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Texas Workforce Commission approves CCDF waiver request, schedules system launch
Summary
The Texas Workforce Commission voted to submit transitional waivers and plan amendments to the Office of Child Care to implement new federal Child Care and Development Fund rules; TWC staff said most required policies are already in place and the agency will implement remaining changes with a new automation system in January.
The Texas Workforce Commission approved a request to submit transitional waivers and corresponding amendments to the Child Care and Development Fund (CCDF) state plan so the state can align with new federal Office of Child Care regulations.
TWC staff told commissioners the new federal CCDF rules require states to pay providers prospectively, cap parent co-payments at 7 percent, and use grants or contracts for some services. Reagan Miller of TWC's Child Care and Early Learning Division said Texas had already adopted many of those policies and will complete remaining changes when its new automation system, Texas Child Care Connection (TEC C3), launches on January 13, 2025. Miller said one waiver will address time needed to develop strategies for the federal requirement to provide child care through grants and contracts.
The commission voted to approve submission of the waiver request and the amended appendix to the CCDF state plan for filing with the federal Office of Child Care. The motion passed unanimously.
Why it matters: The waivers let Texas keep operating under current procedures while the agency updates policy and automation to meet federal requirements. TWC staff emphasized the state was largely already in compliance — for example, paying based on enrollment since 2017 and having a one‑child co‑pay cap previously — but that automation and some federal program design details require additional time and planning.
Details and next steps: TWC will submit the waiver package and the revised appendix and implement the remaining changes with the TEC C3 system launch in January 2025. Staff said the state must still design approaches to comply with the federal expectation to deliver some services via grants and contracts; TWC rules and state statute permit contracted slots, but local implementation has been limited.
