When pharmacy owner Abe Funk in Cape Girardeau realized his employees were leaving because they could not afford reliable childcare, he opened a small daycare in 2023. The move helped his business retain staff, but Funk still saw a gap for workers who earned too much for public subsidies yet could not cover the full cost of care.
State program fills the gap
In 2025 Missouri launched Child Care Works, a state‑run initiative that matches employer contributions toward employee childcare. Funk signed up, adding the state’s assistance to the benefit his pharmacy already offered. The program lets employers share the expense without having to run a daycare themselves.
Missouri has now received $1.46 million from the federal Rural Health Transformation Fund to expand Child Care Works for rural health employers. Of that amount, about $750,000 is earmarked for direct childcare costs, enough to cover roughly 250 children, according to Kids Win Missouri.
Impact on rural health hubs
Brian Schmidt, executive director of Kids Win Missouri, reports that 32 employers are already providing childcare benefits through the program, with more in the pipeline. “Doing nothing has a cost,” Schmidt said, noting that turnover and lost productivity hurt both businesses and local economies.
The funding also supports community‑planning efforts aimed at establishing eight rural health hubs across the state within the next year. These hubs will bring together parents, childcare providers, schools, and health facilities to map local needs and develop sustainable solutions.
Economic stakes
A University of Missouri Extension analysis found that rural counties average just 2.9 childcare slots for every ten children under five, compared with 5.1 slots in metropolitan areas. Since early 2025, the state has lost at least 94 childcare facilities, contributing to an estimated $1.1 billion in annual economic losses from reduced productivity, staff turnover, and lower tax revenue.
Child Care Aware of America places the average full‑time childcare price in Missouri at $1,036 per month—about 15 % of the median household income for families with children under six, and 36 % for single‑parent households. By sharing costs, employers can help families avoid these burdens while preserving a stable workforce.
Local voices
Patty Cantrell, project development director at New Growth in El Dorado Springs, has been helping rural employers adopt the benefit. She notes that families often travel long distances to find care, and providers struggle to stay open when enrollment is low. “In rural areas, it’s a big struggle with people having to go long distances because they’re trying to patch together care,” Cantrell said.
New Growth has worked with four rural counties to develop childcare action plans, and seven employers—including a manufacturer, a food‑truck operation, and several childcare businesses—have already signed up for Child Care Works.
Looking ahead
Schmidt believes the program will save money for participating employers. “Often a lot of employers will be able to save some money because they are offering the childcare benefit, making it easier for their workforce to access childcare,” he said.
As Missouri continues to grapple with rural childcare deserts, the partnership between state, employers, and families aims to turn a pressing challenge into an opportunity for stronger communities and healthier local economies.
Original reporting: The Beacon (Kansas City) — read the source article.
