Child care worker Marci Then helps her daughter, Mila, 4, put away toys to get ready for circle time at the Little Learners Academy in Smithfield, R.I. A state program for child care workers subsidizes Mila’s tuition. A handful of other states have similar programs, which advocates say has beneficial ripple effects through the state economy. (Photo by Elaine S. Povich/Stateline)
As the state seeks solutions for child care shortages, Gov. Kim Reynolds announced Monday that $14 million in grants awarded to Iowa businesses and schools will create 874 new child care slots across the state.
The Child Care Business Incentive (CCBI) grants were awarded to 13 employers, with the funds designated for projects to build and expand child care and daycare centers in Iowa communities. Nine of the award recipients were new winners of the grants, while four were businesses that had received the grant in 2022 and had sought additional funding.
The new grants include $1.7 million awarded to the Colfax Economic Development Corporation for construction of a new child care center in Colfax; $1.4 million for renovations to the Glenwood Community School District Central Office to increase their child care capacity; and nearly $1.5 million for St. Anthony’s Regional Hospital and Nursing Home to construct an onsite childcare facility in Carroll.
According to a news release, projects in high-demand areas were given priority for the grants — as were projects that would increase child care slots across multiple age groups and provide onsite child care centers at places of employment. Beth Townsend, executive director of Iowa Workforce Development, said that the grants are an example of how employers and communities can pursue “innovative ideas to solving local child care issues.”
In addition to the CCBI grants, the state has looked at other means to improve Iowa’s child care shortages. A November report from the Common Sense Institute Iowa found the state’s “Childcare Solutions Fund” pilot program — a program providing communities with funding to raise child care provider wages — led to more child care workers joining the labor force as well as increasing available child care slots in participating communities.
Reynolds also launched an online tool, iachildcareconnect.org, in August 2024 to assist parents with finding child care providers and resources throughout the state.
The governor said the grants are another step in helping Iowa families access needed child care within their communities.
“We cannot overstate the importance of child care to Iowa’s workforce and its future. Our strategy for retaining the best workers must include creative ways to meet their child care needs,” Reynolds said in a written statement. “Today’s awards represent Iowa’s commitment to that strategy, and I’m excited to see what these organizations do to provide solutions for their individual communities.”