4.5 Supply Building

Building a supply of high-quality child care that meets the needs and preferences of parents participating in CCDF is necessary to meet CCDF’s core purposes. Lead Agencies must support parent choice by providing some portion of direct services via grants or contracts, including at a minimum for children in underserved geographic areas, infants and toddlers, and children with disabilities. 4.5.1 Child care services available through grants or contracts Does the Lead Agency provide direct child care services through grants or contracts for child care slots? [ ] Yes, statewide. Describe how the Lead Agency ensures that parents who enroll with a provider who has a grant or contract have choices when selecting a provider: [x] Yes, in some jurisdictions, but not statewide. Describe how many jurisdictions use grants or contracts for child care slots and how the Lead Agency ensures that parents who enroll with a provider who has a grant or contract have choices when selecting a provider: All 28 Board areas may implement contracted slots, based upon legislative changes enacted in 2019. Texas Labor Code §302.0461 allows Boards to contract with Texas Rising Star programs to reserve slots to provide child care services for children participating in the CCS program. [ ] No. If no, describe any Lead Agency plans to provide direct child care services through grants and contracts for child care slots: If no, skip to question 4.5.2. i. If yes, identify the populations of children served through grants or contracts for child care slots (check all that apply). For each population selected, identify the number of slots allocated through grants or contracts for direct service of children receiving CCDF. [x] Children with disabilities. Number of slots allocated through grants or contracts: Boards have the option of contracting with child care providers for slots dedicated to children with disabilities. Currently, no boards are offering contracted slots. TWC was granted an extension of this prior approved waiver to August 1, 2026. [x] Infants and toddlers. Number of slots allocated through grants or contracts: Boards have the option of contracting with child care providers for infant and toddler slots. Contracts in Alamo for 50 infant and toddler slots ended in February 2024. Currently, no Boards are offering contracted slots. TWC was granted an extension of this prior approved waiver to August 1, 2026. [x] Children in underserved geographic areas. Number of slots allocated through grants or contracts: Boards have the option of contracting with child care providers for children in underserved areas, such as child care deserts. Currently, no boards are offering contracted slots. TWC was granted an extension of this prior approved waiver to August 1, 2026. [ ] Children needing non-traditional hour care. Number of slots allocated through grants or contracts: [ ] School-age children. Number of slots allocated through grants or contracts: [ ] Children experiencing homelessness. Number of slots allocated through grants or contracts: [ ] Children in urban areas. Percent of CCDF children served in an average month: [ ] Children in rural areas. Percent of CCDF children served in an average month: [x] Other populations. If checked, describe: To qualify for a contract with Boards for reserved slots in accordance with Texas Labor Code §302.0461, providers must be a Texas Rising Star Three- or Four-Star provider and meet one of the following criteria: Be located in a child care desert or area determined to be underserved; Have a Pre-K partnership; Have an HS/EHS partnership; Increase the number of places reserved for high quality infant/toddler care; or Satisfy a requirement for the Board's strategic plan. ii. If yes, how are rates for slots funded by grants and contracts determined by the Lead Agency? Providers will receive the same payment rates for contracted slots as they would for any other referral. 4.5.2 Care in the child’s home (in-home care) The Lead Agency must allow for in-home care (i.e., care provided in the child’s own home) but may limit its use. Will the Lead Agency limit the use of in-home care in any way? [x] Yes. [ ] No. If yes, what limits will the Lead Agency set on the use of in-home care? Check all that apply. i. [ ] Restricted based on the minimum number of children in the care of the in- home provider to meet the Fair Labor Standards Act (minimum wage) requirements. Describe: ii. [x] Restricted based on the in-home provider meeting a minimum age requirement. Describe: In home providers must be at least 18 years of age. iii. [x] Restricted based on the hours of care (i.e., certain number of hours, non- traditional work hours). Describe: In-home care is allowed if a parent has NTH (evenings, nights, and/or weekends). iv. [x] Restricted to care by relatives. (A relative provider must be at least 18 years of age based on the definition of eligible child care provider.) Describe: In-home providers must be eligible listed home providers. v. [ ] Restricted to care for children with special needs or a medical condition. Describe: vi. [x] Restricted to in-home providers that meet additional health and safety requirements beyond those required by CCDF. Describe: CCS rule §809.91(e)(1) requires in-home providers to list with CCR as a family home, undergo a criminal background check, and undergo a check against the sex offender registry and the central child abuse and neglect registry. vii. [x] Other. Describe: CCS rule §809.91(e)(2) requires Boards to allow relative child care providers to provide in-home child care only for the following: A child with disabilities and his or her siblings; A child under 18 months of age and his or her siblings; and A child of a teen parent when the parent’s work schedule requires evening, overnight, or weekend child care and taking the child outside of the child’s home would be disruptive to the child. CCS rule §809.91(e) states a Board may allow relative in-home child care for circumstances in which the Board’s child care contractor determines and documents that other child care provider arrangements are not available in the community. 4.5.3 Shortages in the supply of child care Lead Agencies must identify shortages in the supply of child care providers that meet parents’ needs and preferences. What child care shortages has the Lead Agency identified in the State or Territory, and what is the plan to address the child care shortages? a. In infant and toddler programs: i. Data sources used to identify shortages: To determine shortages in the supply of high-quality providers, each Board uses information from TWC’s child care case management system, CCR, and CLI to assess local data on the number of high- quality child care centers and parents seeking care. TWC and Boards also use data collected through the Texas Child Care Availability Portal to analyze supply and demand. TWC also collected data from the 2023 Statewide Early Childhood Needs Assessment and 2024 Stakeholder Input Survey. Through the 2024 Stakeholder Survey, TWC received feedback from 548 parents indicating the need for infant and/or toddler care. Of those parents, 126 reside in child care deserts. ii. Method of tracking progress: TWC will update the annual MRS to ask child care providers about their overall waiting lists and infant care waiting list. TWC is exploring enhancements to TX3C to analyze infants that remain on waiting lists due to supply challenges. iii. What is the plan to address the child care shortages using family child care homes TWC supports staffed family child care networks (FCCN). TWC previously awarded grants to two local collaborative efforts to develop staffed FCCNs designed to provide training, specialized services, and TA to address the needs of home-based child care providers, thereby increasing the availability and quality of family child care. Building on the success of those initiatives, TWC launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home-based capacity. The new statewide FCCN also provides start-up grants to support new LCCHs and RCCHs. iv. What is the plan to address the child care shortages using child care centers? As part of a larger supply building effort in 2022, TWC began investing $1 million to support CCR in staffing a new Child Care Navigator team. The CCR Navigators are strategically placed in different parts of the state to help support new child care providers build and sustain their child care business. The Navigators partner with new child care applicants, assisting them through the application process, providing them with available resources in their community or region, and connecting them with their CCR representatives. In recognition of the demand for services and success of the team, TWC and partner agencies plan to increase funding with PDG B-5 Renewal Grant funds to grow the Navigator team in 2024. b. In different regions of the State or Territory: i. Data sources used to identify shortages: To determine shortages in the supply of high-quality providers, each Board uses information from TWC’s child care case management system, CCR, and CLI to assess local data on the number of high- quality child care centers and parents seeking care. Several Boards leverage geographic information systems to map the locations of providers and identify child care deserts. TWC and Boards also use data collected through the Texas Child Care Availability Portal to analyze supply and demand. TWC also collected data from the 2023 Statewide Early Childhood Needs Assessment and 2024 Stakeholder Input Survey. Through the 2024 Stakeholder Survey, TWC received feedback from providers located in at least 175 unique counties (834 ZIP codes), and parents located in at least 103 counties (448 ZIP codes). Of those providers, 306 are in a child care desert. ii. Method of tracking progress: TWC will update the annual MRS to ask child care providers about their overall waiting lists and analyze this based on geographical location. TWC is exploring enhancements to TX3C to analyze children that remain on waiting lists due to supply challenges. iii. What is the plan to address the child care shortages using family child care homes? TWC previously awarded grants to two local collaborative efforts to develop staffed FCCNs designed to provide training, specialized services, and TA to address the needs of home-based caregivers, thereby increasing the availability and quality of family child care. Building on the success of those initiatives, TWC launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home-based capacity. The new statewide FCCN provides start-up grants to support new LCCHs and RCCHs. iv. What is the plan to address the child care shortages using child care centers? TWC launched the Employer Child Care Solutions program in Fall 2025. This project uses public-private partnerships to improve the supply of child care in underserved areas and access to affordable child care for working parents. Employer Child Care Solutions is designed to increase the supply of child care and increase access to affordable high-quality child care in underserved areas by providing technical assistance (TA) to help employers identify how best to support their employees needing child care. TA contractors will provide free assistance, such as employee needs assessments, community child care landscape analyses, and feasibility studies to help employers determine if they could open an on-site or near-site child care center, partner with local child care providers, or provide other child care benefits. TA contractors may also help employers create a strategic plan to implement the option that best fits their needs. TWC provides quality improvement funds to Boards to expand capacity or address particular needs in their workforce area. c. In care for special populations: i. Data sources used to identify shortages: To determine shortages in the supply of high-quality providers, each Board uses information from TWC’s child care case management system, CCR, and CLI to assess local data on the number of high- quality child care centers and parents seeking care. TWC also collected data from the 2023 Statewide Early Childhood Needs Assessment and 2024 Stakeholder Input Survey. TWC has added a data field in the child care case management system to help Boards identify families that need care during NTH and connect them with child care providers that best meet their needs. TWC is also collecting data in the Texas Child Care Availability Portal on families seeking care during NTH. In FY’23, TWC was selected to participate in the ACF-funded Early Care and Education-Receiving Individualized Support for Evaluation Capacity Building (ECE- RISE) project to receive technical assistance from Mathematica over an 18-month period. Through this project, TWC partnered with HHSC CCR to build research capacity in the state and to complete a research project exploring unmet needs for NTH care in the state, particularly in the Gulf Coast workforce area. ii. Method of tracking progress: TWC is exploring enhancements to TX3C to analyze children with disabilities that remain on waiting lists due to supply challenges. TWC will analyze and collect data to further understand the need for NTH care in Texas and develop research-based recommendations aimed at increasing the state’s capacity to meet the NTH care needs of families and employers. iii. What is the plan to address the child care shortages using family child care homes? TWC launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home-based capacity. The new statewide FCCN provides start-up grants to support new LCCHs and RCCHs. Many home-based providers in Texas offer services during evenings and on weekends. iv. What is the plan to address the child care shortages using child care centers? Boards work with partnering agencies and local providers to identify available child care slots for children with disabilities and special needs. Boards may develop differential rate structures for care during NTH (nights and weekends). Boards establish provider payment rates and may target rate increases to specific provider types. In FY’26-27, TWC plans to replicate this work in other areas of the state to support Boards in identifying strategies to assess and address unmet needs for NTH child care. TWC will measure outcomes by monitoring the number of families reporting a need for NTH child care as well as the number of providers and slots available for this type of care. 4.5.4 Strategies to increase the supply of and improve quality of child care Lead Agencies must develop and implement strategies to increase the supply of and improve the quality of child care services. These strategies must address child care in underserved geographic areas; infants and toddlers; children with disabilities, as defined by the Lead Agency; and children who receive care during non-traditional hours. How does the Lead Agency identify any gaps in the supply and quality of child care services and what strategies are used to address those gaps for: a. Underserved geographic areas. Describe: To determine shortages in the supply of high- quality providers, each Board uses information from TWC’s child care case management system, CCR, and CLI to assess local data on the number of high-quality child care centers and parents seeking care. Several Boards leverage geographic information systems to map the locations of providers and identify child care deserts. TWC and Boards also use data collected through the Texas Child Care Availability Portal to analyze supply and demand. TWC also collected data from the 2023 Statewide Early Childhood Needs Assessment and 2024 Stakeholder Input Survey. Texas Labor Code §302.0461 allows Boards to contract with eligible (Three- or Four- Star) Texas Rising Star providers for slots reserved for children participating in child care subsidies in areas: Where the number of children younger than six years of age who have working parents is at least three times greater than the capacity of licensed child care providers in the area (for example a child care desert) or another area determined to be underserved; That have a Pre-K partnership (PKP); That have an HS/EHS partnership; That increase the number of places reserved for high quality infant/toddler care; or That satisfy a requirement for the Board's strategic plan. TWC previously awarded grants to two local collaborative efforts to develop staffed FCCNs designed to provide training, specialized services, and TA to address the needs of home- based providers, thereby increasing the availability and quality of family child care. Building on the success of those initiatives, TWC will launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home- based capacity. The new statewide FCCN provides start-up grants to support new and expanding LCCHs and RCCHs. TWC launched the Employer Care Solutions program in Fall 2025. This project uses contracts and public-private partnerships to improve the supply of child care in underserved areas and access to affordable child care for working parents. Employer Child Care Solutions is an initiative is designed to increase the supply of child care and increase access to affordable high-quality child care in underserved areas by providing TA to help employers identify how best to support their employees needing child care. TA contractors will provide free assistance, such as employee needs assessments, community child care landscape analyses, and feasibility studies to help employers determine if they could open an on-site or near-site child care center, partner with local child care providers, or provide other child care benefits. TA contractors may also help employers create a strategic plan to implement the option that best fits their needs. TWC provides quality improvement funds to Boards to expand capacity or address particular needs in their workforce area. b. Infants and toddlers. Describe: To determine shortages in the supply of high-quality providers, each Board uses information from TWC’s child care case management system, CCR, and CLI to assess local data on the number of high-quality child care centers and parents seeking care. TWC and Boards also use data collected through the Texas Child Care Availability Portal to analyze supply and demand. TWC also collected data from the 2023 Statewide Early Childhood Needs Assessment and 2024 Stakeholder Input Survey. Texas Labor Code §302.0461 allows Boards to contract with eligible (Three- and Four-Star) Texas Rising Star child care providers for slots to be reserved for children participating in CCS to increase the number of places reserved for infants and toddlers. This program focuses on supply building, but also incentivizes quality improvement. TWC will launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home-based capacity. The new statewide FCCN provides start-up grants to support new LCCHs and RCCHs. In March 2020, TWC provided $3 million through a competitive procurement process to establish a statewide infant and toddler specialist network. The University of Texas Health Science Center at Houston was awarded the contract and has been implementing a network that provides teachers and administrators of infant and toddler programs with professional development, technical support, and opportunities to participate in professional learning communities. This continued work will help to enhance the quality of care provided to infants and toddlers across the state, as well as elevate the skills and competencies of the infant and toddler professionals who participate. TWC continues to monitor the effectiveness of this program and use that information to inform any future initiatives. c. Children with disabilities. Describe: TWC funded online training courses developed in partnership with CCR and Texas A&M AgriLife (Agrilife) to assist providers in serving children with disabilities. This initiative focuses on quality improvement. TWC is partnering with HHSC Early Childhood Intervention (ECI) to provide training on developmental learning strategies, early brain development, and inclusion of children with disabilities to child care providers; training and supporting child care providers on screening for developmental delays; and building the capacity of ECI personnel to support social-emotional wellness. ECI-led inclusion of children with disabilities support strategies will support the early childhood workforce by providing outside expertise and coaching for teachers to use in classroom settings. ECI’s training for child care providers on developmental screenings equips early educators to better identify students’ needs, when to refer them for additional supports, and how to have sensitive conversations with parents about service referrals. d. Children who receive care during non-traditional hours. Describe: TWC added a data field in the child care case management system to help Boards identify families that need care during NTH and connect them with child care providers that best meet their needs. TWC is also collecting data in the Texas Child Care Availability Portal on families seeking care during NTH hours. TWC previously awarded grants to two local collaborative efforts to develop staffed FCCNs designed to provide training, specialized services, and TA to address the needs of home- based providers, thereby increasing the availability and quality of family child care. Building on the success of those initiatives, TWC launched a statewide FCCN to build supply and improve quality in underserved areas and provide funding to build new home- based capacity. The new statewide FCCN provides start-up grants to support new and expanding LCCHs and RCCHs. In 2022, TWC was selected to participate in ECE-RISE. By participating in ECE-RISE, TWC received 18 months of tailored support to conduct a research and evaluation project from Mathematica, a research and data analytics consultancy, as part of the OPRE-funded Child Care Research and Evaluation Capacity Building Center. Mathematica supported TWC in conducting a defined, short-term research and evaluation project and in building long- term capacity to conduct research and evaluation that can be used for planning as well as informing policy, program, and operational decisions. TWC’s research project focused on understanding the need for NTH child care in Texas. Through the research project, TWC, in partnership with CCR, has investigated the following research questions: What do families perceive as the barriers to accessing NTH care? Key finding: Cost and availability of care are the most frequently reported barriers to accessing NTH care. What kind of NTH care do families want? Key finding: Child care centers are the most used and preferred care option, while home child care was among the least used and preferred. What do providers perceive as sufficient incentive to provide NTH care? Key finding: Providers most frequently reported financial incentives as a support that would help them offer NTH care. TWC will conduct additional analyses and data collection to further understand the need for NTH care in Texas and develop research-based recommendations aimed at increasing the state’s capacity to meet the NTH care needs of families and employers. e. Other. Specify what population is being focused on to increase supply or improve quality. Describe: Children eligible for Texas public prekindergarten, EHS, or HS. TWC works with Boards, child care providers, and school districts/charter schools to generate interest in PKPs and increase the number of partnerships across the state. PKP may expand access to high-quality early care and learning opportunities for children who are eligible for public Pre-K and provide better hours for working families who need a full workday of care. Texas Labor Code §302.0461 allows Boards to contract for slots with eligible (Three- and Four-Star) Texas Rising Star child care providers that have a Pre-K or EHS/HS partnership. TWC is also supporting supply building through efforts to increase the number of PKP programs, in which local education agencies partner with child care programs to provide Pre-K instruction and wraparound care (the hours before and after Pre-K instruction) to eligible three- and four-year-old children in one setting. TWC gives eligible child care providers a one-time award of $25,000 for each new PKP classroom. Child care providers can use the funding to assist with the costs associated with the new partnership classroom, including teacher compensation, instructional materials, classroom furniture, and equipment. Providers are eligible to apply for the funding award if they are Texas Rising Star Three- or Four-Star certified, have an executed Memorandum of Understanding indicating a partnership with a school district or charter school with dually enrolled children, and have at least one new three- or four-year-old Pre-K partnership classroom. TWC has awarded providers approximately $2 million for the 2023-2024 school year and continues to accept applications for the upcoming school year. This initiative focuses on building supply and improving quality. TWC’s PKP supply building support also includes a partnership with the Texas Education Agency to pilot a Pre-K partnership intermediary model at the Texas A&M University System. Texas A&M assists child care providers, school districts, and charter schools to establish and manage PKPs by providing TA on operational logistics such as finances, staffing, and data reporting. In addition, Texas A&M supports quality improvement efforts for PKPs through communities of practice and professional development opportunities for partnering entities. 4.5.5 Prioritization of investments in areas of concentrated poverty and unemployment Lead Agencies must prioritize investments for increasing access to high-quality child care and development services for children of families in areas that have significant concentrations of poverty and unemployment and do not currently have sufficient numbers of such programs. Describe how the Lead Agency prioritizes increasing access to high-quality child care and development services for children of families in areas that have significant concentrations of poverty and unemployment and that do not have access to high-quality programs. TWC includes the percentage of the population below 100 percent of Federal Poverty Guidelines (FPG) and the percentage of children under 13 years of age in families below 150 percent FPG as factors in determining funding allocations to each workforce area. TWC provides funding to Boards to improve child care quality and increase access to Texas Rising Star certified providers for low- income families. Boards prioritize these quality funds based on the needs of the workforce area, including increasing the number of Texas Rising Star certified providers in areas that have high concentrations of poverty and unemployment. Magnifying these efforts, Texas Government Code §2308.317 requires Boards to prioritize quality child care funding initiatives that benefit child care facilities working toward Texas Rising Star certification or Texas Rising Star certified providers working toward higher certification levels. 5 Health and Safety of Child Care Settings Child care health and safety standards and enforcement practices are essential to protect the health and safety of children while out of their parents’ care. CCDF provides a minimum threshold for child care health and safety policies and practices but leaves authority to Lead Agencies to design standards that appropriately protect children’s safety and promote nurturing environments that support their healthy growth and development. Lead Agencies should set standards for ratios, group size limits, and provider qualifications that help ensure that the child care environment is conducive to safety and learning and enable caregivers to promote all domains of children’s development. CCDF health and safety standards help set clear expectations for CCDF providers, form the foundation for health and safety training for child care workers, and establish the baseline for monitoring to ensure compliance with health and safety requirements. These health and safety requirements apply to all providers serving children receiving CCDF services – whether the providers are licensed or license-exempt, must be appropriate to the provider setting and age of the children served, must include specific topics and training on those topics, and are subject to monitoring and enforcement procedures by the Lead Agency. CCDF-required annual monitoring and enforcement actions help ensure that CCDF providers are adopting and implementing health and safety requirements. Through child care licensing, Lead Agencies set minimum requirements, including health and safety requirements, that child care providers must meet to legally operate in that State or Territory. In some cases, CCDF health and safety requirements may be integrated within the licensing system for licensed providers and may be separate for CCDF providers who are license- exempt. This section addresses CCDF health and safety requirements, Lead Agency licensing requirements and exemptions, and comprehensive background checks. When responding to questions in this section, OCC recognizes that each Lead Agency identifies and defines its own categories of care. OCC does not expect Lead Agencies to change their definitions to fit the CCDF-defined categories of care. For these questions, provide responses that best match the CCDF categories of care.