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- calendar_today October 22, 2026
Texas Implements New Quality Controls on Child Care Subsidies
Recent changes to Texas’ child care subsidy system have led to thousands of children being excluded from affordable daycare programs as the state faces rising costs and constrained funding. Central to this shift are increased quality control requirements in the state’s subsidized child care programs, which have raised costs and forced officials to cut enrollment.
Rising Costs and Reduced Enrollment
In August, the Texas Workforce Commission (TWC) announced that the per-child cost for those receiving federal Child Care Services subsidies had grown beyond what the program could support. These subsidies help low-income families with all or part of their child care tuition. TWC responded by cutting the number of children served statewide by nearly 10% in 2027. This reduction is projected to add 14,000 children to a waitlist that already tops 100,000 names.
Texas Rising Star Mandate and Its Impact
According to a Legislative Budget Board report, two main factors contributed to the rising cost of child care subsidies: inflation and an increase in providers qualifying for higher payments through the Texas Rising Star program. This certification, which pays higher rates to qualifying centers, grew to cover nearly 75% of all providers by 2025, up from less than 30% before 2021.
This surge is attributed to Texas House Bill 2607, enacted in 2021, which requires child care programs that accept subsidized students to be Texas Rising Star certified. Led in the House by Rep. James Talarico, this law was designed to ensure that low-income children received higher-quality care and gave parents more control over the quality of provider they chose.
Financial Strain and Criticism
Despite its intentions to improve child care quality, the mandate did not come with additional state funding. Instead, the legislature relied on federal relief funds, like those from the American Rescue Plan Act, to cover the costs. Critics argued at the time that this approach would leave Texas vulnerable when federal funds ran out.
Average monthly costs per child have climbed from $581 in 2022 to a projected $904 in 2027. Lawmakers reallocated a one-time infusion of $100 million in federal money in 2025, but TWC still reduced the number of children served. Advocates like Tim Kaminski, president of the Texas Licensed Child Care Association, warned that lack of a sustainable funding mechanism would lead to precisely these cuts.
Effects on Providers and Families
Child care providers face their own challenges from the new quality standards. Katrina Smith, who runs two Texas Rising Star 4 Star programs, says maintaining top certification is costly and labor-intensive, as it involves frequent assessments, upgraded facilities, and continuous replacement of learning materials damaged by young children. Staffing is also problematic, with many teachers choosing higher-paying jobs elsewhere.
The cuts to Texas’ subsidy program disproportionately affect low-income families who rely on affordable child care. Without additional funding, even high-quality programs may be forced to scale back or turn away children who need their services.
National Context and Outlook
Texas is not alone in facing child care funding challenges. Other states have also been forced to reduce the number of children served or have struggled to replace expiring federal support. Meanwhile, some, like Florida and New Mexico, have found ways to permanently fund their child care subsidy programs, treating early childhood education as an economic investment.
The fate of Texas’ child care access hangs in the balance, as advocates call for consistent state investment to maintain both high quality and wide accessibility in early childhood education. Without new funding solutions, waitlists will continue to grow and more children could lose crucial opportunities for quality care and school readiness.
Source: feeds.texastribune.org.
