Last week, the Texas Workforce Commission (TWC) approved $627.5 million in fundingPDF to support the addition and expansion of child care providers statewide, as well as assist TWC’s Child Care Services (CCS) providers as they transition to the new requirement to participate in TWC’s quality-rating improvement system, Texas Rising Star. The new funding supports four major efforts: increasing the child care expansion grants; allocating additional stimulus funding to aid CCS providers; aligning child care payments for families receiving assistance to reflect private pay methods; and enhancing online platforms for career development for early childhood educators.

“At TWC, we don’t want access to affordable, high-quality child care to be a limiting factor for entering the workforce,” said TWC Chairman Bryan Daniel. “That’s a big reason why we’ve invested the federal funds we’ve received for childcare programs into a number of efforts designed to improve and increase capacity. These resources will ensure the supply and quality of child care services are there to keep Texas working.”

In May, the Commission approved $75 million to increase the availability of child care for working parents. The response since was so great, the Commission has now approved an additional $75 million in start-up grants. 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.

“TWC has set a goal to serve nearly 140,000 kids a day with 12-month scholarships so their parents can work or receive education and training,” said TWC Commissioner Representing Labor Julian Alvarez. “We want to ensure those kids — and all Texas children — get access to the best early learning opportunities.”

Effective October 3, 2022, new rules prescribed by House Bill 2607 (87th Texas Legislative Session) go into effect, requiring all child care providers in TWC’s CCS program to participate in the Texas Rising Star program. Texas Rising Star is a quality rating and improvement system administered by TWC. If a provider does not meet the qualifications for certification within 24 months, they will no longer be eligible to serve CCS families.

TWC is allocating $500 million for an additional one-time Child Care Relief Fund (CCRF) payment for current CCS providers receiving the 2022 CCRF. The funding will support approximately 6,230 Texas child care providers. CCS providers may use these funds to help transition to Texas Rising Star, improving the quality of care and ensuring a supply of quality child care for families receiving assistance. Additionally, due to updated “child care desert” data, more than 900 additional providers will be eligible for increased funding under the 2022 CCRF.

“As small businesses, child care providers are crucial to our state’s economy and allow Texans to work and support the needs of their families,” said TWC Commissioner Representing Employers Aaron Demerson. “The funds will help child care providers grow and flourish as they strive to both improve the quality of child care and attain Texas Rising Star certification.”

TWC approved $50 million in one-time stimulus funding to modify child care payment cycles to align with private-payment methods of paying in advance of services. The payments will be moved to the two-week prospective payment beginning in 2024.

Finally, TWC will dedicate $2.5 million in platform enhancements to the Texas Early Childhood Professional Development System, a career development tool for early childhood professionals. The upgrades will also allow TWC to increase the resources available to early childhood educators across the state.

Go to the Child Care Provider Expansion Initiative website to learn more about the child care start-up grants. For more information on TWC’s Texas Rising Star program or to apply, visit the Texas Rising Star website. TWC and its local Workforce Solutions partners serve parents and child care providers. For more on resources available, visit the TWC Child Care website.

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Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers, and communities prosper economically. For details on TWC and its services in coordination with its local workforce development boards network, call 512-463-8942 or visit https://twc.texas.gov/. Subscribe to email updates to receive notifications about TWC programs and services.