4.1 Access to Full Range of Provider Options

Lead Agencies must provide parents a choice of providers and offer assistance with child care services through a child care certificate (or voucher) or with a child care provider that has a grant or contract for the provision of child care services. Lead Agencies are reminded that policies and procedures should not restrict parental access to any type or category of care or provider (e.g., center care, home care, in-home care, for-profit provider, non-profit provider, or faith-based provider, etc.). 4.1.1 Parent choice a. Identify any barriers to provider participation, including barriers related to payment rates and practices, (including for family child care and in-home providers), based on provider feedback, public comment, and reports to the Lead Agency: To gain insight into the dynamics of which facilities accept children with subsidy scholarships and how it affects their pricing for such children, the Market Rate Survey (MRS) includes two questions. The first question, addressed to those who serve subsidized children, asks whether they charge more to families of subsidized children if their established rates are greater than the provider payment rate they would receive (which includes the subsidy plus co- payment). As shown in the 2025 MRS, 3.8 percent of centers and 2.1 percent of homes indicated that they charged such families an additional amount. The proportion of homes charging families additional amounts has dropped significantly in the past year. The 2025 MRS data was collected between September 2024 and May 2025 and do not reflect changes in local Board policies to no longer allow providers to charge the difference to families. When the 2025-2027 State Plan was submitted, two boards allowed the practice of providers charging families the difference between their rates and the board’s provider payment rate. The next question addressed to providers who do not report serving subsidized children, asked them whether they had a reason for not accepting subsidized children. The most common reason reported by both homes and centers is that families have not requested or needed subsidized care. Other reasons or no reason provided were also common responses, combined representing about 54 percent of centers and 27 percent of homes who did not accept subsidized children. Another common reason among homes is that they do accept subsidized children but do not currently provide care for any subsidized children at the time of their interview. Also commonly reported by both center and home respondents at about 15 percent is the paperwork or reporting requirements. Additionally, 11 percent of homes and less that 9 percent of centers not serving subsidized children indicated they did not do so because provider payment rates were too low, more than have reported this constraint in recent years. Over 17 percent of homes felt they needed more information or training in order to accept subsidized children, a substantial increase in those reporting this need. Feedback was sought from providers who do not report serving subsidized children to find out the reasons for not accepting subsidized children. Respondents were able to select more than one response. Below is a summary of the responses from centers and homes: No centers and 11.9% of homes indicated they are not currently caring for subsidized children, but do accept them; 4.7% of centers and 1.1% of homes indicated they are in the process of setting up to accept subsidized children; 23.5% of centers and 28.6% of homes indicated there have been no requests or need from families for subsidized care; 15.6% of centers and 15.2% of homes indicated paperwork or reporting requirements as a barrier; 8.7% of centers and 11.4% of homes indicated that provider payment rates are too low; 3% of centers and 3.2% of homes indicated issues related to not receiving or receiving late parent co-payments; 2.6% of centers and 3.5% of homes indicated challenges with not receiving or receiving late CCS payments; 10.1% of centers and 2.4% of homes indicated that their facility is full or fills too quickly; 3.7% of centers and 1.9% of homes indicated that their facility is too new or too small; 2.5% of centers and 8% of homes indicated they are not a Texas Rising Star provider; 28.7% of centers and 9.7% of homes indicated there is another reason they do not accept CCS children; and 4.8% of centers and 17% of homes did not provide a reason. In 2021, the Governor Abbott signed HB 2607, which requires all subsidy providers to participate in Texas Rising Star. Child care providers may enter the Texas Rising Star program at the Entry Level Designation and receive the base level provider payments for up to 24 months. Entry Level ensures that programs receiving subsidies in Texas meet a base level of quality as determined by their most recent 12 months of licensing history while also ensuring they are on a path to increase their level of quality over time. In accordance with state law, if a participating program does not meet the Entry Level requirements, they are no longer eligible to receive child care subsidies regardless of whether they exist in a desert or serve an underserved population. b. Does the Lead Agency offer child care assistance through vouchers or certificates? [x] Yes. [ ] No. c. Does the Lead Agency offer child care assistance through grants or contracts? [x] Yes. [ ] No. d. Describe how the parent is informed that the child care certificate allows the option to choose from a variety of child care categories, such as private, not-for-profit, faith-based providers; centers; family child care homes; or in-home providers: TWC and Boards use consumer education materials (flyers, forms, and brochures), verbal communication at the time of application, and Board websites. There are multiple points of communication throughout the eligibility and renewal process. CCS rule §809.15 requires Boards to inform parents of child care options by providing a description of the full range of eligible child care providers, including: LCCCs; LCCHs; RCCHs; and The option to choose an eligible relative. TWC rules require Boards to provide parents with: A description of programs available in the LWDA relating to Texas Rising Star provider certification, providers participating in the Texas School Ready project, and other quality rating systems, including national accreditations; The CCR website and telephone number, so parents can be aware of health and safety requirements for regulated child care providers; and Information about 211 Texas. TWC distributes a brochure to Boards with information for parents to consider when choosing child care, including quality considerations. Texas Government Code §2308.3171 requires that Boards post a list of child care providers that have met a quality indicator in a prominent place on the Board's website. The statute also requires any child care provider that cares for subsidized children to post its quality indicator at the entrance of the provider's facility. TX3C includes TWC’s Child Care Availability Portal. The portal provides parents with detailed information about child care providers with available slots that meet their needs including location, subsidy status, Texas Rising Star quality level, available child care slots, a link directly to the provider’s licensing and inspection history, and value-added information the provider may optionally include such as curriculum used, and special activities offered. With the launch of the full TX3C case management system and parent portal, TX3C also allows parents to apply for CCDF subsidies directly from the TX3C website which will help parents to connect the information about providers that accept subsidy to the process of applying for child care assistance. e. Describe what information is included on the child care certificate: Upon eligibility determination, parents receive a child care certificate (Notice of Action). The parent may have already selected a provider but is not required to do so before receiving the certificate. A written eligibility Notice of Action includes: A congratulatory opening statement; The children authorized for care; The dates of authorization (minimum of 12 months); A child care provider selected by the parent or notice that parent needs to select a child care provider; Specific eligibility reasons or elements; The expected parent share of cost amount; and The requirement to report changes.