The Texas Workforce Commission announced it has approved one-time funding of $2.45 billion to support the state’s child-care industry.

The federal monies are intended to help child-care providers overcome the impact of COVID-19.

“Many working parents must have access to quality child care to effectively join the Texas workforce,” said TWC Chairman Bryan Daniel. “These one-time, federal ARPA funds create an opportunity to provide some financial stability for all Texas child-care providers, not just those participating in the state’s subsidized child care program.”

The new funds will be merged with $775 million that was previously approved in direct support for child-care programs.

TWC officials say they also have invested federal child-care stimulus funds to provide child care to the children of parents in service industries, and this week set a goal for that program to assist 56,940 children of service industry workers.

This is in addition to the more than 116,600 children served daily in TWC’s existing Child Care Services program.

“Recovery for the child care system in Texas means not only helping facility operators, but also the hard-working parents who rely on these programs,” said TWC Commissioner Representing Labor Julian Alvarez. “Child care ‘scholarships’ are important to help bridge the gap and empower hard working families to take advantage of these resources to advance their careers. Helping those workers get their children into child care and themselves back in the workforce benefits all.”

Among the allowable uses of the $2.45 billion one-time funds for child-care operators is personnel costs, which could include signing bonuses, retention bonuses, wage stipends or hazard pay.

Child care providers, like many businesses, are reporting that they face challenges in recruiting and retaining qualified staff, and the funds are expected to assist them in addressing these issues.

“Businesses across Texas need workers, and workers need child care to rejoin the workforce,” said TWC Commissioner Representing Employers Aaron Demerson.

To apply for the funding programs, go online to the TWC website at https://twc.texas.gov/programs/childcare .

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