Austin – Children’s advocates are celebrating the news that the final version of the 2026-2027 state budget released by the Texas Legislature includes a $100 million increase in funding for child care scholarships.
“We’re thrilled that the Legislature decided to help thousands of Texas parents get the high-quality child care they need so they can go to work,” said David Feigen, Director of Early Learning Policy for Texans Care for Children. “This investment will ensure more Texans are able to clock in to work each day and more kids have access to safe, nurturing child care during the critical early years of brain development. We are grateful to all the legislative leaders who came together to get the job done, including Lt. Governor Dan Patrick, Chair Joan Huffman, Speaker Dustin Burrows, Chair Greg Bonnen, and Chair Armando Walle.”
The scholarships have proven to be highly effective, but approximately 95,000 Texas families are on the waiting list for a scholarship, according to the latest state data. Children’s advocacy organizations, business leaders, health care groups, and others called on the Legislature to pass the $100 million investment in scholarships this session.
The final version of the budget, SB 1, includes $100 million over the biennium in unexpended TANF funds to support child care scholarships that are provided by the Texas Workforce Commission (TWC). Earlier in the legislative session, the $100 million was included in the supplemental budget bill for the current biennium, HB 500, rather than the budget bill for the upcoming biennium, and was funded by General Revenue rather than the unexpended TANF funds.
The budget bill will now go before the Texas House and Senate for a final vote before it is sent to the Governor for approval.
###
