At United Way of Metropolitan Dallas, we are focused on making our region the best place to live, work and raise a family. Early childhood education that supports North Texas families and our regional economy is an important component of our work.  

Because of our advocacy efforts in part, the Live United movement is helping drive real progress in early childhood education—but we know lasting change requires strong federal, state and local investments to expand quality, access and affordability. Here’s why. 

Access to high-quality, affordable early childhood education remains a critical barrier to work and economic stability for many North Texas families. When reliable childcare is unavailable or unaffordable, low-income working parents are often forced to reduce their work hours or leave the workforce altogether—heightening their risk of unemployment, housing instability and financial hardship. The national economy loses $57 billion annually when workers do not come to work because of lack of childcare. Texas loses nearly $10 billion each year as a result of parents leaving the workforce.  

The good news is that there is a bipartisan effort to increase public funding for early childhood education. Read on to learn how childcare is funded in Texas and to discover some of the current initiatives aimed at improving the early childhood education system. 

How is childcare publicly funded in Texas? 

The majority of public childcare funding in Texas comes from the federal Child Care and Development Fund (CCDF), authorized by the Child Care and Development Block Grant (CCDBG) Act. CCDF dollars are used to: 

• Provide childcare subsidies (known as “scholarships”) to low-income working families 

• Improve childcare quality and safety 

• Support workforce stability in the childcare sector 

Texas receives CCDF funds through the U.S. Department of Health and Human Services and administers them through the Texas Workforce Commission (TWC). TWC manages the statewide Child Care Services (CCS) program, which provides childcare scholarships. Local Workforce Development Boards administer those funds to local Workforce Solutions Offices, which partner with childcare resource and referral agencies, Headstart and childcare providers to help eligible parents find quality care in their community while working, in school or in training.   

Who receives childcare scholarships? What are the eligibility criteria?  

To receive publicly funded childcare in Texas, families must generally: 

• Have income below 85% of state median income (about $92,000 annually for a family of four)  

• Be working, in school, in job training or on an approved job search 

• Have a child under 13 (or under 18 with a disability) 

Eligible parents receive a scholarship that is paid directly to the childcare provider.  Families pay a co-payment based on income.  These childcare scholarships can be used at licensed centers, home-based providers and faith-based programs.  

Texas provides limited ongoing state general revenue to expand childcare scholarships. As a result, there are large, persistent waitlists, exceeding 90,000 children across the state. Around 9,000 children are on the waitlist in North Texas.  

During the pandemic, Texas received large onetime federal childcare relief investments, most of which expired in 2024. More sustained funding is needed to meet the unmet need and reduce the number of eligible families on the waiting list.  

What has been the state response?  

During the 89th Texas Legislative Session, United Way prioritized access to affordable, high-quality childcare and early childhood programs that resulted in a historic $100 million investment for more childcare scholarships, which would move eligible low-income working families off the waitlist.  

Gov. Greg Abbott recently launched an 11-member Taskforce on Early Childhood Education and Care to improve childcare quality, access and affordability for Texas families and address inefficiencies in the childcare regulatory system. When announcing the taskforce, Gov. Abbott said, “The real reason why we passed this bill…is because of the importance of helping parents across the entire state be able to access quality and affordable childcare and child education for their children.”   

The state also plans to establish a Quad-Agency Child Care Initiative to bring together TWC and the Health and Human Services Commission, Department of Family Protective Services and Texas Education Agency to review and streamline regulations that would impact childcare programs.   

What has been the local response? 

Across the country, cities and counties have successfully organized voter-approved ballot measures, generating more than $542 million annually in dedicated public funding for early childhood programs, including a landmark initiative in Travis County (Austin) led by United Way of Greater Austin. Travis County approved a 2.5-cent property tax that provides affordable childcare and youth services that will generate approximately $75 million annually to fund services for infants, toddlers and children in low-income families. 

In Dallas County, there is an emerging exploratory initiative to pursue a childcare and out-of-school time investment. This investment could generate $120 million in public funds, through a modest 3-cent property tax. This initiative is designed to expand access to quality, affordable care, strengthen the workforce by supporting parent employment and stable childcare staffing, and promote long-term family economic mobility. 

How is United Way supporting public funding for early childhood education? 

United Way of Metropolitan Dallas, in collaboration with regional partners, is exploring a proposed public funding investment in childcare and out-of-school time in North Texas that could appear on the November 2026 ballot for voter approval. This Dallas County initiative aims to expand access to quality, affordable childcare—strengthening families, supporting working parents and building long-term economic stability. 

Advocate With Us 

We invite you to stay connected to learn how you can support this public investment that will benefit working families and boost our regional and national economies.  

For further information, please email Hillary Evans, vice president of Policy and Advocacy at United Way of Metropolitan Dallas, at hevans@unitedwaydallas.org.