Employers describe on-site and partner childcare programs that boost retention, lawmakers hear

Chair and witnesses told the House subcommittee that employer engagement can help expand access to childcare while federal programs address supply. Hayden Paulcino Hensley, president and co‑founder of Red Rooster Coffee Company, described opening Yellow Hen Childcare in Floyd, Virginia, after local options were scarce. He said the program peaked at 24 children, charged about $1 per hour early on and required the coffee business to subsidize roughly $90,000 a year to operate. “Yellow Hen made it possible for her to return to her job,” Hensley said, describing an employee who later became a managing partner after the program supported her ability to work.

Alex Grover, chief executive officer of I2M (appearing in the transcript as “I 2 m”), testified that her company contracts with local providers, extends hours to fit shift schedules and offsets fees to lower costs for employees. Grover said participation is voluntary but retention among employees who enroll is “nearly 100%,” and that fewer call‑offs improved production stability and safety on 24/7 manufacturing lines.

Marylou Burke Afonso, chief operating officer of Bright Horizons, described a range of employer models—on‑site and near‑site centers, backup care and sliding‑fee arrangements—and said Bright Horizons partners with roughly 1,400 employers. She said employer partnerships can add slots to communities, share training resources and help professionalize the early education workforce.

Witnesses emphasized tradeoffs: Hensley and Grover said employer programs can deliver concrete local results—especially where the employer can absorb upfront costs or partner with a provider—while Matsui and others warned those models often do not scale to meet communitywide supply or raise wages across the sector. Amy K. Matsui, vice president for childcare and income security at the National Women’s Law Center, said employer benefits alone cannot increase supply to meet national need or materially raise wages for early educators.

Members pressed witnesses about barriers: upfront capital and finding space; recruiting and retaining licensed staff; regulatory complexity; and whether small businesses can realistically use tax credits like section 45(f). Hensley said his shop did not use 45(f) initially because it was small and the upfront costs were prohibitive, though he supported clearer IRS guidance to help small employers access the credit.

The hearing underscored that employer efforts can create stability for workers and businesses but leave open questions about scale. The subcommittee heard successive examples of employer innovation and also recurring calls from members and witnesses for sustained public investment to expand supply and raise caregiver pay.

The hearing concluded with leaders on both sides signaling continuing work with the IRS and administration to implement tax changes while members on the Democratic side urged passage of the Child Care for Working Families Act to expand public funding.