The Need
The COVID-19 pandemic highlighted the critical role that child care serves in our economy. Funds were needed to both stabilize and grow the early childhood sector, ensuring families had access to care, parents could return to work and businesses stayed open.
The Strategy
Any child care provider that became licensed or completed the process to become qualified exempt after March 11, 2021, was eligible to receive nine months of New Provider Success Grant payments. This included child care centers, family child care homes and school-age child care.
Payments mirrored the Child Care Stabilization Grants program and could be used for operational expenses. The goal was to see these cost savings passed on as financial relief for families. Grant funds could also be used to support the recruitment of new qualified staff and retention of current staff.
All eligible programs were able to receive grants.
Key Outcomes and Learnings
Impact
As of June 2023, 275 providers received New Provider Success Grants totaling $11,406,591. Nearly 90% of providers who applied received Stabilization and New Provider Success Grants. Provider closure rates reduced to pre-pandemic levels. A majority of providers maintained or increased starting wages for staff and provided tuition relief, saving families an average of about $475 after six months.
Providers received bonus payments for:
- Serving infants and toddlers
- Serving children with disabilities
- Serving children outside of regular business hours
Learning
Some providers chose not to receive the grants because:
- They did not want to accept government funds due to distrust or other reasons.
- They remain closed or have not reopened since the start of the pandemic.
- They closed due to low enrollment or licensing issues, such as moving to a new location.
- They only operate during the summer.
- Award amounts are determined by Colorado Shines ratings. Providers going through the rating process may receive a grant based on a current, lower rating, rather than the rating they expect to receive at the end of the rating process.
- They may also require district approval to accept funds, particularly for multisite operations.
Funding
Amount: $11,406,591
Source: Coronavirus Response and Relief Supplemental Appropriations (CRRSA)
Expiration: September 30, 2023
Next Steps
CDEC will share stories from site visits via social media, newsletters and other platforms to promote the success of this grant program.
An application for existing grantees to receive an additional payment opened March 15, 2024, and closes on April 12, 2024.
Evidence Brief
"Child Care Stabilization and New Provider Success Grants, Workforce Sustainability Grants, and Stabilization Grant Family Financial Relief"
Butler Institute for Families, University of Denver
(September 2023)
