Governor Kotek's Oregon Chips Act allocates $5M for childcare support

In a recent meeting of the Joint Committee on Ways and Means Subcommittee on Transportation and Economic Development, Oregon state officials discussed significant funding initiatives aimed at bolstering the semiconductor industry and addressing childcare needs in the state. The meeting, held on April 3, 2025, highlighted the collaboration between the Oregon Business Development Department (OBDD) and the Bureau of Labor and Industries (BOLI) in implementing the Oregon Chips Act, which was established to support local semiconductor businesses.

The Oregon Chips Act, passed as Senate Bill 4 in 2023, allocated $240 million to incentivize semiconductor companies to expand and modernize their operations. This funding is closely tied to the federal CHIPS and Science Act, which aims to enhance the semiconductor supply chain and workforce development. A key focus of the state initiative is the establishment of a childcare fund, as outlined in House Bill 4098, which directs OBDD to partner with BOLI to create a childcare support system for apprentices and journey workers in the semiconductor sector.

During the meeting, Sarah Means, semiconductor manager for Governor Tina Kotek, explained that the childcare fund would provide financial assistance to those who have completed an apprenticeship within the last five years. This initiative is particularly important as it addresses the childcare challenges faced by workers in the semiconductor industry, which has been identified as a critical barrier to workforce participation.

Lindsey Cochran, the childcare infrastructure fund coordinator at Business Oregon, provided insights into the progress of the childcare work group formed under House Bill 4098. The group, which included representatives from the semiconductor industry and early learning advocates, convened to assess the childcare needs of the workforce. However, they were unable to reach a consensus on whether businesses receiving federal semiconductor assistance should be required to contribute to the childcare fund.

The meeting also revealed that approximately $7.5 million has been allocated to support childcare infrastructure and apprenticeship programs. Of this, $5.68 million was designated for BOLI to administer the apprenticeship program, while $2.5 million was directed to the childcare infrastructure fund. Cochran noted that the fund has already facilitated planning projects for childcare facilities in areas where semiconductor businesses are located, with a focus on expanding care options that accommodate non-traditional work hours.

As the state continues to navigate the complexities of workforce development and childcare support, the discussions from this meeting underscore the importance of aligning economic growth with community needs. The anticipated outcomes of these initiatives will be closely monitored as Oregon seeks to strengthen its semiconductor industry while ensuring that workers have access to essential childcare services. The next steps include ongoing funding rounds for the childcare infrastructure fund, with a deadline for applications set for April 30, 2025.