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.

WSET Child Care

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