Initiative to Help Expand or Launch Child Care Businesses

TEXAS – Texas Workforce Commission is launching a new initiative to build the supply of high-quality child care across Texas. Funding will soon be available to help expand existing child care business, or launch a new one.

In February, the Commission approved $75 million to help improve the availability of child care for families in the state. 

Who is Eligible to Apply?

You’re eligible to apply for funding if you want to serve:

  • Children in a pre-defined child care desert;
  • Employees’ children in partnership with an employer or consortium of employers to provide care for their employees; and/or
  • Infants (0-17 months).

Funding can be used to offset operations costs incurred during startup and/or the first few months of opening or expanding. Allowable expenses include: office equipment and furnishings, education, classroom and safety materials, permitting fees, and staffing costs.

TWC has an upcoming informational session where anyone interested in this initiative can learn more (click on the link below to open the zoom):

Thursday, May 26, 2022 at 1:30 p.m. CST 

Zoom Link:

Additionally, TWC launched a new webpage where interested providers can learn more:

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.

    Programs must be increasing the availability of home-based or center-based child care in at least one of these categories to be eligible. Programs that are purchased by a new owner but retain the same capacity, and those that had an active permit with Texas Health and Human Services Child Care Regulation (CCR) prior to March 1, 2022, 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.

If a provider has already begun the process of applying for a permit (or modified permit) on or after March 1, 2022 when applying for this initiative, they will not be eligible for a Start-Up Award but could be eligible for an Initial Operating Award; providers in this situation will still be required to develop and submit a viable business plan.

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

Type of Program

Proposed Capacity


Licensed Center 

101 or more 










Licensed Home 

Up to 12 


Registered Home 

Up to 6 


Infant Capacity 

$2,000 / proposed new infant slot (can be combined with
above amounts)

How Can I Apply?

The Child Care Provider Expansion Initiative will open in June 2022. Applications will be accepted through January 2023 and will be processed on a rolling basis. Email questions to

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