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For thousands of working families across Central Texas, child care isn't simply a household expense. It's what makes it possible to go to work, build a career, attend school or complete training. It's also an important part of the infrastructure that keeps our regional economy moving.

That's why recent news about changes to child care scholarship funding across Texas understandably raises questions for families, child care providers and employers.

At Workforce Solutions Rural Capital Area (WSRCA), we want our community to understand what's happening, how the child care scholarship system works, and what our role is in serving families here in the Rural Capital Area.

Putting Available Resources to Work

Child Care Services scholarships are supported by public funding administered through the Texas Workforce Commission (TWC) in partnership with local workforce development boards across the state.

WSRCA doesn't determine how much state or federal funding is made available for the program. We don't set statewide funding levels or determine the number of children Texas plans to serve. Our responsibility is to take the resources allocated to the Rural Capital Area and put them to work for the families, child care providers and communities we serve.

We take that responsibility seriously. We're grateful for the opportunity and the trust placed in us to serve our community with the resources available.

TWC is also working to direct more resources toward child care. In July, the Commission approved an increase of approximately $30 million to the Fiscal Year 2027 Child Care Services allocation by shifting funding from state initiatives toward direct care.

At the same time, the cost of providing child care continues to rise. TWC reports that the average monthly cost per child increased from $581 in Board Contract Year 2022 to $714 in 2025. Through June of 2026, that average had reached $798, with TWC projecting an average of $902 in 2027.

That means even when additional funding is made available, rising costs can affect how many children those dollars can support.

For WSRCA, the responsibility is straightforward: make every available dollar count and serve as many eligible families as the resources provided to our region will support.

Child Care Keeps Our Workforce Moving

We see the connection between child care and work every day.

A parent may have the skills and experience an employer needs, but without reliable child care, getting to work consistently can become difficult. Someone may be ready to begin training for a better-paying career, but they still need a safe place for their child while they're in class. An employer may have jobs available, but parents can't fill those positions if child care isn't accessible.

That's why WSRCA views child care as an essential part of workforce development.

The impact extends across Texas. According to TWC, parents and caregivers participating in Child Care Services earned $2.7 billion in wages during Board Contract Year 2025.

Here in the Rural Capital Area, WSRCA's Child Care Services supported 3,289 families and served 4,641 children in 2025. We also supported 318 child care providers throughout the region.

Those numbers represent much more than program statistics. They represent parents who could go to work, children who had access to care, and local employers that could count on members of their workforce being able to show up.

Why Funding Doesn't Always Mean More Children Served

One of the most difficult parts of the current child care funding environment is that the cost of care continues to increase.

All Child Care Services providers are required to participate in the Texas Rising Star program, helping ensure children receiving scholarships have access to quality care. Those higher standards also come with higher reimbursement rates. At the same time, TWC has implemented additional measures aimed at reducing fraud and protecting the responsible use of taxpayer dollars.

Another factor is the expiration of one-time federal resources. TWC has been spending down a one-time balance of federal Child Care and Development Fund funding. As those funds are expended, the total amount available for child care subsidies decreases.

Taken together, these factors create a difficult reality. The cost of serving each child is increasing while some temporary funding that helped support the system is coming to an end.

That isn't a decision made by WSRCA. It's the funding environment within which we must administer the program locally.

Making Every Available Dollar Count

We know funding discussions can quickly become about allocations, targets and percentages. For families, the issue is much more personal.

Behind every child care scholarship is a parent trying to get to work, build a career or complete an education. Behind every provider are educators and small business owners caring for children while navigating many of the same rising costs affecting households and businesses throughout Central Texas.

Those realities are never lost on us.

As TWC establishes funding and service targets for the coming year, WSRCA will continue evaluating what those decisions mean specifically for the Rural Capital Area. We'll communicate with families and child care providers as additional information becomes available, and we'll work to make those updates clear and easy to understand.

What won't change is our commitment to responsible stewardship.

We will continue working to make the greatest possible impact with the resources entrusted to our region. That's the responsibility we've been given, and it's one we're proud to carry.

Grateful for the Opportunity to Serve

WSRCA serves nine counties and communities of many different sizes, from some of the fastest-growing communities in Texas to smaller rural towns. The needs aren't identical everywhere, but the importance of connecting people with opportunity is something we share across the region.

We're grateful for the honor of serving the Rural Capital Area and for the trust our communities place in us.

We don't control the amount of child care funding made available to our region. What we do control is how seriously we approach the responsibility we're given.

We'll continue to be careful stewards of public resources, support working families and partner with child care providers. We'll continue working toward a strong workforce and a strong regional child care system.

Most importantly, we'll continue putting the resources available to us to work for the people and communities we have the privilege to serve.