Texas Daycare & Child Care Grants


A child care business requires a large amount of capital and the usual source of funding is a bank loan. A better alternative to a bank loan is to look for grants that are given by many organizations, both government and private. While a single grant may not be enough to start a child care business, it is possible for a child care center to obtain multiple grants to finance its operation. The best source of grants for a child care center is the local Child and Family Service Office which can help a child care center access several grant programs. In addition, local businesses can also be tapped to contribute money toward the establishment and maintenance of a child care center.

Applying for a grant in the State of Texas is not as difficult or daunting as it may seem. Most organizations that provide grants have ready application forms which are generally self-explanatory. Some grants are provided for child care centers that work with specific groups of children but it is not the general requirements for most of the child care grants. The basic requirements for availing of a grant include a business license to operate a child care center and a federal tax identification number.

Most grant applications require a grant proposal, which is simply a request for a grant that outlines the reasons why the child care center should be entitled to it. The grant proposal, therefore, must “sell” the business to the grant approval board by enumerating the purpose of the center and the population it will serve. The proposal must explain how the child care center can provide a positive impact on the community that it aims to serve. The proposal must also explain how the grant will be specifically used for.

Grants You May Apply for and Where You Should Go:

  1. Federal

    Federal grants are funded by the different agencies of the federal government. Typically, grants from a federal agency are funneled down to the communities through state agencies.

    U.S. Department of Agriculture – It has two agencies with start-up/expansion funding programs:

    • The Rural Housing Service (RHS) has facility funding available for non-profits or local governments that support child care facilities. (http://www.rurdev.usda.gov/rhs/index.html)
    • The Rural Business Cooperative Service has guaranteed loan programs for small business development available for profit child care programs. For eligibility or to apply for any of their programs, contact the state or local Rural Development Office, http://www.rurdev.usda.gov/recd.map.html

    U.S. Department of Health and Human Services (DHHS) – The agency has funding programs that support child care services. The Child Care Bureau has several funding programs for child care facilities. http://www.acf.hhs.gov/programs/ccb/

    U.S. Department of Housing and Urban Development (HUD) – It supports child care facilities near or within public housing, EZ/EC’s, or low-income areas through facility construction using block grants, programs, and networks. To determine eligibility or to apply for any of their programs, contact the state HUD office at http://portal.hud.gov/portal/page/portal/HUD/states

    U.S. Small Business Administration (SBA) – It provides small businesses financing options, technical assistance, and child care resource information. Check with your local SBA offices at http://www.sba.gov/localresources/index.html

    U.S. General Services Administration – It has programs that allow the donation of surplus federal personal property to state and local public agencies and qualifying nonprofits, which include child care centers. Please contact http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=10092&noc=T

    There are other federal programs that support child care such as:

    • The Child Care and Development Fund (CCDF) provide child care vouchers to subsidize the cost of care for low-income families as well as funds for state child care quality improvement initiatives. Nearly half of all children receiving CCDF subsidies are between the ages of five and 12. States are required to utilize at least 4 percent of their CCDF funds on quality activities and may also use discretionary funds earmarked by Congress for school-age care quality improvements and/or resource and referral activities. States may choose to use these funds to support initiatives to improve the quality and availability of school-age care, such as training programs or capacity-building grants for afterschool providers.
    • Temporary Assistance to Needy Families (TANF) funds, which provide financial support for low-income families, may also be used to support afterschool programs in ways consistent with one or more of the four purposes of the TANF program. States may either directly spend TANF funds on afterschool programs and initiatives, or states can transfer up to 30 percent of their federal TANF allocation to the CCDF. TANF funds transferred to CCDF are subject to all of the CCDF rules and requirements, and can be used to expand out-of-school time capacity-building and quality-enhancement efforts. Direct TANF spending can provide states with additional flexibility when it comes to afterschool care. For example, funds can support services for older youth and can support programs as well as individual subsidies for children.
    • The 21st Century Community Learning Centers (21CCLC) is the only federal funding source that exclusively supports afterschool programs. The purpose of 21CCLC is to support community learning centers that provide students with a broad array of academic enrichment services, including tutoring, homework help, and community service, as well as music, arts, sports, and cultural activities. When the program first began in 1998, the U.S. Department of Education made competitive awards directly to school districts. However, following the passage of the No Child Left Behind Act in 2002, 21CCLC was converted into a state formula grant program. As a result, the Department of Education awards grants to State Education Agencies (SEAs), which then manage statewide competitions to grant funds to eligible organizations.
    • Federal Food and Nutrition Programs may support snacks or meals for afterschool program participants. After school programs may be able to receive reimbursements from one of four different food and nutrition programs administered by the U.S. Department of Agriculture: the National School Lunch Program: Afternoon Snacks, the Child and Adults Care Food Program, the Summer Food Service Program and the School Breakfast Program. Reimbursement from these programs can be used to free up funds already spent on meals and snacks to support other program components.

  2. State Funds and Private Grants

    State agencies fund child care assistance under Family Child Care and Development Grants. Application for the child care grants and health grants can be made through www.governmentgrants.us. In addition to this government agency of the state, funding sources could be obtained from private sources. Private foundations that are based or operating in Texas as well as those operating nationwide, can also be tapped as source of funding for the establishment and operation of child care business, support for parents and families to avail of child care services, and the training of professionals in the field of child care.

    1. Grants for Families:
      1. College for All Texans Foundation

        Program Purpose

        The Texas Legislature established the TEXAS (Towards EXcellence, Access and Success) Grant to make sure that well-prepared high school graduates with financial need could go to college.

        Additional Information

        Your eligibility for this program is determined by the financial aid office at your college. Contact your college financial aid office for additional information on eligibility or availability of funds.

        Contact Information:

      2. TEXAS Grant

        Purpose of the TEXAS Grant Program

        The purpose of the program is to provide grant money to enable well-prepared eligible students to attend public and private nonprofit institutions of higher education in Texas. What are the Requirements to receive TEXAS Grant?

        To receive an initial award, a student must meet the following requirements:

        • Be a Texas Resident (parents of dependent students must be Texas residents as well.);
        • Enroll and remain enrolled by each tuition due date and each census date on a ¾ time (at least 9 semester hours) basis;
        • Not be convicted of a felony or crime involving a controlled substance, unless two years have passed since restitution to society has been paid.
        • In making initial awards, an award cannot be made to students whose Estimated Family Contribution (EFC) is greater than $4,000.

        Please note that the funding in this program is limited. Though you may meet eligibility requirements, your financial aid package may not include this grant if funds are not available. In making initial awards, priority is to be given to otherwise eligible students who have the greatest need.

        Contact Information:

        (956) 381-2501

      3. Texas Center for the Advancement of Literacy and Learning

        The Texas Center for the Advancement of Literacy and Learning provides technical assistance and evaluation for The First Lady’s Family Literacy Initiative for Texas grant program. The Initiative is a program of the Barbara Bush Texas Fund for Family Literacy. Since 1996, the Initiative has awarded grants totaling over $3 million to 129 family literacy programs around the state. Eligible applicants include schools, community colleges, universities, charter schools, prison programs, Head Start and Even Start programs, community-based organizations, and libraries. The money for this Initiative is raised at the Barbara Bush Foundation’s annual fundraisers, A Celebration of Reading, held in Houston and Dallas.

        Contact Information:


        The First Lady’s Family Literacy Initiative for Texas
        5 Post Oak Park
        4400 Post Oak Parkway, Suite 1400
        Houston, Texas 77027



    2. Grants for Women:
      1. Embrey Family Foundation

        Women’s and girls’ programs are now being funded through the Embrey Family Foundation Donor Advised Fund established at the Dallas Women’s Foundation.

        For further information, please contact Jackie Robertson via email, jrobertson@embreyfdn.org.

    3. Grants for Communities:
      1. Center for Community Support (CCS)

        The Center for Community Support (CCS) provides a broad range of no-cost grant-writing services for Texas communities. Support is available to pursue funding for programs designed to improve the quality of life and promote safe and healthy lifestyles among the citizens of the state. In an effort to expand existing state resources, emphasis is placed on attracting new funds from federal and private sources. CCS provides faculty and students at Texas A&M University with an opportunity to share ideas and strategies with community-based organizations to address health, public safety, and education problems through projects at the community level.

        Contact Information:

        Fax: (979) 845-0249
        Phone: (979) 458-3239
        E-Mail: ccs@ppri.tamu.edu

      2. Texas Community Development Block Grant Program


        The CDBG program is governed by of Title I of the Housing and Community Development Act of 1974 (the Act) and Federal regulations at 24 CFR 570, Subpart I . The introduction of the CDBG program in 1974 signaled a move away from individual categorized federal development assistance programs towards the block grant model, which gives communities broad latitude in using funds for a variety of development activities. The Omnibus Budget Reconciliation Act of 1981 authorized states to administer the CDBG programs.

        Eligible Applicants

        Cities under 50,000 in population and counties that have a non-metropolitan population under 200,000 and are not eligible for direct CDBG funding from HUD may apply for funding through any of TDRAs CDBG programs.

        Contact Information:


        Phone: 512-936-6701

        Toll Free: 800-544-2042

        Fax: 512-936-6776

      3. Dow Community Grants Program

        From helping children with their schoolwork to building a nesting site for black skimmers to expanding healthcare opportunities for area residents, Dow Texas Operations has supported improving the quality of life in the Brazosport area for more than 50 years. Through the volunteer work of its employees and retirees; a demonstrated commitment to wildlife preservation and the environment; and through its annual contributions and donations nearing $1.5 million per year, Texas Operations strives to be recognized as an excellent community partner and industrial neighbor.

        Contact Information:

      4. Texas Rural Communities, Inc. (TRC)

        Texas Rural Communities, Inc. (TRC) makes grants to fund community programs in rural areas that advance community development, including but not limited to environmental, economic or educational programs for the benefit of rural communities. TRC makes two kinds of grants, recognition grants of up to $5,000 and impact grants of $5,001 to $25,000. No funds from either type of grant may be used to finance building construction or personnel costs.

        Recognition grants may be awarded to new or existing programs that are making or have the potential to make a significant difference in the communities they serve. Impact grants may be awarded to programs that also demonstrate innovation or have the potential to serve as model programs for other communities.


        Eligibility for grants from TRC is limited to Non-Profit Community Based Organizations in rural communities that are not affiliated with governmental or quasi-governmental organization(s). A rural area includes all territory that is not within the extra-territorial jurisdiction (ETJ) of any city having a population of one hundred thousand or more. Grant requests may be for new or existing programs, but the applicant organization must have been in existence for at least one year and must have an established Board of Directors, current budget, balance sheet and income/expense statement.

        Contact Information:

      5. Bank of America Foundation

        The Bank of America Foundation operates with one of the largest philanthropic budgets of any financial institution in the United States. In 2001 it contributed more than $85 million in cash to nonprofit organizations across the country. It concentrates funding on pre-K through grade 12 educations and supports programs in early childhood development, economic and financial education, and teacher development. Community revitalization is another focus for funding nonprofit organizations.

        Contact Information:

    4. Grants for Minorities:

      There are many types of minority grants that benefit minority groups in the United States. These government grants span different work fields, businesses, research and educational initiatives. By simply belonging to a certain racial group, you could qualify for various types of grants. You must, however, meet certain criteria to be eligible. This criterion is different depending on the racial group that you pertain to.

      Website: http://governmentgrant.com/minority-grants

      1. Rockefeller Brothers Fund (RBF)

        RBF is dedicated to promoting the well-being of all people in the transition to global interdependence. One of the goals of the fund’s Education Program is to promote universal, quality education and care for pre-K children by using a comprehensive approach to their development, including concerns for health, safety, and readiness to learn. Strategies include supporting development of public policies that promote universal access to early childhood programs, and advancing the professional development of early educators.

        Contact Information:


Texas Daycare Training and Education