Something like: Texas expects its child care subsidy program to support roughly 14,000 fewer children on an average day next year, with newly approved TWC targets showing dramatically different changes across North Texas. Texas lawmakers took up the state’s child care system Wednesday during a House Trade, Workforce and Economic Development Committee hearing. The discussion came shortly after TWC approved lower subsidy targets for nearly every workforce region in the state, with lawmakers and witnesses discussing rising costs, lengthy waitlists and the role access to child care plays in keeping parents in the workforce. In August, the Texas Workforce Commission approved a statewide 2027 target of 132,689 average children served per day, down about 9.6% from the original 2026 target of 146,736. The targets represent the average number of children TWC estimates available funding can support each day, not a count of individual children who will lose assistance. TWC calculates the targets separately for each of the state’s 28 workforce regions based on available funding and the estimated cost of providing care. In North Texas, those calculations produced sharply different results. Dallas County’s target falls 12.2%, from 13,120 to 11,516 average children per day. Tarrant County falls 4.3%, while North Central Texas, including Collin and Denton counties, increases 7.1%. North Central Texas is the only one of the state’s 28 workforce regions with a 2027 target above its original 2026 target, according to an NBC 5 analysis of TWC data. Rising costs stretch available funding TWC has already directed additional money toward the program, including a $29.7 million supplemental allocation approved in July. But the agency told NBC 5 that “the cost of child care is increasing and we expect those increases to continue.” Even with the additional funding, TWC estimates it can support fewer children statewide in 2027 than under its original 2026 target. Rep. Angie Chen Button, R-Richardson, chair of the House Trade, Workforce and Economic Development Committee, asked about the impact in Dallas County, where the 2027 target is 1,604 children per day lower than the original 2026 target. Button asked TWC to review the figures and provide the committee with an official analysis. TWC Executive Director Steve Pier agreed but did not offer an explanation during the hearing. Max Rombado, director of early learning policy at Texans Care for Children, said. “As a result of the rising cost of child care and the available funding, which is lagging behind that growth in cost, the Texas Workforce Commission has to make the difficult decision of reducing the capacity for these scholarships, meaning there will be less access to these scholarships moving forward.” Rombado said increasing costs put pressure on TWC to reduce its target, which can impact families. “They have to make difficult decisions like not going to work to take care of their child, which means their child loses access to high-quality, safe and enriching environments and care.” Impact on providers Tim Kaminski, president of the Texas Licensed Child Care Association, told lawmakers providers are being squeezed by rising labor, insurance and regulatory costs as families struggle to afford care. He called child care “workforce infrastructure,” arguing that when providers cannot afford to operate, the effects extend to parents’ ability to work and the broader economy. Ripple effects of childcare access Michael Wood, vice president of education and workforce for the Dallas Regional Chamber, called child care the “workforce behind the workforce,” telling lawmakers that a lack of reliable, affordable care can keep parents from fully participating in the labor force and hurt employers. He pointed to North Texas employers including Parkland Health, Children’s Health and Richardson ISD that have already developed child care benefits or programs for workers The consequences of inadequate care can be significant. A 2021 U.S. Chamber of Commerce Foundation study estimated child care problems cost the Texas economy $9.39 billion annually, including $7.59 billion in employer costs from absences and turnover and $1.8 billion in lost tax revenue. Nearly three-quarters of parents surveyed reported missing work because of child care issues. Rombado said reducing access only increases those economic consequences. “The more the state reduces that access, the more that opportunity cost grows,” pointing to parents working less or leaving the workforce altogether. Next steps Wednesday’s hearing was the first step for lawmakers as they gather information to make recommendations in the 2027 legislative session. Childcare access and workforce participation are among the interim charges the Texas House Committee on Trade, Workforce and Economic Development is tasked with exploring. This story uses functionality that may not work in our app. Click here to open the story in your web browser. ...read more read less