Ensuring children have a safe and nurturing environment to learn and grow is a top priority for families across the Lone Star State. However, the financial responsibility that comes with starting or maintaining a childcare business can be daunting. To ease this burden, numerous grants and financial assistance programs are available, designed specifically to support childcare providers in delivering the highest quality care in Texas. 

In this guide, we'll cover the various grants tailored for Texas childcare programs and detail the process to apply for them.

What is a grant?

Before we dig into the specifics of daycare grants in Texas, it's essential to understand what a grant is. A grant is a financial award given by an organization, government entity, or foundation to an individual or a group to carry out a specific project or purpose. Unlike loans, grants usually do not have to be repaid, making them incredibly valuable for entrepreneurs and small business owners.

Grants often come with specific eligibility requirements, such as location, age range, or business type. Additionally, grant funds may be designated for a particular purpose, such as equipment purchases or training programs.

The U.S. government’s second and final funding package for fiscal year 2024 includes a $1 billion increase for programs focused on child care and early childhood education¹. This new funding includes an additional $275 million for the Head Start program and $725 million for the Child Care and Development Block Grant which funds state efforts to provide child care to families and improve the quality of care.

Childcare grants in Texas

Texas offers a variety of grants and financial assistance programs to help support childcare providers in the state.

Grants and resources from government agencies

The Texas Workforce Commission (TWC) is the primary state agency in Texas that oversees the distribution of the federal Child Care and Development Fund (CCDF). This funding can be in the form of certificates, grants, or contracts to provide childcare services to low-income families or improve the quality of care provided.

Texas Workforce Commission 

The Texas Workforce Commission’s (TWC) Child Care Services (CCS) program provides assistance to low-income families to help cover the costs of childcare services. Providers can apply to become a CCS provider, which allows them to receive payments from the state for providing care to eligible children. 

As mentioned above, TWC is the lead agency for the CCDF in Texas. In turn, TWC allocates most of these dollars to 28 Local Workforce Development Boards to fund initiatives to improve the quality of child care across the state. Find your local Workforce Development Board here.

Texas Rising Star

The Texas Rising Star program is a state-funded program that focuses on promoting high-quality care for children in licensed childcare facilities. Providers who meet specific quality standards, such as teacher qualifications and curriculum requirements, can receive financial incentives through this program.

The program offers three levels of quality certification (Two-Star, Three-Star, and Four-Star) to encourage childcare programs to meet higher quality standards. The different levels are tied to enhanced reimbursement rates for children receiving childcare scholarships. 

Child Care and Public Prekindergarten Partnerships

A prekindergarten partnership is a collaboration between public school pre-k and childcare programs to provide education to three- and four-year-old children. Only programs that have a Three- or Four-Star certification from Texas Rising Star are eligible for these partnerships. 

For childcare programs, a pre-k partnership can lead to higher enrollment and greater financial stability by creating new, sustainable streams of funding. In addition, the Texas Workforce Commission will provide eligible childcare programs awards of up to $25,000 to assist with start-up costs for new pre-k partnership classrooms.

Texas Education Agency

The Texas Education Agency (TEA) grant opportunity portal is a central resource for all state and federal grants administered by TEA. This is a helpful resource for providers researching funding opportunities as it lists specific program guidelines, application types, and due dates.

Source

Professional development support

The TWC’s Child Care Services and Workforce Solutions Offices provides many services for child care and early learning programs. Some examples include:

Texas Workforce Commission (TWC) Skills for Small Business 

Childcare programs with fewer than 100 employees can apply for the TWC Skills for Small Business program. This program aims to support small businesses by offering training to new and current employees at local community or technical colleges.

The program reimburses up to $900 per existing employee and up to $1,800 per new employee for a 12-month period. Training opportunities like entry level certificates in infant and toddler or preschool, child development associate programs, or annual training required by childcare licensing can be eligible for reimbursement. Managers and business owners may be eligible to participate as well.

T.E.A.C.H. Early Childhood Texas Scholarship Program

The T.E.A.C.H. (Teacher Education and Compensation Helps) Early Childhood Texas Scholarship Program awards educational scholarships to early childhood educators working in licensed childcare settings across Texas. This financial assistance helps educators pay for courses towards their credentials and degrees. By backing higher education, the program aims to build a well-qualified, fairly compensated, and stable workforce for Texas children and families.

Texas Infant-Toddler Specialist Network

This statewide network is funded by the TWC to improve the quality of infant and toddler care. The network includes specialists such as trainers, coaches, and mentors who deliver high-quality training and coaching services to teachers working with infants and toddlers. The free resources include professional learning communities, webinars, online courses, and an annual in-person conference.

Grants from private foundations

In addition to state-funded programs, Texas is home to various private foundations that offer grants and financial support to enhance childcare services. These private grants can be a vital resource for providers looking to improve their facilities, invest in staff development, or implement innovative programs for children. Here are some noteworthy private funding opportunities:

The Meadows Foundation

The Meadows Foundation is a Dallas-based private family foundation focused on improving the quality and availability of childcare in Texas. It offers grants to childcare centers aiming to enhance educational programs, facility quality, and staff training.

The Powell Foundation

With a keen interest in early childhood education, the Powell Foundation awards grants to childcare providers in Houston, Austin, and Dallas for initiatives that seek to improve child development outcomes.

The Sid Richardson Foundation

Grants from the Sid Richardson Foundation provide funding to nonprofit organizations that serve the people of Texas. Their focus is primarily on educational, health, human service, and cultural organizations.

The PNC Foundation

Through its Grow Up Great initiative, the PNC Foundation supports early childhood education efforts, offering grants to providers for curriculum development, teacher training, and classroom resources in Texas and beyond.

Federal grants and funding opportunities

The federal government offers a variety of grants and funding opportunities to support childcare providers across the United States, including Texas. These grants are designed to improve access to quality childcare, support the professional development of childcare workers, and enhance the learning environments for children under their care. Some key federal funding sources include:

U.S. Department of Education

The U.S. Department of Education (ED) offers discretionary grants that are awarded using a competitive process, as well as student loans or grants to attend college, and formula grants determined by Congress. Here are some helpful resources to explore:

• ED grants homepage: The ED grants homepage allows you to browse funding opportunities, links to grant applications, and your eligibility status.
• Grants.gov: The Grants.gov website is the central location that provides information on grants across the federal government. You can search for and apply to different funding opportunities, determine your eligibility, and access grant writing tips. 
• Head Start and Early Head Start Programs: Aimed at promoting school readiness for children under five from low-income families, these programs provide grants directly to public and private non-profit and for-profit agencies to provide comprehensive child development services. The Office of Head Start (OHS) posts notices of funding opportunities (NOFOs) that seek applications for grand funds. 

U.S. Department of Agriculture Rural Development

The U.S. Department of Agriculture (USDA) manages various financial assistance programs for rural applications. One example is the Community Facilities Direct Loan and Grant Program that provides funds to be used to purchase, construct and/or improve essential community facilities like childcare centers, purchase equipment, and pay related project expenses in rural areas with no more than 20,000 residents.

Applying for grants

Applying for childcare grants in Texas can be a competitive process, as funding is often limited. To increase your chances of receiving a grant, it’s essential to carefully review and follow all application guidelines and requirements. Here are some general steps to take when applying for childcare grants:

• Meet all licensing requirements: Ensure that your program meets all of the licensing requirements in Texas. Maintaining licensing compliance shows a commitment to high-quality standards and is often also required for you to be eligible for specific grants and funding opportunities.
• Do your research and determine your eligibility: Research available grants and determine which ones align with your needs and goals. Before applying, check to see that you meet all the necessary criteria. Most (but not all) government grants are aimed at 501(c)(3) nonprofit organizations, so be sure to read the eligibility requirements carefully.
• Gather your documentation: Most grant applications will ask for specific documentation, such as financial statements, demographic information, licenses, and certifications. Be sure to have these prepared in advance. With brightwheel you can quickly and easily access custom reporting to meet your specific needs.
• Write a compelling grant proposal: Read successful grant applications to learn how to structure your approach. Include an executive summary of your project and clearly define the need or problem your childcare services address. Provide a detailed description of your program and list your objectives and expected outcomes. Follow all grant application instructions, have someone else review your proposal before submitting, and submit your application on time. 

Additional tips for success

Here are some additional tips to keep in mind when applying for grants for your childcare center:

• Stay informed: Connect and engage with local and state organizations focused on early childhood education. If possible, join their email lists or follow their social media pages, as these organizations will often share grant and funding information as it becomes available. Also, regularly check the websites of federal agencies to stay informed on available grants or programs. 
• Create a budget: A comprehensive childcare center budget will highlight the financial needs and priorities of your program and give funders a clear understanding of how a grant will be utilized. With a clear picture of your program’s finances, you can also maximize the impact of any funding that is received.
• Plan a fundraiser: Hosting a fundraising event can raise necessary funds for your program. Have a bake sale, organize a silent auction, or host a trivia night. 
• Hire a grant writer: If your budget allows, consider hiring a grant writer. A grant writer can craft a compelling narrative about your program and navigate the complexities of the grant application process for you.

Final thoughts

Childcare grants in Texas offer an excellent opportunity for childcare providers to receive financial assistance and support in providing high-quality care for children. With thorough research, preparation, and attention to detail, childcare programs can secure these grants and continue to play a vital role in shaping a brighter future for our children.

1. “Former Preschool Teacher Patty Murray Delivers $1 Billion More to Help Families Find and Afford Child Care & Pre-K”, United States Senate Committee on Appropriations, 03/21/2024.

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