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Texas Advances $100 Million Child Care Scholarship Funding Boost

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Support for Working Texas Families

Working Texas families could soon receive more support for their children under a legislative proposal to boost child care funding by using federal funds.

A final version of the 2026-2027 state budget released by the Texas Legislature on Tuesday includes a $100 million increase in funding for child care scholarships.

Lawmakers developed the proposal by redirecting unused federal money from the Temporary Assistance for Needy Families program, or TANF, to support the subsidies provided by the Texas Workforce Commission.

Initially, the $100 million was included in the supplemental budget bill for the current biennium rather than the bill for the upcoming biennium. It was also initially funded by General Revenue instead of unused federal funds.

Background and Context

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Related: Child care access support bills pass Texas Legislature, move to governor

The budget bill will now go before the Texas House and Senate for a final vote before it is sent to the governor for approval.

“This investment will ensure more Texans are able to clock in to work each day and more kids have access to safe, nurturing child care during the critical early years of brain development,” David Feigen, director of early learning policy for Texans Care for Children, said in a statement Tuesday.

The Texas State Capitol is pictured at dusk on Wednesday, June 8, 2022, in Austin.

(Smiley N. Pool / Staff Photographer)

Time Running Out for Legislature

Time is running out for the Legislature to pass laws aimed at improving child care access and quality before the session ends June 2.

Advocates for early care and education have pushed the matter as a workforce issue because many working families need child care, and more than half a million Texas children lack those services, according to the advocacy nonprofit Children at Risk.

Child Care Challenges in Texas

About 95,000 families are on the waitlist for child care scholarships, according to state data. That includes over 33,000 children in North Texas, according to the Texas Association for the Education of Young Children, a nonprofit working to increase access to high-quality early childhood education.

Texas also lost nearly 75,000 child care seats last year, according to Children at Risk. This contributed to a 15% increase in child care deserts — areas defined by ZIP codes with at least 30 children under age 6 where the demand for child care among working parents is at least three times greater than the licensed child care capacity.

Reaction from Lawmakers

House Appropriations Committee Chairman and State Rep. Armando Walle, D-Houston, said in a statement that he’s proud that lawmakers secured the additional scholarship funding through diligent negotiations and collaboration.

“Access to quality child care is essential for both economic stability and our children’s future,” he said. “By exploring every budgetary option and building consensus, we achieved a result that will make a real difference in the lives of Texas families.”

Related News
  • Child care access support bills pass Texas Legislature, move to governor
  • Child care access is key for Texas workers. Here’s what lawmakers are debating

This reporting is part of the Future of North Texas, a community-funded journalism initiative supported by the Commit Partnership, Communities Foundation of Texas, The Dallas Foundation, the Dallas Mavericks, the Dallas Regional Chamber, Deedie Rose, the McCune-Losinger Family Fund, The Meadows Foundation, the Perot Foundation, the United Way of Metropolitan Dallas and the University of Texas at Dallas. The News retains full editorial control of this coverage.

Conclusion

The proposed increase in child care funding is a significant step towards supporting working Texas families. With the budget bill set to go before the Texas House and Senate for a final vote, it is essential that lawmakers prioritize the needs of Texas families and ensure that they have access to quality child care. This investment will not only benefit the families but also contribute to the economic stability and future of Texas.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about the proposed increase in child care funding:

Q: How much funding is being proposed for child care scholarships?

A: The proposed funding increase is $100 million.

Q: Where will the funding come from?

A: The funding will come from unused federal money from the Temporary Assistance for Needy Families program (TANF).

Q: How many families are on the waitlist for child care scholarships?

A: According to state data, about 95,000 families are on the waitlist for child care scholarships.

Q: What is the impact of child care deserts on Texas families?

A: Child care deserts contribute to a lack of access to quality child care, making it difficult for working families to balance their work and family responsibilities.

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