Texas Workforce Commission's Employer Child Care Solutions

25 Mar

Overview

The Texas Workforce Commission's Employer Child Care Solutions Initiative provides technical assistance to businesses considering employer-supported childcare options. The program provides expert guidance (rather than direct childcare funding), empowering employers to create sustainable childcare solutions. It helps employers assess workforce childcare needs, develop business plans, and implement childcare solutions that work for both employees and businesses across Texas.

Why It Matters

Families and employers alike face challenges when employees cannot access affordable, high-quality childcare because parents with young children often cannot work without reliable childcare.

The Employer Child Care Solutions Initiative addresses this challenge by giving businesses expert technical assistance to provide childcare to their employees. The program engages employers in creating new childcare capacity, particularly in areas that lack sufficient childcare.

This creates more childcare options for workers with young children while helping businesses attract and keep the workforce they need.

Quick Facts

Core Model: Technical assistance for employer-supported childcare solutions, including an employer needs assessment.
Notable Feature: Expert guidance (rather than direct funding) for businesses to develop customized on-site or near-site childcare programs
Launch Date: Fiscal Year 2025
Eligibility & Program Coverage: Any employer with employees working in Texas, regardless of whether the employer's main operations are located within the state
Current Funding: Federal childcare funds; complemented by a $25 million Child Care Expansion Initiative for FY 2025 specifically for new licensed childcare centers providing on-site or near-site childcare through employer partnerships

Background

The Texas Workforce Commission (TWC) approved the development of the Employer Child Care Solutions Initiative in March 2023 as part of a larger effort to strengthen childcare infrastructure throughout the state. Created to address the critical link between childcare availability and workforce participation, the initiative dedicated up to $12 million to provide technical assistance to employers exploring the possibility of providing childcare programs. This technical assistance is complemented by a $25 million Child Care Expansion Initiative for FY 2025, which specifically supports new licensed childcare centers that provide childcare on or near parents' workplace.

How it Works

The initiative operates through a step-by-step technical assistance process, with services available on a first-come, first-served basis:

TWC finds qualified technical assistance providers
A list of qualified providers is published on TWC’s webpage
Employers select the technical assistance provider they prefer and work directly with that provider
Providers deliver customized assessments and planning help to the employers who have selected them

The technical assistance includes five key services: employee needs assessment, feasibility studies, options analysis, site selection, and business planning. This approach ensures employers develop childcare solutions that meet their specific workforce needs.

Key Features

Business-Centered Approach: Childcare solutions that work for both employers and employees
Comprehensive Technical Support: Expert guidance (rather than direct funding) for employers through the entire process of developing employer-supported childcare solutions, with a focus on creating employer-supported site-based childcare
Data-Driven Decision Making: Employee needs assessments help ensure childcare solutions address actual workforce needs and community conditions
Statewide Accessibility: Available to employers across Texas regardless of location or industry

Policy Levers

Funding Allocation: The initiative is funded through federal childcare funds; complemented by the $25 million Child Care Expansion Initiative for FY 2025
Program Structure: The initiative provides expert guidance (rather than direct funding), helping employers develop sustainable childcare solutions
Integration Strategy: The initiative works with recent policy changes including the implementation of the Texas Child Care Connection (TX3C) system in January 2025, which introduced a new statewide application, changes to provider payments, and enhanced attendance monitoring

Results

The Employer Child Care Solutions initiative is just launching in FY 2025, so results are not yet available. The focus for FY 2025 is finding specialized technical assistance providers and helping employers create on-site or near-site childcare programs for their workers.