By Michael Wood, Vice President, Education & Workforce
Expanding access to quality, affordable child care is critically important to ensuring a robust and reliable workforce that addresses the needs of Dallas Region employers. A 2021 report from the U.S. Chamber of Commerce Foundation estimates that child care challenges cost Texas north of $9 billion annually.
The DRC has long been an advocate for child care solutions at the local and state level. In the 88th Texas Legislative Session in 2023, the DRC supported legislation to create an optional tax break for child care providers and helped pass the associated constitutional amendment (Prop 2) in November 2023.
New efforts at the local and state level provide additional opportunities to explore innovative child care solutions, including employer-driven approaches.
Dallas County pilot will test employer demand for child care incentives
In March, the Dallas County Commissioner’s Court approved $1 million to establish a pilot program to provide employers matching funds for child care benefits. The DRC supported the development of the pilot program and advocated for its passage ahead of the March 4 Dallas County Commissioner’s Court meeting.
The Dallas County Child Care Benefits Program is the first of its kind in the state. The County has contracted with TOOTRiS, a national technology company that connects stakeholders with child care services, to recruit employers and administer the program.
To be eligible, both the employer and participating employees must be located in Dallas County. Employers must provide a financial contribution toward participating employee child care costs to draw down County support.
Eligible employers can submit an interest form to connect with TOOTRiS to learn more about the program.
State incentives for employer child care benefits fall short of the Governor’s desk
Two bills supported by the DRC that would have created incentives for employers to provide child care benefits – House Bill (HB) 3191 and Senate Bill (SB) 2164 – failed to pass.
Together, the bills as originally filed would have established a program similar to the pilot program in Dallas County, providing matching funds to employers for financial contributions toward employee child care costs. Additionally, both bills also recommended a franchise tax credit for eligible employers offering child care benefits. The bills were, in part, inspired by similar programs in states such as Kentucky, Michigan, and North Carolina that split the cost of child care between the government, employer, and employee.
Despite this setback, local efforts like the pilot in Dallas County provide a path forward for innovative child care solutions.
New state task forces will explore child care solutions ahead of the 2027 Texas Legislative Session
While legislation on employer child care incentives fell short, state lawmakers did approve two bills, HB 117 and HB 4903, both supported by the DRC, to create new task forces that will study child care solutions ahead of the 90th Texas Legislative Session in 2027.
HB 117 establishes the Governor’s Taskforce on the Governance of Early Childhood Education and Care. The primary charge of the task force is to make recommendations to streamline the governance and operations of the state’s early childhood education system, which is currently divided across multiple state agencies. The task force will also identify policy and budget recommendations to improve the affordability of child care.
HB 4903 creates the Quad-Agency Child Care Commission, comprised of representatives from the relevant state agencies that manage child care in Texas. The commission will explore inter-agency initiatives to expand access to quality, affordable child care.
Both bodies will present stakeholders with an opportunity to elevate child care solutions, such as the Dallas County pilot program, ahead of the 2027 Texas Legislative session.
If your company has seen the impacts of child care challenges, I hope you’ll connect with me to discuss these and other solutions to expand access to quality, affordable child care for your employees. Send me a note with your thoughts.