TWC increases 2022 child care relief funding by $1 billion to strengthen workforce

AUSTIN – The Texas Workforce Commission (TWC) this week approved an additional $1 billion in direct support for the Texas child care industry, increasing available funds for the 2022 Child Care Relief Fund (CCRF) to a total of $3.4 billion — with an estimated average award of over $250,000 per provider.

In addition to the $1 billion approved for CCRF, the Commission has also approved an additional $75 million aimed to defray startup costs for new child care providers across the state.

The 2022 CCRF, now at $3.4 billion in available funds, is intended to help child care providers address the impacts of COVID-19. Eligible providers may use these funds in a variety of ways to support their program’s operating costs.

Examples include supporting staff recruitment and retention by enhancing the benefits they provide to their employees such as paid time off and free or low-cost child care for their employees’ children. Other employee benefits could include signing bonuses, retention bonuses, wage stipends, or hazard pay.

The $75 million in additional funding aims to support the expansion of available regulated child care, which has declined following the pandemic and assist potential new child care providers.

This funding may be used by new child care businesses to help support the initial costs of opening a new child care program, including, but not limited to: 

• Indoor equipment and furnishings (cribs, changing tables, bookshelves, chairs, tables, rugs, etc.)
• Office furnishings and equipment (desks, chairs, filing cabinets, computers, software, printers, etc.)
• Outdoor equipment (playgrounds, shade structures, toys, balls, fencing, infant strollers, etc.)
• Kitchen supplies, excluding food (appliances, cookware, serving items, etc.)
• Safety supplies (fire extinguishers, smoke detectors, carbon monoxide detectors, baby gates, outlet covers, etc.)
• Education supplies/classroom materials (curriculum, books, toys, etc.)
• Permitting fees (Child Care Regulation, inspections, etc.)

“TWC remains committed to supporting Texas employers, including those in the child care industry, as they respond to economic and hiring challenges,” said TWC Chairman Bryan Daniel. “This latest action by TWC on behalf of the child care industry reflects the importance of child care providers not just as small businesses, but as critical support to the workforce needs of our state.”

The $3.4 billion 2022 Child Care Relief Fund is a new opportunity that will help strengthen a vital industry to the state’s workforce by offering direct support for existing child care programs.

Beginning this month, over 13,000 eligible child care providers across the state, including licensed and regulated child care centers and homes, will have the opportunity to apply for this one-time stimulus funding.

“Texas’ workforce depends on reliable, quality child care, and the industry itself has faced staffing challenges in light of the pandemic,” said TWC Commissioner Representing Labor Julian Alvarez. “Not only do these funds help strengthen the quality of child care available to Texans, but they also offer needed support for wages, benefits, and more to those working in child care centers and homes.”

Child Care Relief Funding award amounts are based upon provider size, type, and the average cost of child care in their area.

Through the first round of Child Care Relief Funding in 2021, approximately $581 million was awarded to more than 9,500 child care providers who received, on average, over $60,000 each in support.

With the new 2022 CCRF opportunity, this year’s eligible providers have access to $3.4 billion and with an estimated average award of over $250,000.

“These funds will go a long way toward supporting our irreplaceable child care providers,” said TWC Commissioner Representing Employers Aaron Demerson. “Supporting our child care businesses across the state is a win-win situation for our Texas employers, their staff, and families that are seeking child care in order to remain and rejoin the workforce.”

Eligible child care providers will receive an invitation to apply for funding beginning later this month. For more information and to check eligibility, visit https://www.childcare.texas.gov/ or email CCReliefFunds@Trelliscompany.org.