Texas Votes to Cut Approximately 14,000 Child-Care Scholarship Seats

Texas is preparing to serve fewer children through its child-care scholarship program. The Texas Workforce Commission voted Tuesday to cut 9.5% of scholarships, approximately 14,000 seats. Some regions that must meet lower scholarship targets in 2027 will begin reductions in the fourth quarter of 2026, which begins in September. The scholarships use federal funding administered by the state to help low-income working families pay all or part of child-care tuition. States pay a share of program costs to receive federal funds and can choose to spend more.

The vote follows a one-time $100 million allocation by Texas lawmakers in 2025 that was intended to last through 2026 and 2027. The report says inflation depleted the money quickly. It also says more than 100,000 children are waiting for scholarships. Workforce development boards now must reduce the number of children they serve in 2027. The report describes child care as underfunded and says costs can be higher in larger cities even though families struggle nationwide. That contraction arrives as families struggle with child-care costs and shortages, while even high-quality centers operate on tight budgets, face high turnover and may close when costs exceed revenue.

The reductions will not land evenly. North Central Texas, including Dallas and Fort Worth, is the only region set to receive additional funding or growth; other regions were asked to remove 80 to 1,900 seats. Max Rombado of Texans Care for Children said the group is concerned that fewer families will have access while household prices remain high. State Rep. Armando Walle, who advocated for the $100 million expenditure, called the move unacceptable. The Texas Workforce Commission did not respond before publication. The next test is regional execution: Will the Texas Workforce Commission report how many fewer children each region serves under its lower 2027 targets?