Workforce Commission is committed to ensuring every Texan has the support they need to thrive, whether through training opportunities to gain new skills or specialized programs that help our foster youth transition into successful careers.” The Midland metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.6 percent in June. It was followed by the San Angelo MSA at 3.9 percent and the Abilene MSA at 4.0 percent. “With an annual growth rate of 1.2 percent, Texas continues to outpace the national average and demonstrate economic resilience,” said TWC Commissioner Representing the Public Brent Connett. “Both job seekers and employers can seek customized career services and recruitment assistance by visiting our TWC website or their local Workforce Solutions office.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. * All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com . The Texas Labor Market Information Data for July is scheduled to be released on Friday, August 21, 2026, at 9:00 a.m. (CT).
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Workforce Solutions East Texas Child Care Services is proud to partner with the Panola County Chamber of Commerce to support child care leaders across the region. Through this partnership, the Chamber provides a welcoming meeting space for Directors Connect training designed to help early learning program owners and directors connect, learn, and grow together. The partnership was made possible through the support of Keri Perot-Vance, Executive Director of the Panola County Chamber of Commerce, whose commitment to community collaboration helped create a space where child care leaders can come together to share ideas, discuss challenges, and strengthen their leadership skills. The partnership began in 2025 in response to daycare owners expressing a need for accessible training opportunities. Recognizing this need, Panola County Chamber of Commerce graciously offered to host the Directors Connect training in its beautiful historic building. This collaboration provides child care professionals with the opportunity to earn professional development hours required to remain in compliance with Child Care Regulation and Texas Rising Star. Tonia Crawford and Aerial Jones, Business Industry Specialists for Child Care Services and facilitators of Directors Connect, say the program has evolved into so much more than a training opportunity. It has become a space for meaningful conversations, professional connections, and shared solutions. Through these gatherings, directors are strengthening their businesses, growing as leaders, and ultimately enhancing the quality of care provided to children and families throughout East Texas. Workforce Solutions East Texas Child Care Services is grateful for the Panola County Chamber of Commerce's ongoing support and looks forward to continuing this impactful partnership for years to come. Together, we are investing in stronger leaders, stronger child care programs, and stronger communities.
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