Executive Summary:
Ohio House Bill No. 41 proposes the establishment of new child care grant programs aimed at increasing child care capacity across the state and supporting the workforce. The bill allocates a total of $10,250,000 in each of the fiscal years 2026 and 2027 from the General Revenue Fund for these initiatives. The funding will be used to administer grants to employers and community partners for expanding child care facilities and to establish a learning lab and resources to support future grant applicants and other entities interested in increasing child care capacity. The bill prioritizes publicly funded child care that participates in the state’s tiered quality rating and improvement system.
Main Themes and Important Ideas/Facts:
1. Establishment of Child Care Grant Programs:
- The bill mandates the creation of “certain child care grant programs, including those related to child care capacity and learning labs.”
- It appropriates $10,250,000 in each fiscal year (2026 and 2027) from the General Revenue Fund for “Child Care Grants” under the Department of Children and Youth.
- This appropriation is in addition to any other operating appropriations made for these fiscal years.
2. Child Care Capacity Grants ($10,000,000 annually):
- Purpose: These grants aim “to assist employers in retrofitting or equipping their onsite or near-site child care facilities, in building new child care facilities, or in partnering with child care providers, government entities, nonprofit organizations, or others on initiatives to create child care capacity within their communities to support the workforce.”
- Goals: The program intends “to increase the availability of child care in communities across Ohio and to aid in business growth and recruitment in this state.”
- Eligible Applicants (Priority Given To):Employers seeking child care for their employees’ children.
- Government entities, nonprofit organizations, and other community partnerships seeking to expand child care capacity for the workforce.
- Combinations of these applicant types.
- Eligibility Requirements:Applicants must demonstrate that their facility or partner “provides, or intends to provide, publicly funded child care.”
- Applicants must participate, or intend to participate, in the state’s “tiered quality rating and improvement system.”
- Applicants must submit a “plan for ongoing sustainability to support its capacity expanding initiative.”
- Applicants must “identify the needs and gaps its initiative would address.”
- Grant Limits: “Not more than $750,000 shall be awarded to each grant recipient,” and the funds must be used solely for the described purposes.
- Additional Incentives: The Department of Development, in coordination with JobsOhio and the Department of Children and Youth, will create “additional incentives for new or existing businesses to expand child care capacity or child care support for the state’s workforce.”
3. Employer-Based Child Care Co-Design Learning Lab and Resources ($250,000 annually):
- Purpose: To “establish a cohort comprised of recipients of child care-related grants awarded by the Department, create an Employer-Based Child Care Co-Design Learning Lab, and develop tools and resources in order to train and support future child care grant applicants and other employers, government entities, or nonprofit organizations interested in expanding child care capacity.”
- Contracted Entity: The Department of Children and Youth will contract with an entity to carry out these activities.
- Responsibilities of the Contracted Entity:Coordinate education and knowledge-sharing among grant recipients and cohorts.
- Provide technical assistance to these entities.
- Collaborate with grant recipients to “collect and measure data, outcomes, and best practices.”
- Prepare a report compiling this data and submit it to the Department, Governor, and members of the General Assembly. The Department will assist in making the report publicly available online.
- Establish an “employer-based child care co-design learning lab program.”
- Design an “employer tool kit and other resources.”
- Employer-Based Child Care Co-Design Learning Lab Program:Aim: To assist employers (businesses, government entities, nonprofits) in:
- Learning how to form partnerships.
- Best funding practices, including tax credits, grants, employer contributions, etc., to create onsite or near-site child care.
- Identifying other innovative strategies to expand child care capacity.
- Priority: “rural and underserved areas of this state.”
- Structure: May be regionally based, offering “four to six months of intensive learning to employer participants.”
- Curriculum: Participants will learn to:
- Plan, organize, and find operations partners.
- Create long-term financial modeling and business plans.
- Partner with community stakeholders and organizations.
- Apply for grants, including those awarded by the Department.
- Emphasis: Importance of operations partners, provision of sample requests for proposals, and encouragement of engagement with community and regional workforce leadership.
- Employer Tool Kit and Other Resources:Designed in consultation with JobsOhio and the Department of Development.
- Aimed at educating employers on “issues impacting, and solutions improving, employee access to child care.”
- Topics to Include (but not limited to):“Strategies to expand child care capacity.”
- “Any information, competencies, best practices, and other resources identified in the co-design lab program.”
- “Procedures for applying for available child care-related federal, state, and local tax credits and creating child care-related flexible spending accounts or other employee benefit supports.”
- “Any other resources identified by the Department of Children and Youth, in consultation with JobsOhio and the Department of Development.”
- Distribution: The Department of Children and Youth will make the tool kit available on its website and distribute copies to relevant entities.
4. Appropriation and Implementation:
- Section 1 outlines the appropriation amounts for fiscal years 2026 and 2027.
- Section 3 grants the Director of Budget and Management the authority to establish necessary accounts and determine their maintenance.
- Expenditures are subject to the provisions of the main operating appropriations act of the 136th General Assembly.
Key Quotes:
- “The program’s aim shall be to increase the availability of child care in communities across Ohio and to aid in business growth and recruitment in this state.” (Regarding the Child Care Capacity Grants)
- “The program’s aim shall be twofold: to assist employers… in learning how to form partnerships and best fund… to create onsite or near-site child care spots or facilities and to identify other innovative strategies to expand child care capacity in their communities.” (Regarding the Employer-Based Child Care Co-Design Learning Lab Program)
- “The tool kit shall include, but not be limited to, all of the following topics: (a) Strategies to expand child care capacity; (b) Any information, competencies, best practices, and other resources identified in the co-design lab program…” (Regarding the Employer Tool Kit)
Conclusion:
House Bill No. 41 represents a significant proposed investment in expanding child care access in Ohio. It focuses on both direct funding for increasing physical capacity through grants to employers and community partners, and on building long-term capacity through the establishment of a learning lab and the development of resources. The emphasis on publicly funded child care and participation in the state’s quality rating system suggests a focus on ensuring quality alongside increased availability. The collaborative approach involving the Department of Children and Youth, the Department of Development, and JobsOhio highlights the intended link between child care access, workforce support, and economic development. The bill also demonstrates a commitment to learning and disseminating best practices through the learning lab and the required reporting.