A report found that a state pilot program increased the availability of child care in participating communities. (Photo by Rebecca Rivas/Missouri Independent)
A report published Tuesday found that Iowa’s “Childcare Solutions Fund” pilot program has increased the availability of child care resources by expanding the child care workforce.
The Common Sense Institute Iowa, a nonpartisan research group focused on economic issues, released the report titled “Iowa Childcare Solutions Fund: A Model for Closing the Childcare Gap” in collaboration with the Iowa Women’s Leadership Project. The report studied the impact of the CSF pilot program, launched in November 2023, that provided participating communities with funding to increase child care provider wages.
The pilot program was built on $3 million from the American Rescue Plan Act (ARPA), with the Iowa Department of Health and Human Services matching $2 for every $1 raised from local businesses, non-profits, and individuals.
Five counties — Allamakee, Cerro Gordo, Hamilton, Howard and Mitchell counties — participated, as did the cities of Dubuque, Mount Vernon and Lisbon. Three other communities participated, but did not report back to the state with data needed to be included, according to the report.
The report found that communities involved in the pilot program saw an expansion in both child care workers joining the labor force, as well as an increase in available child care slots.
From those seven communities, a total of 233 child care workers were added or retained at 105 local child care providers, the report found. Additionally, 275 new child care slots were added in these Iowa localities — an estimated 21.5 new child care slots per 1,000 children in the state.
Sheri Penny, employment engagement director at the Iowa Women’s Foundation, said in a news release the report shows that the pilot program is a successful step toward addressing child care shortages in the state.
“The data shows us that our efforts are making a positive impact, helping more women access the childcare they need to stay in the workforce and improve their lives economically,” Penny said in a statement. “This research reinforces the importance of expanding these solutions statewide to continue driving real change for women and families across Iowa.”
Based on the data from the pilot, CSI estimated that a statewide version of the program would add nearly 11,000 child care slots around the state.
Additionally, the group said a statewide version of the program would allow for more women — an estimated 5,000 — to enter the workforce who are currently not employed because of child care needs. The report also estimated the state would see an increased $13 billion and rise in statewide personal income by $6.1 billion over 10 years if the program were implemented statewide.
“Common Sense Institute’s analysis found the CSF pilot program had its intended effect,” Ben Murrey, director of policy and research at CSI Iowa, said in a news release. “The program allowed participating communities to open more quality affordable child care slots, allowing more parents to enter the workforce. If expanded across the state, this program could have a substantial impact on Iowa’s economy.”
Of the seven localities that shared their data, more than $2.88 million in HHS funds went to the pilot communities, in addition to $1.4 million raised for the HHS match, an additional $1 million raised since meeting the requirements and $2.38 million in expected private investments for the upcoming year.
The CSF pilot program is not the only initiative being pursued by the state to increase child care availability in Iowa. In August, Gov. Kim Reynolds announced the launch of a new online tool, iachildcareconnect.org, to help connect parents seeking child care assistance with resources in the state.
State lawmakers also passed a measure in 2024, signed by Reynolds, to raise the rates for child care providers through the state assistance program and remove the income limit for child care assistance for workers in the industry in efforts to address workforce shortages. Another bill that failed to advance would have allowed workers under age 18 at child care facilities to perform certain duties without adult supervision, like assisting with five-minute breaks and naptimes, in an effort to alleviate shortages.