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Child Care Expansion


The Child Care Provider 

Expansion Initiative

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Child Care Expansion Initiative

Texas Workforce Commission is launching a new initiative to build the supply of high-quality child care across Texas! The initiative will provide support to child care businesses creating new child care capacity after the licensing eligibility cutoff date for Child Care Relief Funding (which was February 28, 2022), specifically to offset costs incurred during launch and the first few months of operation.

Funding will soon be available to help you expand your existing child care business or launch a new one!

Who’s eligible?

You’re eligible to apply for funding if you want to expand the capacity of your existing child care business or want to open a new business, and you will meet at least one of the following criteria:

  • Located within a pre-defined child care desert (determined by location zip code);
    • A child care desert is defined in Texas Labor Code §302.0461(b)(2)(A)(i) 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. *Updated child care desert list coming soon.
  • Operating in a documented partnership with an employer or consortium of employers to provide care for their employees’ children; and/or
  • Increasing capacity for infants (0-17 months).

Workforce Boards and Community Organizations

Join us to hear the most recent updates about the Child Care Provider Expansion Initiative in our upcoming webinars on July 28 and July 29.

July 28, 2022 - 1:30pm CST

Register in advance for this webinar: 

Webinar Registration


July 29, 2022 - 9:30am CST

Register in advance for this webinar:

Webinar Registration


View previous informational session recordings here:

June 24th: Recording and June 28th: Recording

May 24th: Recording and May 26th: Recording

Center-based & Home-based Child Care Businesses:

  • Child care businesses that have not yet applied for a permit from CCR to open or expand their child care business will be eligible to apply for both Start-Up Award funding, to help offset operations costs associated with preparing to open or expand their child care business, and Initial Operating Award funding, to help offset the first three months of operating costs.
  • Child Care businesses that have already begun the permitting process with CCR to open or expand their child care business (between March 1 and the date of applying for this initiative), will be able to apply for Initial Operating Award funding to help offset the first three months of operating costs.
  • Child care businesses that received their permit from CCR prior to March 1, 2022, are ineligible.

Texas Employers:

  • This funding presents a unique opportunity for Texas employers to collaborate with local child care providers to partner in offering high quality child care for their employees, as well as the parents within your community.

Workforce Boards:

  • Do you know child care providers who are interested in expanding or opening up new locations? Are you aware of local employers who are interested in partnership with a child care business to offer quality care for Texas employees? Help us spread the word!
Programs must be increasing the availability of home-based or center-based child care in at least one of these categories on or after March 1st, 2022 to be eligible to apply for this post-CCRF funding. Programs that are purchased by a new owner but retain the same capacity, are ineligible.

What Awards are Available?

Child Care providers may be eligible to receive one or two awards.

  • Start Up Award: Eligible providers will be required to complete an application and viable business plan, with help and support from a free business coach if needed. Once approved, the provider will be eligible to receive a Start-Up Award.
  • Initial Operating Award: After the provider applies for and receives their licensing permit from CCR, they will be eligible for an Initial Operating Award.

How Much Funding is Available?

The amount of funding will be based on proposed capacity, type of program, location, and the average cost of child care in your area – and in the case of infant capacity expansion, the number of new infant slots created. Eligible providers will receive funding on a rolling basis, depending on the date they apply and are approved for the funding. Start-Up Awards will be available until February 1, 2023, and Initial Operating Awards until April 1, 2023. The specific criteria for funding calculations is below.

Start-Up Award Amounts Initial Operating Award Amounts
Type of Program Proposed Capacity Amount Child Care Desert and Employer Site-Based Awards
Licensed Center  101 or more  $75,000   New Provider Licensed Capacity x  75th Percentile of the Average Daily Local Market Rate for All Ages x 3 Months (63 days) 
75-100   $60,000  
50-74  $45,000  
25-49  $30,000   Child Care Infant Initial Operating Award
0-24  $15,000   New Licensed Infant Capacity x  75th Percentile of the Average Daily Local Market Rate for Infants x 3 Months (63 days) 
Licensed Home  Up to 12  $8,000  
Registered Home  Up to 6  $4,000  
Infant Capacity 
$2,000 / proposed new infant slot (can be combined with above amounts)

How can I use the awards?

Funds are intended to support the launch of a new child care program or expanding an existing one. Allowable expenses include:

  • Indoor, outdoor, and office equipment and furnishings;
  • Education, classroom, kitchen, and safety materials or supplies;
  • Permitting fees, for example for CCR or as related to inspections; 
  • Staffing costs to support operations while ramping up to full or expanded enrollment; 
  • Outreach costs associated with recruitment of families and staff; and  
  • Minor renovations (construction of new facilities and major renovations are prohibited).

How can I apply?

The Child Care Provider Expansion Initiative will open in July 2022. Applications will be accepted on a rolling basis. Email questions to and check back soon for more information!

Additional Resources

Tax Credit for Employer-Provided Child Care Facilities and Services

Frequently Asked Questions (English FAQ) (Spanish FAQ)