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More than 40% of childcare facilities in Texas may close within the next year, survey says

The Texas Workforce Commission provided more than $34 billion to childcare centers through the CARES Act. Those checks stopped in May.

RICHMOND, Texas —  Child care advocates are sounding the alarm about a potential problem that can affect thousands of Texas families.

Federal grants through the Child Care Relief Fund that helped centers during the pandemic, have ended.

And a recent survey by the Texas Association of Education of Young Children showed, 44% of respondents said the lack of funds would mean their child care center would likely close.

“When those funds go away, they are going to be put into some dire financial situations, and there are going to be some tough decisions that have to be made,” said TXAEYC Executive Director Cody Summerville.

Summerville said there are 1600 less child care programs operating today and 243 communities have become childcare deserts since March 2020.

The sharp decrease in child care availability, accessibility, and affordability are due to many factors according to Tim Kaminski, who has been in the child care business in the Richmond and Rosenberg areas for 40 years.

“The biggest thing everyone is facing right now are wages,” said Kaminski, owner of Gingerbread Kids Academy.

“The wages in childcare tend to be $9-$12 per hour, and most of the corporate entities in the area like McDonald’s or Buc-ee’s are able to pay $15, $18, sometimes $20 an hour.

In 2021 and 2022 the Texas Workforce Commission got a total of $5.9 billion in federal relief funds, with $4 billion going directly to child care programs in the state, through Child Care Relief Fund grants.

The money helped these businesses with payroll, mortgages and utilities.

But when the checks stopped in May, child care centers reported they would be forced to close – some, within the next year.

Kaminski said the solution is not as simple as raising tuition rates.

“There comes a point when a parent is paying more for childcare than they are for their mortgage,” said Kaminski.

Kaminski and Summerville want state leaders to recognize that offering more child care options would entice companies and corporations into setting up their headquarters in Texas. 

“Our politicians just don’t understand what the problem is,” said Kaminski.

“Without the support going into next year this is going to be like the pandemic. It’ll be our next pandemic.

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