One of the most pressing issues facing Iowa's workforce is the ability to find affordable, accessible child care. Not only does this impact individual Iowans, but it also impacts the ability for employers to hire and retain workers. In response to this challenge, Governor Reynolds launched the Child Care Taskforce to develop a comprehensive strategy to address the child care shortage and barriers to work in Iowa.
In the fall of 2021, Governor Reynolds, along with stakeholders, released the recommendations from the report. Based on the recommendations, Governor Reynolds is implementing a childcare management system, creating additional funding opportunities, and introducing new initiatives to support working families and Iowa’s child care system. Check out some of the great funding programs that IWD has supported that are creating and expanding new child care opportunities across Iowa.
The Child Care Business Incentive Grant Program, first established in 2022, is targeted at helping employers offer or expand child care options as a benefit to their employees. Funds have supported local infrastructure investments and arrangements between employers and child care facilities to expand child care options.
In November 2024, Governor Reynolds announced a re-opening of the grant to help Iowa businesses further expand child care options for their employees.
Click on the plus signs (+) below to expand the sections and learn more about the new funding opportunity.
New Funding Opportunity: Child Care Business Incentive Grant (2024)
The grant is being re-opened for the following:
Current awardees of the Child Care Business Incentive Grant 1.0 (first awarded in 2022).All previous awardees with active projects will receive an Additional Fund Request form and instructions should they wish to apply for additional funding to support their projects.
New applicants for a Child Care Business Incentive Grant 2.0. This opportunity is open to employers who were not previously awarded grant funds. A new notice of funding document and application process is now available on iowagrants.gov.
Applications for the new grant opportunity are now open at iowagrants.gov and will be accepted through December 23, 2024, at 2:00 p.m.
The 2.0 grant opportunity is open to any Iowa business or entity that pays W-2 wages to a minimum of 75 full-time employees and is not in the business of providing child care. Awards are administered as a reimbursement only and require a 50/50 private match for all grant funds provided.
Grant funds provided to employers can be used to support the following projects:
The expansion or new construction of child care and/or daycare facilities for employees, with the employer as the provider or in partnership with a local child care provider.
Priority funding will be given to applicants who are:
Located in an Iowa county classified as a high-demand area for child care (view map).
Counties with a greater demand for child care will receive additional priority. Applicants should also take into account the child care age groups based on the supply/demand gaps within the community.
Planning to utilize funding to increase the capacity of the child care center by creating additional child care slots across multiple age groups.
Applicants requesting additional funding to maintain current slot capacities will not receive priority.
Planning to build onsite child care centers.
Not recipients of the previous Child Care Challenge or Investing in Iowa’s Child Care (IICC) funding from either 2021 or 2022.
Note: This does not exclude applicants who may have partnered with an existing child care facility that may have already received a Child Care Challenge or Investing in Iowa’s Child Care funding, provided there is direct linkage between providing additional slots to the employer’s employees (additional slots must be new and not previously counted for in prior grant applications).
Previous Child Care Business Incentive Awards (2022-2023)
The initial Child Care Business Incentive Grant Program, in conjunction with Iowa Workforce Development (IWD) and the Iowa Department of Health and Human Services (HHS), supported local infrastructure investments to build or expand child care capacity, or arrangements between employers and child care facilities to expand and reserve child care slots.
Second Round of Child Care Business Incentive Grant Awards announced on January 9, 2023.
The Child Care Challenge Fund supports regional and community projects to establish local child care facilities and increase the availability of quality, affordable child care for working Iowans. Child Care Challenge grants through IWD support community projects to establish local child care facilities, while HHS child care grants provide support for equipment, personnel, training, and supplies for new or ongoing child care facilities.
Most Recent Round of Child Care Challenge Funding Awards (announced on Jan. 12, 2022)
