County launches first short‑term investments from childcare tax fund, seeks rapid gap funding to stabilize providers

Travis County staff on Aug. 26 moved to start distributing short‑term investments from the voter‑approved childcare and out‑of‑school time fund, presenting interlocal agreements with Austin ISD, Del Valle ISD and Manor ISD that county leaders approved unanimously.

The context: Voters approved approximately $75 million to expand affordable child care and after‑school services; county staff said they plan multiple short‑term investments totaling more than $34 million that will expand scholarships and after‑school seats while a long‑term implementation plan is developed. Health and Human Services staff said the county is moving faster than typical jurisdictions to invest the funds.

What the court approved now • Austin ISD — an interlocal to fund half‑day pre‑K add‑on childcare and after‑school care at AISD Apple Blossom sites: $3.7 million to serve up to 300 three‑year‑olds across two school years. • Del Valle ISD — after‑school for pre‑K4 students at nine schools: $2,575,000 over two school years. • Manor ISD — after‑school and summer programs in partnership with Boys & Girls Club at nine sites, serving about 1,500 K‑12 youth: $3.4 million over two school years and summers.

Staff urged faster rollout of gap funding for community providers Several child care advocates and providers told the court the county must rapidly deliver “gap funding” that covers the difference between state subsidy rates and the true cost of quality child care. Allison Alter, who helped organize the county’s TRE campaign and is working with Workforce Solutions, asked the court to roll out gap funding now — “preferably retroactively to January or July 2025” — to prevent provider closures and to allow the workforce solutions contractor to expand capacity for up to 1,000 additional 0‑to‑3 scholarships. County staff confirmed they are working with Workforce Solutions on a gap funding contract and expect to present it in late September or October.

Operational points and timing Health and Human Services said short‑term investments include training, early head start, and slots for children while a long‑term plan is developed; HHS also said it has hired additional outreach/casework staff and is operating a multi‑agency resource center to help flood‑affected families access services including child care funds. Pilar Sanchez, County Executive for Health and Human Services, said $24 million of the TRE funds are earmarked for Workforce Solutions to expand 0‑to‑3 scholarships and that staff are prepared to backdate contracted funding where feasible.

Why advocates pushed for rapid action Providers and advocates warned that without gap funding, community providers that enroll subsidized children will operate at a deficit and risk closure. Open Door Preschools reported a current operating shortfall illustrative of the problem and asked the county to expedite provider gap funding to stabilize the local provider network. Advocates also urged the county to minimize administrative burden and align contracting timelines with school‑year rhythms so seats open when families need them.

Next steps HHS staff said they will return to the court with additional short‑term contracts in the coming weeks and a proposed gap‑funding contract for workforce solutions in late September or October. The court approved the three ISD contracts and asked staff to keep the community advisory task force engaged in implementation planning.

Ending County officials hailed the progress as unusually rapid deployment of voter‑approved funds and said they will continue outreach to providers, Workforce Solutions and school districts to push gap funding and contract implementation as quickly as possible.