Gov. Reynolds announced today a new Child Care Business Incentive Grant Program to encourage employers to offer childcare as a benefit to their employees.
The Child Care Business Incentive Grant Program will provide a total of $25 million to support childcare projects across the state. $20 million will be utilized to support local infrastructure investments to build or expand childcare capacity, and $5 million will be used to support arrangements between employers and childcare facilities to expand and reserve childcare slots. Potential projects could include the creation and development of an on-site childcare center or a partnership with an existing childcare center to create new childcare slots paid for by a local employer.
I’ve heard from both parents and employers that childcare is a barrier to work in our state," said Gov. Reynolds. "One of the top recommendations from my Child Care Task Force was to incentivize employer investment in childcare. This program will do just that by encouraging employers to help deliver childcare solutions to their employees, thereby bolstering opportunities for recruitment and retention of workers.
Creating flexible options for childcare at work not only helps families, but it also makes it easier for employers to recruit and retain the skilled workforce they need," said Beth Townsend, Director of Iowa Workforce Development. "It is vital to our economic growth that we provide parents with reliable and affordable childcare options, especially those who are looking to reenter the workforce.
Access to quality childcare is critical to the success of working families," said Kelly Garcia, Director of Iowa’s Department of Human Services. "This program underscores Iowa’s commitment to working families by putting childcare where it’s convenient for parents, children, and employers.
In March 2021, Gov. Reynolds launched the Child Care Task Force to address the childcare shortage in Iowa. While Iowa is a national leader in the share of households with all parents working, 23 percent of Iowans live in a “childcare desert,” and Iowa has lost 33 percent of its childcare businesses over the past five years. It’s estimated that Iowa’s childcare shortage costs the State’s economy roughly $935 million annually in lost tax revenue, worker absences, and employee turnover.
Gov. Reynolds has directed state agencies to implement many of the report’s recommendations, investing more than $500 million of state and federal funds to address the crisis. Investments include the Child Care Challenge Fund grants, which will help to create an estimated more than 9,000 new childcare slots across the state, as well as the Child Care Stabilization Grants and Recruitment and Retention Bonuses for Child Care Workers.
Information on the Child Care Business Incentive Grant Program is now available. The state will begin accepting applications on IowaGrants.gov starting on Friday, June 17. Applications must be submitted by Monday, July 18.
Read the full Child Care Task Force Report.
Federal ARPA funds are being allocated for this grant program.