Notice for Closed Child Care Providers: Stabilization Grants

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Notice for Closed Child Care Providers: Stabilization Grants


The Texas Workforce Commission (TWC) has implemented several policies to address COVID-19 impacts on child care, including policies to support child care providers who have temporarily closed due to COVID-19.   

TWC’s actions to continue paying closed child care providers were intended to address the economic hardship that many providers could face as a result of COVID-19 and to help defray ongoing costs. TWC originally structured these payments based on the number of active referrals in place at the time the provider closed. TWC’s approval of this policy on March 17th noted that TWC would continue to monitor the situation and would make future determinations on the policy. Based on continued analysis, TWC identified an opportunity to revise the policy to more evenly assist closed providers.

New Policy:

Effective June 1, 2020, TWC will implement new Stabilization Grants for closed providers participating in the subsidy program. These Stabilization Grants will replace the current payments. More details on this Commission action are available here.


The Stabilization Grants are designed to help defray some expenses being incurred by closed providers of varying size.

  • Grants will be based on the provider’s licensed capacity and the 75th percentile of the average local market rate for child care.
  • Texas Rising Star certified providers will receive a 5% enhanced grant amount.
  • Stabilization Grants will not exceed $10,000 (prior to the 5% enhancement for TRS providers) and will be paid to eligible providers every month they cannot open for a period to be evaluated by the Commission.
  • Stabilization Grants will be paid to eligible providers every month they cannot open for a period to be evaluated by the Commission.


  • Providers will be required to apply for the Small Business Association’s Paycheck Protection Program, and if funded, will no longer be eligible for the Stabilization Grant.
  • These grants are only for providers who have ongoing fixed costs that they need help to pay. For example, child care providers who have donated space and no ongoing fixed costs (such as those operating an after-school program in a school) should not apply.

Any provider that chooses to re-open can revert to the payment structure that is in place for open providers – which is based on paying a provider for all active referrals, plus a 25% enhanced reimbursement rate. 

Examples of Monthly Grant by Board Area and Licensed Capacity

TWC has calculated several examples of payment rates by Board Area. The amount each provider receives is based on their licensed capacity. These examples are intended to assist child care providers to understand how this policy change may impact the amount of funds they receive. Additional information on eligibility for Stabilization Grants and how to apply will be published in the coming days. CORRECTION: In the original GovDelivery message, the column headers for licensed/registered homes were reversed.

Board Area

Licensed Centers



Licensed Centers



Licensed/ Registered Homes



Licensed/ Registered Homes













Brazos Valley





Cameron County





Capital Area





Central Texas





Coastal Bend





Concho Valley










Deep East Texas





East Texas





Golden Crescent





Gulf Coast





Heart of Texas





Lower Rio Grande Valley





Middle Rio Grande





North Central





North East Texas





North Texas










Permian Basin





Rural Capital





South Plains





South Texas





Southeast Texas















West Central





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