Bill would let local workforce boards top-up childcare reimbursements for high-quality providers in low-income areas

The Committee on State Affairs heard House Bill 2294, a measure by Representative Sophronia Thompson explained in the Senate by Dean Zaffirini, that would allow workforce development boards greater flexibility to reimburse providers participating in the Texas Rising Star (TRS) quality system at the TRS maximum quality rate even when local market-published rates are lower.

Supporters, including Children at Risk, said the change would let local boards pair existing local funds with state funds to close the gap that currently penalizes high-quality providers operating in low-income markets. Kim Coughran, senior director of education at Children at Risk, told senators the state has identified more than 850 childcare deserts for low-income working families and that many workforce areas have lost subsidy seats, in some cases up to 43% in certain legislative districts. She said the bill would allow local boards to use local dollars to top up reimbursement so providers in low-income communities receive payment at a quality-based maximum rate rather than the lower market-based published rate.

Sponsors said the change would not reduce the total number of subsidized children served across the state: the bill conditions any local top-up on maintaining the Texas Workforce Commission’s (TWC) average number of children served each day in the relevant workforce area.

There was no recorded opposition in the hearing and the committee left the bill pending.

(Ending) Supporters said the bill is a limited, local-option change designed to reduce childcare deserts and stabilize high-quality providers where market rates are low; the committee left the measure pending.