That $100 Million For Childcare in Texas Didn’t Go Far

November 27, 2025 – LUFKIN — When Texas lawmakers approved a $100 million boost to the state’s child care scholarship fund earlier this year, the investment was billed as a lifeline for working families struggling with soaring child-care costs. But months later, many child-care centers say they have seen little change — and thousands of eligible families remain stuck on waitlists.

The problem, state officials and providers say, comes down to how the money was structured and how quickly costs have risen.

The $100 million infusion was intended to stabilize the Texas Workforce Commission’s child-care assistance program, which helps low-income parents afford care so they can stay in the workforce. But unlike past emergency federal funding, the new state money did not expand capacity. Instead, it was largely absorbed by rising reimbursement rates — the amount the state pays providers per child.

In short: the money helped keep the system from collapsing, but it didn’t create many new spots.

Providers across East Texas say they’re operating at — or beyond — capacity, with staffing shortages making expansion nearly impossible. “We can’t open a new classroom without a qualified teacher,” said one Lufkin-area director. “Even if more families qualify for aid, we have nowhere to put the kids.”

Families are feeling the impact. While demand for subsidized child care is growing, especially in rural and low-income areas, providers say inflation, rising wages, and new safety and quality requirements have outpaced funding. As a result, the $100 million stabilized the program on paper but failed to meaningfully shorten waitlists.

Child-care advocates argue that Texas will need recurring, long-term investments — not one-time boosts — to make subsidized care both accessible to families and financially sustainable for providers.

For now, parents in Lufkin and across the state continue waiting, hoping the next legislative session delivers a fix.