Report on Child Care Quality Expenditures in Texas
The mission of the Texas Workforce Commission (TWC) is to promote and support a workforce
system that offers employers, individuals, and communities the opportunity to achieve and sustain
economic prosperity. Historically, one of the greatest barriers to achieving and maintaining
employment is the lack of affordable and reliable child care. Therefore, providing child care for
those who are working or training for work is an integral part of TWC’s workforce system.
Having sufficient funding for child care services is an ongoing challenge for Texas. Even though
Texas is one of the few states that does not use TANF funds in addition to federal child care
dollars, the state does use every available child care dollar, including drawing down all federal
matching funds, to keep as many children in care as possible. TWC, through local workforce
development boards (Boards), partner with child care providers across the state to provide this
much needed work support.
Historical Overview
In 1993, the 72nd Legislature passed HCR 82 in response to extensive testimony concerning
child care services in Texas. The House resolution encouraged appropriations to the Department
of Human Services (which was the child care program lead agency) sufficient to reimburse child
care facilities above the federally mandated 75th percentile payment levels.
Realizing that child care is a vital work support and key to economic development, the Texas
Legislature enacted H.B. 1863 in 1995 that merged 28 workforce programs--including the state’s
subsidized child care program--into the Texas Workforce Commission (TWC), comprehensively
reforming the state’s workforce and welfare systems.
The following year, Congress enacted federal welfare reform, PL 104-193, or the Personal
Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. Congress
combined federal child care funds authorized under several different grants and acts into the
Child Care and Development Fund (CCDF). At the sa