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Funding Opportunities for Austin Childcare Centers

spencer655
1 day ago
3 min read

A guide to local, state, and federal programs supporting early childhood education in Austin, Texas.

Austin’s childcare landscape is undergoing a major shift. With new investments from Travis County, the City of Austin, and the Texas Workforce Commission (TWC), more public funding is available now than at any time in the past decade.

If you operate a childcare center, preschool, or home-based program in Austin, here’s how to navigate the current funding environment and position your program for long-term stability.

1. Federal & State Funding Channels for Austin Childcare

Head Start / Early Head Start

Competitive federal grants providing comprehensive services for infants, toddlers, and preschoolers in low-income families. These awards are significant but selective—keep an eye on Grants.gov and the Office of Child Care for open solicitations.

Child Care Development Fund (CCDF)

Federal childcare dollars flow through TWC to local workforce boards such as Workforce Solutions Capital Area.

By contracting locally, centers can:

Serve subsidized families
Access quality-improvement incentives
Receive higher reimbursement rates based on TRS status

Texas Rising Star (TRS)

TRS is the state’s quality-rating and improvement system.

Benefits of joining TRS:

Priority access to grants
Higher reimbursement tiers
Coaching and quality-improvement support
Even TRS Entry-Level providers can begin receiving benefits while working toward a higher rating.

Preschool Development Grant B-5

Through 2025, Texas is using federal PDG funds to support community partnerships, professional development, and center-based quality projects. Many of these dollars are distributed as sub-grants or training awards.

2. County-Level Childcare Funding: Travis County

Raising Travis County

This voter-approved $75.5 million early childhood initiative is transforming access to childcare across the county.

Key components include:

$21 million administered by Workforce Solutions Capital Area for childcare scholarships
Gap-funding contracts to help centers cover the difference between reimbursement rates and actual costs of care
Quality bonuses tied to TRS rating, extended hours, or expanded capacity

County–School District Partnerships

Travis County is investing in collaborations with Austin ISD, Del Valle ISD, and Manor ISD to expand pre-K and after-school options.

Private centers may be eligible to:

Share facilities
Provide wraparound care
Participate in extended-day partnerships

3. City of Austin Childcare Initiatives

Home-Based Provider Relief Grants

Launching in 2025 through United Way for Greater Austin, this program will offer financial assistance to licensed and registered family childcare homes—an important stabilizer for home-based providers.

Austin Public Health: Early Childhood Resources

While not direct funding, APH offers valuable no-cost supports such as:

Professional development
Health and safety materials
Compliance guidance
These resources can significantly offset operational expenses for both small and mid-sized programs.

4. How to Prepare and Qualify for Childcare Funding

Step	Action
1. Contract with Workforce Solutions Capital Area	Attend orientation and complete the provider agreement to begin receiving CCS enrollments and quality funds.
2. Enroll in Texas Rising Star	Entry-Level provides immediate benefits while you work toward higher tiers.
3. Follow County Announcements	Monitor updates on the Raising Travis County page for new contracts and provider opportunities.
4. Update Compliance Materials	Maintain an active license, clean inspection record, staffing plan, insurance certificates, and budget documents.
5. Look for Expansion Opportunities	TWC is prioritizing new sites in childcare “deserts” and employer-partner locations, often with start-up funding attached.