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Gov. Reynolds awards $26.6M in Child Care Business Incentive Grants

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September 13th, 2022 by Ric Hanson

DES MOINES, IOWA – Iowa Governor Kim Reynolds today (Tuesday) awarded $26.6 million in grant funding to 23 projects intended to help businesses jumpstart new child care opportunities and make it easier for Iowans to find child care options through their employer. The Child Care Business Incentive Grant is awarding 19 projects with $25.9 million to address infrastructure projects, while four projects will receive $603,433 to support agreements between businesses and local centers that create new child care slots. In total, today’s funding from Iowa Workforce Development (IWD) and the Iowa Department of Health and Human Services (HHS) will involve 67 employers and is expected to create nearly 1,786 child care slots.

In this area the Guthrie Center Area Development Corporation in Guthrie Center received an Infrastructure award amounting to $1.5-million for the “Charging into the Future” program. Officials say “With enough licensed child care spaces for just 16% of children in Guthrie Center, several organizations and employers in Guthrie Center have begun the process of helping our existing child care facility, Little Charger Early Learning Center, construct a new child care center to add 37 new slots to the community. The Guthrie Center Area Development Corporation is assisting with the project by facilitating dialogues with local business owners and residents to raise the $1.74M needed for the construction of the new center. One of Guthrie Center’s largest employers, the Guthrie Center Community School District, as well as the City of Guthrie Center, have led the efforts in providing funding and purchasing additional land to help secure child care for their employees.” 

And, New Hope Village Inc. in Carroll (25 new slots) is receiving a $17,500 Infrastructure award for the New Hope Child Care Project. New Hope, a residential and employment provider for people with Intellectual and developmental disabilities in western Iowa intends to utilize its existing assets and business experience to create a child care center for New Hope employees and, eventually, the Carroll community. The goals of the project, the “Growing Hope” childcare center, are to (1) provide accessible and affordable childcare to current New Hope employees and (2) provide an employment incentive for potential new employees to join the New Hope workforce. The project intends to serve at least 15-25 families primarily working evening shift hours 2-10 pm with emphasis on learning activities and serving children with special needs in the first year of operation.

View a list of today’s awardees here. The Child Care Business Incentive Grant was established this year to enable businesses and employer consortiums to build on-site child care centers or partner with local child care providers to increase new child care slots for employees. This grant program advances one of the top recommendations of the Child Care Task Force – to incentivize business engagement in child care.

Today’s awards continue the state’s commitment to funding meaningful child care projects across the state. To build on these successes, IWD and HHS are announcing a second round of funding for the Child Care Business Incentive slots grant. This new opportunity seeks to provide additional flexibility in the ways employers can partner with local child care providers to meet the needs of their employees. Grants will support projects that increase licensed or operational child care slots, add slots to meet new time/day requirements of employees, or fill currently licensed (but unfilled) slots for the benefit of employees. 

  • Applications are now being accepted at IowaGrants.gov. Applications are due by 11:59 a.m. on October 17, 2022. 
  • Click here for Notice of Funding and Application Information: Link 

Including today’s announcement, the state of Iowa has awarded 191 projects with approximately $75.6 million in grant funding to help create over 10,700 new child care slots.