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:

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.
In partnership with an employer or consortium of employers; and/or
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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Resilient Texas Job Market Shows Industry-Specific Growth as Unemployment Remains Stable

April 22, 2026

The total number of nonfarm jobs in Texas registered at 14,354,600 after decreasing by 8,500 positions in February. Over the year, the state added 73,800 jobs for an annual nonfarm growth rate of 0.5 percent, outpacing the national growth rate by 0.4 percentage points. Texas’ civilian labor force registered at 15,941,800 after decreasing by 13,400 over the month. Over the year, Texas’ civilian labor force has added 121,200 people. The seasonally adjusted unemployment rate in Texas remained stable at 4.3 percent. “Texas’ over-the-year growth trajectory remains strong because we have cultivated a pro-business climate that helps employers grow and generate new opportunities for working Texans,” said TWC Chairman Joe Esparza. “The Texas Workforce Commission is investing strategically in programs that foster long-term economic prosperity across all regions of our state.” The Professional and Business Services industry had the largest private sector over-the-month increase in February after adding 6,300 jobs. In addition, Manufacturing added 2,500 jobs over the month while Information added 200. Construction posted the highest annual growth rate of any major industry for the 19th month in a row at 2.7 percent in February. “The addition of more than 121,000 people to the labor force over the year reinforces the need to make sure all Texans can participate in—and benefit from—our evolving economy,” said TWC Commissioner Representing Labor Alberto Treviño III. “The Texas workforce system is addressing the needs of today while anticipating those of tomorrow through initiatives like Texas Intern Network, which connects young Texans with employers.” The Midland metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.3 percent in February. It was followed by the San Angelo MSA at 3.5 percent and the Abilene MSA at 3.6 percent. “The foundations of the Texas economy are strong, and our employers and workers are resilient and adaptable,” said TWC Commissioner Representing the Public Brent Connett. “It’s encouraging to see robust growth surging across key industries like Construction and Professional and Business Services, signaling that there is ample cause for optimism.” 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 March is scheduled to be released on Friday, May 1, 2026, at 9:00 a.m. (CT).

TWC Announces Funding Opportunity for Adult Diploma Workforce Program

April 22, 2026

The Texas Workforce Commission (TWC) is now accepting applications for its Workforce Diploma Pilot Program. This funding opportunity is intended to support programs that help adult learners in Texas obtain a high-school diploma, earn industry-recognized credentials, and develop employability skills. The Workforce Diploma Pilot Program is designed to create new career pathways for adult learners. The program connects adults who have not completed high school with education providers that offer a combination of academic instruction, career training, and supportive coaching. Eligible applicants must be authorized to grant a high school diploma in Texas or partner with an accredited entity that is authorized. Applicants are also required to have at least two years of experience in dropout reengagement services for adult students. This includes experience in academic assessments, proactive coaching, employability skills training, and preparation for industry-recognized credentials. Interested organizations must submit their completed responses by May 5, 2026. The complete request for qualifications (RFQ), including all requirements and submission documents, can be found online at: https://www.txsmartbuy.gov/esbd/3202600137 . Organizations must use this portal to submit their response. All questions regarding this RFQ should be emailed to vendorproposals@twc.texas.gov .