Kentucky Employee Child Care Assistance Partnership

2 Apr

Overview

The Kentucky Employee Child Care Assistance Partnership (ECCAP) helps middle-income families access high-quality childcare by sharing costs among employers, employees, and the state. Kentucky's General Assembly launched the program as a pilot in 2023 and established it as a permanent program in 2024.

Part of a broader state effort to expand access to high-quality childcare, ECCAP targets moderate-income working families, complementing the Kentucky Child Care Assistance Program, which serves lower-income families. Both programs are administered through a single online portal, making it easier for families to find the right support for their needs.

Why It Matters

Many Kentucky families earn too much to qualify for traditional childcare subsidies yet still struggle to afford high-quality care for their young children.

ECCAP offers a sustainable solution by distributing childcare costs among three stakeholders: employers, employees, and the state. This approach helps employers attract and retain talent while enabling more parents to enter the workforce.

The program also fills a critical gap in childcare support by helping families across income levels, providing higher state match percentages for lower-income families who typically struggle most with childcare costs.

Quick Facts

Core Model: Shared cost partnership between employers, employees, and the state
Notable Feature: Moderate-income families pay on a sliding scale based on household income
Launch Date: July 2023
Eligibility: Kentucky employees who are not eligible for the Child Care Assistance Program, who work for participating employers, and who use licensed childcare providers enrolled in Kentucky's All STARS Program
Current Funding: Initially funded with $15 million allocated for fiscal year 2023-2024, with 25% set aside for small-business employers; $2 million per year allocated for 2024-2026
Participation Rates:
- Families: 98 families benefiting as of early 2024
- Children: 135 children receiving care
- Employers: 185 applications submitted to date
Program Coverage: Statewide availability across Kentucky

Background

In 2022, the Kentucky General Assembly established ECCAP to address the high cost of childcare, which prevents many Kentucky parents from participating in the workforce. Launched as a pilot program with a $15 million allocation in 2023, ECCAP transitioned from pilot status to permanent status in 2024.

ECCAP was created shortly after several major enhancements to the Kentucky Child Care Assistance Program (CCAP) which were implemented throughout 2021 and 2022. The two childcare programs are designed to work together: CCAP helps low-income families while ECCAP serves families who earn too much to qualify for CCAP.

How it Works

The program operates through a three-way cost-sharing model:

Employers choose how much to contribute, making payments directly to the employee's childcare provider
State matches the employer contribution based on a sliding scale relative to employee household income
Employees pay for the remaining childcare costs

The Kentucky Cabinet for Health and Family Services (CHFS) administers the program, managing applications and making payments to childcare providers. Both ECCAP and CCAP applications are processed through Kentucky's “Kynect” system — a unified online portal for both programs.

Key Features

Public-Private Partnership: Combines employer and state resources for sustainable childcare funding
Flexibility for Employers: Employers determine how much they contribute, giving them flexibility based on their workforce needs and budget constraints
Small Business Support: 25% of funding is reserved specifically for small business employers, ensuring the program reaches diverse workplaces
Sliding Family Payment Scale: State match ranges from 50% to 100% based on household income, providing more support for families with lower incomes

Policy Levers

Funding: Initial $15 million allocation with 25% set aside for small businesses
Eligibility Parameters: Program targets working families who earn too much to qualify for CCAP assistance
Three-Way Cost Sharing: Model divides costs between employers, families, and the state
Income-Based Match: State contribution varies from 50-100% based on family income, maximizing support for those who need it most
Pilot-to-Permanent Transition: Transitioned from pilot to permanent program in 2024 after demonstrating effectiveness as a pilot program

Results

ECCAP has shown promising early results:

Family Reach: 98 Kentucky families and 135 children benefiting from the program as of early 2024
Employer Engagement: 185 applications submitted, with about $86,000 disbursed in state matching funds
Complementary Impact: Together with CCAP, ECCAP helps form a comprehensive approach to childcare assistance that serves families across varying income levels