Grants for Daycare Providers
Federal childcare grants support licensed daycare centers, family childcare providers, and early learning programs through CCDF block grants, Head Start funding, quality improvement initiatives, facility expansion, and workforce development. Access verified funding sources for childcare subsidy programs, pre-kindergarten services, and infant-toddler care.
Daycare Provider Grant Categories
Child Care Development Fund (CCDF)
The primary federal funding stream supporting childcare providers and helping low-income families afford quality childcare. CCDF block grants flow to state, territory, and tribal agencies that contract with licensed providers to serve eligible families.
- Childcare Subsidies: $8 billion+ annually (FY 2024) supporting providers serving low-income working families through voucher systems
- Provider Types: Licensed centers, family childcare homes, group homes, preschools, school-age programs, informal care (under state rules)
- Payment Structure: Providers receive direct reimbursement for serving subsidy-eligible children based on state-set rates
- Quality Requirements: Meeting licensing standards, staff training, health and safety compliance, background checks
- Rate Increases: CCDF Reauthorization 2024 encourages states to increase provider payment rates to 75th percentile of market survey
Access: Providers become CCDF-eligible by obtaining state childcare license, contracting with state/county childcare agencies, and meeting quality standards.
Head Start & Early Head Start
Comprehensive early childhood development programs serving children from birth to age 5 from low-income families. Provides center-based care, home-based services, and family childcare partnerships.
- Head Start: $11.3 billion (FY 2024) serving 800,000+ children ages 3-5 through comprehensive early learning programs
- Early Head Start: Serving infants and toddlers (birth-3) and pregnant women through intensive early intervention
- Grant Types: Direct program grants (competitive 5-year cycles), partnership grants (with childcare providers), training/technical assistance
- Services Required: Early learning, health screenings, mental health services, nutrition, parent engagement, family support
- Partnership Model: Head Start agencies partner with licensed childcare centers and family childcare homes to expand capacity
Funding: Head Start grants are awarded competitively every 5 years. Providers can also partner with existing Head Start grantees to serve enrolled children.
CCDF Quality Improvement Grants
States must spend at least 9% of CCDF funds on quality improvement activities. Providers can access professional development, accreditation support, curriculum enhancement, and facility improvements.
- Professional Development: Scholarships for CDA credentials, associate/bachelor's degrees in early childhood education, specialized training
- Accreditation Support: Funding for NAEYC, NAFCC, or state QRIS (Quality Rating and Improvement System) accreditation costs
- Curriculum & Materials: Grants for evidence-based curriculum, educational materials, STEAM resources, literacy programs
- Facility Improvements: Playground upgrades, safety equipment, learning environment enhancements, technology integration
- Infant-Toddler Expansion: Bonus funding for providers creating new infant-toddler slots (highest need, lowest supply)
Application: Apply through state childcare resource and referral agencies or state early childhood offices for quality improvement grants.
Preschool Development & Pre-K Expansion
Federal programs supporting states and communities to expand access to high-quality preschool for 3- and 4-year-olds, especially in underserved areas.
- Preschool Development Grants (PDG B-5): Multi-year grants to states for mixed-delivery preschool systems (centers, family childcare, schools)
- Pre-K Expansion: Competitive grants to school districts and community organizations expanding pre-kindergarten access
- Universal Pre-K Initiatives: State programs (funded partly by federal sources) establishing free pre-K for all 4-year-olds
- Provider Partnerships: School districts contracting with licensed childcare centers and family providers to deliver pre-K programs
- Full-Day Full-Year: Funding extending school-day pre-K programs to full-day schedules matching working family needs
Opportunity: Licensed centers can partner with school districts to become pre-K sites, receiving public funding while maintaining childcare operations.
Facility Construction & Renovation Grants
Competitive grants supporting childcare facility construction, major renovations, expansion projects, and infrastructure improvements addressing the childcare supply shortage.
- Community Development Block Grants (CDBG): Local governments allocate CDBG funds for childcare facility construction in low-income areas
- USDA Rural Development: Community Facilities Direct Loans and Grants for rural childcare center construction ($400M program)
- State Capital Funds: Many states offer construction/renovation grants for providers expanding capacity, especially infant-toddler slots
- Facility Improvement Grants: Smaller grants ($5K-$50K) for playground upgrades, kitchen renovations, accessibility improvements, security systems
- Tribal Childcare Construction: Bureau of Indian Affairs and CCDF Tribal Grants support childcare facility construction on tribal lands
Priority: Infant-toddler facility expansion receives preference due to severe shortage. Rural and tribal areas also prioritized.
Workforce Development & Training Grants
Funding to address the childcare workforce crisis through scholarships, wage supplements, recruitment bonuses, retention incentives, and professional development.
- TEACH Scholarships: Teacher Education and Compensation Helps program offering scholarships and bonuses for early childhood credentials
- Apprenticeship Programs: DOL-funded registered apprenticeships for childcare teachers earning CDA or AA degrees while working
- Workforce Stabilization: CCDF funds supporting wage supplements, retention bonuses, and health benefits for childcare workers
- CDA Scholarships: Council for Professional Recognition scholarships covering Child Development Associate credential costs
- T.E.A.C.H. Early Childhood: National scholarship program (state-specific) paying 70-90% of college tuition for early educators
Crisis Response: Workforce grants address teacher shortages by making early childhood education affordable while improving compensation.
Who Can Apply?
Licensed Childcare Centers
State-licensed daycare centers, preschools, early learning centers, and child development programs serving infants through school-age children. Must maintain licensing compliance, health and safety standards, and staff qualifications.
Family Childcare Providers
Licensed family childcare homes (FCC) and group family childcare homes operating out of residential settings. Must meet state licensing requirements, maximum capacity limits, training hours, and background check clearances.
Nonprofit Organizations
501(c)(3) organizations operating childcare programs, early learning centers, Head Start programs, community-based preschools, and faith-based childcare ministries. Must provide childcare as primary or substantial mission activity.
Government Agencies
State early childhood agencies, county childcare departments, municipal parks and recreation departments, school districts operating pre-K programs, and tribal governments providing childcare services on reservations.
Head Start Grantees
Existing Head Start and Early Head Start grantees seeking continuation funding, expansion grants, partnership funding, or quality improvement support. Must demonstrate program performance and comprehensive service delivery.
Childcare Networks
Resource and referral agencies, childcare consortiums, provider networks, early childhood professional associations, and collaborative partnerships addressing regional childcare access gaps.
Common Requirements
- State Licensing: Valid childcare license in good standing (center-based or family childcare)
- Health & Safety: Compliance with state health and safety requirements, fire codes, building inspections, sanitation standards
- Background Checks: All staff and household members (FCC) cleared through comprehensive background screening
- Staff Qualifications: Minimum education credentials (CDA, associate, bachelor's degrees depending on program and role)
- Ongoing Training: Annual professional development hours (15-24 hours/year typical state requirement)
- Child-Staff Ratios: Meeting state-mandated ratios (example: 3:1 infants, 4:1 toddlers, 10:1 preschool)
- Financial Stability: For larger grants: demonstrated financial management capacity, accounting systems, audit capability
- Non-Discrimination: Compliance with civil rights laws, ADA accessibility, and equal opportunity policies
How to Access Funding
Get Licensed & Credentialed
Obtain or maintain state childcare license. Ensure staff have required credentials (CDA minimum, degrees preferred). Complete background checks for all staff and household members (family childcare).
Contact State Childcare Agency
Register with your state's CCDF lead agency (often Department of Human Services or Early Childhood Office). Learn about subsidy programs, quality initiatives, and provider support services available.
Join CCDF Subsidy Network
Contract with state/county childcare agencies to accept childcare subsidies. Agree to serve income-eligible families and accept state reimbursement rates. This provides stable enrollment and payment stream.
Apply for Quality Improvement
Access QRIS participation bonuses, accreditation support, curriculum grants, facility improvement funds, and professional development scholarships through state early childhood resource and referral agencies.
Explore Expansion Funding
For center expansion or construction: research Head Start competition cycles, USDA Rural Development facility grants, CDBG funding through local governments, and state capital improvement programs.
Frequently Asked Questions
Can family childcare providers (home-based) get grants, or are they only for centers?
Yes! Family childcare homes are eligible for most childcare grants. Licensed family childcare (FCC) providers can:
- Accept CCDF subsidies: Contract with state agencies to serve subsidy-eligible families (largest funding source)
- Access quality grants: Professional development scholarships, accreditation support (NAFCC), curriculum/materials grants
- Partner with Head Start: Head Start agencies partner with FCC homes to provide Early Head Start services
- Facility improvement: Smaller grants ($2K-$10K) for playground equipment, learning materials, safety upgrades
- Workforce funding: CDA scholarships, T.E.A.C.H. programs, apprenticeships available to FCC providers
Reality: FCC providers have the same access to CCDF subsidies and quality improvement funding as centers. Construction/expansion grants are typically center-focused, but FCC homes can access equipment and improvement grants through state programs.
How does CCDF funding work? Do I apply for a grant or get paid per child?
CCDF works as a payment system, not a traditional grant application. Here's how it works:
- Contract with State: You become an approved CCDF provider by signing contract agreeing to serve subsidy-eligible families
- Families Apply: Low-income working families apply to state/county for childcare assistance and receive vouchers/certificates
- Enrollment: Families choose your childcare program and use their subsidy to pay tuition
- You Get Paid: State reimburses you directly (usually monthly) for each subsidy child enrolled based on state rate schedule
- Parent Co-Pay: Families pay small co-pay (0-10% of income), you collect difference from state
Example: If your tuition is $250/week and state subsidy rate is $200/week, family pays $50/week co-pay (if required), state pays you $200/week per child. This continues as long as child is enrolled and family remains eligible.
What's the difference between Head Start grants and CCDF funding?
Different funding structures and service requirements:
- CCDF (Subsidy System):
- Providers contract to accept subsidies for eligible families
- Focus: enabling working families to afford childcare
- Flexibility: providers set curriculum, hours, services
- Requirements: licensing, health/safety, basic quality standards
- Access: ongoing enrollment as long as families remain eligible
- Head Start (Direct Grant):
- Grantees receive direct federal funding to operate comprehensive programs
- Focus: school readiness for low-income children ages 0-5
- Comprehensive: must provide education, health, nutrition, family services, mental health
- Requirements: performance standards, staffing ratios, teacher credentials, family engagement
- Access: competitive 5-year grant cycles, rigorous application process
Strategy: Most providers start with CCDF subsidies (easier entry, stable funding). Head Start grants are more competitive but provide comprehensive funding for full-service programs. You can do both simultaneously.
My state's CCDF reimbursement rates are too low to cover costs. Are there grants to supplement?
Yes, several funding sources address inadequate reimbursement rates:
- Quality Bonuses: States offer rate increases (5-25% higher) for providers achieving QRIS higher tiers or NAEYC/NAFCC accreditation
- Infant-Toddler Supplements: Many states pay higher rates for infant-toddler slots (50-100% above preschool rates) due to low supply
- Workforce Stabilization: CCDF-funded wage supplements and bonuses (not tied to subsidy rates) helping retain teachers
- Cost of Quality: Some states conduct true cost-of-care studies and implement multi-year rate increases toward 75th percentile
- Federal Advocacy: 2024 CCDF Reauthorization encourages 75th percentile rates and equal pay with kindergarten teachers
Action: Join your state's childcare provider association to advocate for rate increases. Pursue QRIS advancement for bonus rates. Apply for separate quality improvement and workforce grants that aren't tied to subsidy rates. Consider filling remaining slots with private-pay families at market rates.
Can I get grant funding to start a new daycare, or are grants only for existing providers?
Startup funding is very limited but not impossible:
- Start with licensing: Most grants require active childcare license before applying (catch-22 for new providers)
- Startup exceptions:
- Childcare deserts: Some states offer startup grants ($10K-$50K) in areas with severe childcare shortage
- Employer partnerships: Employers provide startup capital for on-site or near-site childcare serving employees
- USDA Rural Development: New facilities can apply for construction loans/grants in rural areas
- Community foundations: Local foundations sometimes fund childcare startup in underserved neighborhoods
- Tribal lands: Tribal CCDF grants can fund new childcare facility construction on reservations
Reality: Most providers self-fund startup costs (personal savings, small business loans, investors). Once licensed and operational for 6-12 months, you become eligible for CCDF contracts, quality improvement grants, and expansion funding. Focus on getting licensed first, then accessing ongoing operational funding through subsidies and quality grants.
Do grants cover staff wages? Our teachers are underpaid and we can't afford raises.
Yes, several grant programs specifically address childcare workforce compensation:
- Workforce Stabilization Grants: CCDF funds supporting wage supplements ($1-$5/hour per staff), retention bonuses ($500-$2,000), and health benefits
- T.E.A.C.H. Wage Supplements: Bonuses for teachers completing education (6-10% raises tied to credential attainment)
- Quality Tier Bonuses: QRIS advancement increases reimbursement rates, enabling higher staff pay
- Head Start Parity: Head Start programs must pay teachers comparable to kindergarten teachers (bachelor's required)
- State Initiatives: Growing number of states implementing early educator wage ladders, minimum compensation scales, and benefits packages
Important: Childcare workforce funding is a major federal and state priority due to severe teacher shortages. Check your state early childhood office for current wage supplement programs, retention bonus opportunities, and professional development scholarships that include wage increases. Many states received American Rescue Plan stabilization grants (2021-2024) specifically for workforce compensation.
Key Resources for Daycare Providers
Child Care Technical Assistance Network
Federal resource connecting providers to CCDF programs, Head Start opportunities, quality improvement initiatives, and state early childhood systems.
Visit CCTA Network →Office of Head Start
Comprehensive information on Head Start and Early Head Start grant competitions, partnership opportunities, training and technical assistance, and program performance standards.
Visit OHS Portal →Child Care Aware of America
National membership organization connecting providers to state resource and referral agencies, professional development, quality initiatives, and funding opportunities.
Find State R&R →NAEYC Accreditation
National Association for the Education of Young Children accreditation system. Achieving accreditation qualifies providers for quality bonuses, higher reimbursement rates, and recognition grants.
Learn About Accreditation →Available Grants for Daycare Providers
Found 1 open grants