During a Wednesday hearing of the House Trade, Workforce and Economic Development Committee, the Texas Workforce Commission (TWC) announced a reduced statewide target for its child‑care subsidy program. The new 2027 target of 132,689 children per day is about 9.6% lower than the original 2026 target of 146,736.
Regional impacts vary
While most of the state’s 28 workforce regions saw lower numbers, North Central Texas – including Collin and Denton counties – is the only area with an increase, up 7.1%. Dallas County’s target fell 12.2%, from 13,120 to 11,516 children per day, and Tarrant County’s target dropped 4.3%.
Funding and cost pressures
TWC has already allocated an additional $29.7 million supplemental funding, but officials said the cost of child care continues to rise and is expected to keep climbing. The agency estimates that even with the extra money, it can support fewer children in 2027 than originally projected.
Lawmakers seek clarification
Rep. Angie Chen Button, R‑Richardson, chair of the committee, asked TWC to review the figures and provide an official analysis of the Dallas County shortfall. TWC Executive Director Steve Pier agreed to do so but offered no immediate explanation.
Stakeholder concerns
Max Rombado, director of early‑learning policy at Texans Care for Children, warned that reduced scholarship capacity will force families to make “difficult decisions like not going to work,” depriving children of high‑quality, safe environments. Tim Kaminski, president of the Texas Licensed Child Care Association, described child care as “workforce infrastructure,” noting that higher labor, insurance and regulatory costs are squeezing providers.
Michael Wood, vice president of education and workforce for the Dallas Regional Chamber, called child care the “workforce behind the workforce,” emphasizing that unreliable, unaffordable care keeps parents from fully participating in the labor market. He cited local employers such as Parkland Health, Children’s Health and Richardson ISD, which have begun offering child‑care benefits.
Economic stakes
A 2021 U.S. Chamber of Commerce Foundation study estimated Texas loses $9.39 billion annually due to child‑care challenges, including $7.59 billion in employer costs from absenteeism and turnover and $1.8 billion in lost tax revenue. Nearly three‑quarters of surveyed parents reported missing work because of child‑care issues.
Rombado warned that further reductions in access will only increase these opportunity costs, pushing more parents out of the workforce.
Next steps
The committee hearing marks the first phase of information‑gathering ahead of the 2027 legislative session. Lawmakers will continue to explore child‑care access and its impact on workforce participation as part of the committee’s interim charge.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
