The state will provide grant dollars to 64 businesses and community groups to support child care opportunities for their workforce. (Canva)
Dozens of businesses, community groups and school corporations around the state will receive grants geared toward shoring up the state’s beleaguered child care system after lawmakers established a $25 million fund in 2023.
The $18.1 million award to 64 entities in late December is the first wave of applicants to receive grants and qualifies for 72% of the fund. In November, the Family and Social Services Administration announced it would consider a second round of applications, which will be publicized early this year.
Gov. Eric Holcomb highlighted the role of employers, who encounter hiring difficulties when potential workers can’t secure child care.
“We wanted those who know first-hand the critical needs of their employees, and those who are best positioned to partner in their communities, to create child care solutions for their workforce, and they delivered,” Holcomb said in a release. “This effort harnesses the combined efforts of businesses, community groups, and schools that want to support working Hoosiers’ careers and our youngest learners across the state.”
Of the 46 businesses who won grants, 33 will provide on-site child care and another 13 will offer tuition benefits to their workers. The remaining 18 entities qualified for other grant uses, such as reserving child care seats for employees at partner centers.
The largest award amount, $750,000, went to 30 large employers with 1,000 or more employees and another 25 mid-sized businesses — those with between 100 and 999 employees — received $350,000. The remaining nine small companies had between 20 and 99 employees and received $50,000 each.
“I look forward to seeing all the inventive approaches to child care come to life in communities across the state, and partnering with more businesses, community groups and schools on this important, collaborative effort to support children, their families and the state’s economy,” said Courtney Penn, the FSSA director of the Office of Early Childhood and Out-Of-School Learning. “Birth to age 5 are the most critical in a person’s life, and now more of our next generation will receive early education that is crucial to their brain and social development.”
The Indiana Chamber of Commerce, which has included child care efforts among its legislative priorities before, partnered with the state to promote the program, which also received support from the Indiana Manufacturers Association.
“A lack of quality and affordable child care is what Hoosier employers have consistently told us is now their top external workforce barrier because of the negative impact on worker participation. It’s a statewide infrastructure challenge that also has significant implications for student learning and economic development,” Jason Bearce, the chamber’s vice president of education and workforce development, said in a release.
“The state’s employer child care grants are set to make a real difference in many communities across Indiana by giving Hoosier families much needed options. We are thrilled that more than 60 grant applications were approved in this first round. This will give parents in these locations greater peace of mind and enable some to re-enter the workforce,” he continued.
Grant recipients must submit a finalized implementation plan to the state and contribute a 10% match along with submitting spending reports. Funds can only go to licensed child care providers and those entities creating new child care opportunities must become licensed to receive the grant dollars.
This article originally appeared on Indiana Capital Chronicle.
