Additional $106.4M Allocated For Texas Child Care Programs

AUSTIN – The Texas Workforce Commission (TWC) approved $106.4 million to assist TWC’s 28 Local Workforce Boards and childcare providers to address higher childcare costs resulting from COVID-19.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted, which included approximately $371 million in Child Care Development Block Grant (CCDBG) funds to help Texas to respond to the impacts of COVID-19 on childcare.   

Previously, TWC had authorized the use of $100 million of CCDBG CARES Act funds to provide a temporary three-month benefit for the children of Essential Workers.

An additional $100 million was also previously authorized for a 25% Enhanced Reimbursement Rate to assist subsidy providers with higher operating costs as a result of COVID.

On Thursday, TWC approved an additional $53.8 million in CCDBG CARES Act funds to support the 25% Enhanced Reimbursement Rate through December 2020.

TWC also authorized the use of $19.3 million in CCDBG CARES Act funds in fiscal year 2020 to allow Local Workforce Development Boards to address the higher costs of childcare that the state has experienced since March.

When schools closed in March TWC began paying for full-time childcare for students who were previously receiving part-time, afterschool childcare.

According to TWC, childcare industry leaders expect the higher costs to continue, therefore, they approved an additional $33.3 million in CCDBG CARES funds for fiscal year 2021 to help more families work and support the Texas economy.

For more information on our child care program visit the TWC website at www.twc.texas.gov/students/child-care-program.