Texas is scaling back a program many working families rely on to afford child care. Under a vote by the Texas Workforce Commission, the state will shrink its child care scholarship program by 9.5%, removing roughly 14,000 spots for children, The Texas Tribune reported.
Here's what to know
The scholarships are part of a federally funded, state-administrated program that helps working families afford child care. As The Tribune reported, the state had been counting on a one-time $100 million investment approved in 2025 to keep the program going through 2026 and 2027.
However, rising costs caused the program to run out of money sooner than expected.
Even before the cuts, Texas already had more than 100,000 children waiting for scholarships. Under the new plan, the statewide target will drop from 146,736 subsidized seats per day in 2026 to 132,689 in 2027.
The impact will not be evenly distributed. Meeting documents show North Central Texas, which includes Dallas and Fort Worth, is the only region set to gain funding. Other areas have been told to reduce anywhere from 80 to nearly 1,900 seats.
"At a time when families are dealing with high prices on everything from groceries to child care, we're very concerned that Texas is cutting back on the number of families who will have access to child care," said Max Rombado, director of early learning policy at Texans Care for Children.
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Why is this concerning?
The program is meant to help families who cannot cover the full cost of child care on their own, which in turn helps operators stay open, as well. For families who qualify, the scholarships pay all or part of the child care costs, making it easier for parents to provide for their families.
When fewer scholarships are available, the burden often falls hardest on families who already struggle to pay for gas, groceries, and health care expenses.
The reductions will be rolled out over approximately 18 months. In many regions, children already receiving scholarships will phase out naturally as they age out, move away, or return to in-home care. But instead of those openings going to the next family on the list, many children on waitlists will remain there until regions fall below their new targets.
Some lawmakers have spoken out against the cuts.
"It's unacceptable," said Armando Walle, a Houston-based state representative who pushed for the 2025 funding boost, according to The Tribune.
What can be done?
Advocates and lawmakers say Texas could still choose a more durable funding path. Some states, including Florida and New Mexico, have invested more heavily in child care and created more reliable ways to support these programs over time.
Walle said Texas should consider doing the same, potentially by tapping the state's rainy day fund or building child care into future budget planning. He argued that investing in child care is just as important as funding other core services.
"They'd rather be working than having to depend on the government," Walle said of families caught between rising costs and shrinking support. "This is a safety net for these families."
Rombado took the argument one step further, saying that the cuts will hurt the state economy.
For the families in need of child care support now, immediate options remain limited. Those on the waiting list for child care scholarships likely will continue to face higher out-of-pocket costs as they continue to wait.
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