By Michael Wood, Vice President, Education & Workforce
Texas is losing workers because of a solvable problem: child care challenges. 
A 2021 study by the U.S. Chamber of Commerce Foundation found more than a third of working parents in Texas who quit or planned to quit their jobs cited child care as a primary reason for their decision. As a result, Texas loses over $9 billion annually in economic productivity from employee turnover and reduced workforce participation—all because working parents can’t find or afford quality child care.
Forward-thinking companies have recognized this challenge as an opportunity. By offering child care benefits—from financial assistance to on-site facilities—employers are helping parents and their bottom line. According to Boston Consulting Group, these investments yield returns of 90% to 425%.
Policymakers are taking note, presenting an opportunity for the DRC and our member companies in the 89th Texas Legislative Session.
Taking an informed approach to policy recommendations
The DRC is championing a three-way partnership between employers, employees, and the government to make child care more affordable for working families.
In 2024, we formed a Child Care Policy Work Group with more than 15 member companies to explore models of government supports for employer child care benefits and make recommendations for lawmakers in the 89th Texas Legislative Session.
Programs in Kentucky, Michigan, and North Carolina have implemented plans that effectively split the cost between the government, employer, and employee. Results from an evaluation of Michigan’s “Tri-Share” program found a significant reduction in employee child care costs and improvements in employee satisfaction and retention.
Texas Legislature takes action
Two bills have been proposed to establish the Texas Employer Childcare Contribution Partnership Program:
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- House Bill 3191 by Rep. Angie Chen Button
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- Senate Bill 2164 by Sen. Tan Parker
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If passed, these bills would support employer child care initiatives through:
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- Franchise tax credits up to $3,600 annually per child
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- Matching funds up to $3,600 per child for employers who contribute at least $1,200 annually per child toward care costs
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The matching fund structure incentivizes support for employees at all income levels, with the state matching 100% of employer contributions for workers at or below the state median income.
Dallas County leads the way
While state legislation advances, Dallas County has taken first steps to pilot a program similar to what’s been proposed in Austin.
In March, the Commissioners Court approved the Dallas County Child Care Benefits Program, which offers employers matching funds for investments in child care assistance. The pilot received an initial investment of $1 million for administration and to provide match funds.
Dallas County is the first local government in Texas to offer employers incentive funding for employee child care benefits, and the program will serve as proof-of-concept for the proposals in front of our state lawmakers while delivering relief to working parents struggling with child care costs.
What comes next?
HB 3191 was heard by the Texas House Committee on Trade, Workforce, and Economic Development on Wednesday, April 9. Jarrad Toussant, the DRC’s Senior Vice President of Education & Workforce, provided testimony in support of the bill.
Next, HB 3191 awaits a committee vote before advancing to the full House for consideration. SB 2164 has been assigned to a committee and is awaiting a scheduled hearing. The DRC will continue working with our lawmakers and partners across the state to advocate for these bills.
If your company is located in Dallas County and wants to join the pilot program, please complete the County’s interest form.
If your company has seen the impacts of child care challenges, I hope you’ll connect with me and join us in advocating for a state-supported solution. Send me a note with your thoughts.