How to Afford Daycare in Texas: A Guide to Subsidies and Financial Assistance

Everything Texas parents need to know about lowering childcare costs. This guide explains Texas child care subsidies (CCS scholarships), eligibility criteria, how to apply, plus other programs like Head Start, Pre-K, and recent funding efforts that make daycare more affordable for families.

The Challenge of Daycare Affordability in Texas

Paying for daycare is a daunting hurdle for many Texas families. Full-time infant care at a licensed center can cost over $900 a month, and even home-based daycare for toddlers often runs hundreds per month. It’s not uncommon for child care to rival rent or mortgage payments. In fact, only about 14% of income-eligible Texas children under six currently receive childcare assistance, meaning the vast majority of low- and middle-income families must cover costs on their own[8]. This leaves many parents in difficult situations – some cut back work hours, some patch together care with relatives, and others simply struggle to pay and make sacrifices elsewhere in the budget.

The good news is Texas has programs to help ease the burden. The state’s primary assistance is the Child Care Services (CCS) program, which offers subsidized child care on a sliding fee scale for eligible families. However, demand exceeds funding. As of 2025, nearly 95,000 children are on the waitlist for subsidized child care scholarships in Texas[9]. This huge backlog illustrates the high need: thousands of parents are seeking help so they can work or attend school while their young children are in safe care. Texas lawmakers have begun to address this – in 2025 the state allocated an extra $100 million to child care scholarships, aiming to enroll more kids off the waitlist[10]. These new funds are expected to enable “thousands more parents [to] go to work while their children thrive in high-quality child care,” according to child advocates[11].

Still, it will take time for funds to translate into open subsidy spots. If you need help now, it’s important to understand the available programs and pursue every avenue. Let’s break down the key financial assistance options for Texas childcare.

Texas Child Care Services (CCS) Subsidy Program

The Child Care Services (CCS) program is Texas’s state-administered child care subsidy, funded through the federal Child Care and Development Fund. It is essentially a scholarship that pays a significant portion of your daycare or preschool costs if you qualify. Eligible families pay only a copayment (which may be as low as $0 for very low incomes, up to a sliding percentage of income for others), and the subsidy covers the rest of the provider’s rate.

Who is eligible? CCS is generally for low-income parents who are working, actively job searching, or in school/training and who need child care for children under age 13 (under 19 for disabled children). Eligibility is means-tested – income must typically be below a certain threshold relative to family size. In Texas, you may qualify if your income is under 85% of the state median income for your family size[12]. For example, a family of three earning under about $90,000 annually could be eligible, though in practice priority is given to much lower incomes since funds are limited. (Many CCS recipients are below ~150-200% of the federal poverty level.) Other priority groups include teen parents, children experiencing homelessness, foster children, and children with special needs.

How to apply: CCS is administered through regional Workforce Solutions offices across Texas. The first step is to contact your local Workforce Solutions or apply through the Texas Child Care Portal (TX3C). You’ll need to fill out an application and provide documentation of income, work/school status, and your child’s information. There is often a waitlist, unless you fit a priority category, so apply as early as possible. While on the waitlist, stay in touch with the agency and update any changes. Once approved, you will receive assistance in finding a participating daycare provider if you don’t have one already. Many centers and home daycares accept CCS vouchers – you can search specifically for providers that “accept subsidies” (DaycareLocator, for instance, lets you filter for this).

What the subsidy covers: If you receive a CCS scholarship, you’ll be responsible for a monthly copay based on your income (could range from $0 up to perhaps 9% of your income). The state pays the provider the remaining amount up to a rate cap. Many families end up paying only a small fraction of the standard tuition. CCS can cover full-time or part-time care, and it remains in effect as long as you maintain eligibility (income and work status are periodically re-verified). Note that you must use a Texas Rising Star-participating provider after a certain period – the state encourages families to choose higher-quality programs by requiring subsidy-accepting providers to meet quality standards[7].

It’s important to know that getting a subsidy spot can be challenging due to the aforementioned waitlists. Texas’s recent $100 million funding boost is aimed at reducing these waitlists[10]. Lawmakers acknowledge that access to affordable child care is crucial for both economic stability of families and the state’s workforce. So, if you’re waiting, keep communicating with your workforce board and also explore backup options in the interim (such as temporary assistance below).

Head Start and Early Head Start (Free Child Development Programs)

Head Start is a federal program providing free early childhood education and care to low-income families. In Texas, there are many Head Start centers (and Early Head Start for infants and toddlers) operating in communities statewide. These programs are free if you qualify by income (generally below the federal poverty line or other criteria like foster care, homelessness, or receiving public assistance like TANF). Head Start offers part-day or full-day preschool programs for 3- and 4-year-olds, focusing on school readiness, as well as comprehensive services like health and nutrition. Early Head Start serves pregnant mothers, infants, and toddlers with developmental services and child care.

While Head Start isn’t “daycare” per se, it can significantly offset childcare needs – for example, your 4-year-old might attend a Head Start pre-K for 6 hours each weekday at no cost. Some Head Start programs also provide extended daycare hours or wraparound care either free or on a sliding scale. To apply for Head Start, contact the Head Start program in your county or use the Head Start locator tool (findable on the Texas Head Start Association website or through your local community action agency).

Keep in mind that Head Start slots are limited and sometimes require enrolling at the start of the school year. But if your family is eligible, this program is one of the best supports available, offering high-quality early education completely free of charge.

Public Pre-Kindergarten Programs

Texas public school districts offer tuition-free Pre-K classes for eligible 4-year-old children (and in some districts, 3-year-olds as well). Eligibility for free Pre-K in Texas public schools typically includes children who are: from low-income families (qualify for free school lunch), unable to speak or comprehend English, homeless, have ever been in foster care, or are children of active-duty military. As of 2025, children of full-time public school teachers are also eligible for free pre-K, thanks to recent state legislation[13]. If your child meets one of these criteria, they can attend a public Pre-K program at no cost, usually for a half-day (3 hours) or in many districts a full school day (6+ hours).

Public Pre-K can substantially reduce your childcare costs for that age group – you’d only need before/after school care if you require extended hours beyond the program. Some elementary schools offer after-school care, or you might coordinate with a private daycare for wraparound services. Be sure to enroll early, as even though it’s a right for eligible children, spaces can fill up and deadlines apply (usually registration in spring for the fall term). If your child isn’t eligible for the free program, a few districts also have tuition-based Pre-K you could pay for, but priority goes to eligible kids.

Notably, Universal Pre-K is expanding: a growing number of Texas cities and charters have initiatives to serve more 4-year-olds regardless of income. Always check your local district’s Pre-K offerings – for example, some districts in Texas now provide free full-day pre-K to all 4-year-olds living in the district (Austin ISD and Dallas ISD have moved in this direction for wider access). Free public pre-Kindergarten can save families thousands in daycare costs while providing a high-quality early education.

Other Financial Assistance and Strategies

Beyond the big programs above, Texas parents can explore a patchwork of other supports:

• Employer Assistance & Flexible Spending Accounts: Check if your employer offers any childcare benefits. Some large Texas employers provide on-site daycare with discounted tuition or partner with daycare networks for reduced rates. Also, many employers offer a Dependent Care FSA – this lets you set aside up to $5,000 pre-tax to use for childcare expenses, which can save you 20-30% depending on your tax bracket. It’s not a direct subsidy, but it’s worth using to at least make your daycare payments tax-free. Ask your HR department about enrollment in a Dependent Care Flexible Spending Account.
• Military Family Subsidies: If you or your spouse is active-duty military or a veteran, you may qualify for childcare fee assistance through programs like Child Care Aware of America (which administers Army, Navy, Air Force, Marine and USDA childcare subsidies for off-base care). Texas has many military families; these programs cap your child care fees at a reduced amount when using approved civilian daycares.
• Community Programs & Nonprofits: In some Texas communities, local nonprofits or churches have mother’s day out programs, sliding-scale fees, or scholarships for childcare. For example, YMCA’s and some faith-based centers in Texas offer need-based discounts. United Way agencies in cities often help connect families to resources for childcare assistance as well. It’s worth dialing 2-1-1 or contacting a Texas Workforce Solutions office to ask about local programs. Some counties have their own initiatives or short-term grants to help with childcare for those who don’t qualify for CCS.
• Tax Credits: Don’t forget the federal Child and Dependent Care Tax Credit when you file taxes. In 2025, this credit can reimburse 20–35% of up to $3,000 in childcare expenses for one child (up to $6,000 for two or more children), depending on income. Although not Texas-specific, it’s money back in your pocket at tax time for daycare expenses you paid out-of-pocket. The credit isn’t huge relative to actual costs, but it could be several hundred dollars of relief or more. Note that Texas itself doesn’t have a state income tax, so there’s no state childcare credit – but the federal credit and the Child Tax Credit (up to $2,000 per child) can indirectly help with overall child-rearing costs.
• Negotiating and Planning: Lastly, talk openly with your daycare provider about your budget. Some providers might have multi-child discounts if you have siblings enrolled, or may be willing to work out a slightly reduced rate if you are facing hardship (especially home-based daycares). Even if not, planning your finances to coincide with when your child ages into a cheaper bracket (for instance, many centers lower the rate once a child turns 18 months or 2 years) can help. Also, when your child becomes eligible for public school (Kindergarten at age 5), remember that your need for paid care will drop dramatically – many families bridge the last year before school by using Pre-K or combining part-time care with family help if possible to cut costs.

A Brighter Outlook Ahead

Child care costs in Texas won’t magically drop overnight, but the landscape is slowly improving. The state’s increased investment of $2.5 billion (state and federal) in child care programs over the past couple years[14] is aimed at expanding subsidy slots and stabilizing providers. There is growing recognition among Texas lawmakers that affordable daycare is essential infrastructure for working families. Advocacy groups note that access to subsidies and quality care helps parents stay employed and boosts children’s development[11]. The recent $100 million boost is a start, and ongoing efforts may further increase funding or raise income eligibility so more middle-income families qualify.

For now, Texas parents should take a proactive approach: apply for any assistance you might qualify for, even if waitlisted; utilize free programs like Head Start or public Pre-K when available; and maximize tax breaks. Every bit of support can chip away at the formidable cost of daycare. It can be a juggling act, but many families combine these resources to make child care work within their budgets.

Remember, the early years are temporary. As your child grows, they will transition to school and costs will ease. Investing in quality child care is truly an investment in your child’s well-being and your family’s future. With the help of the programs discussed – and new initiatives on the horizon – more Texas parents will hopefully find quality daycare that doesn’t break the bank.

Sources: Texas Tribune report on $100M child care funding and 95k waitlist[10][9]; Texas Workforce Commission on CCS subsidies[15]; NY Assembly budget reference (for comparative insight on subsidy funding)[14]; FFYF analysis of low subsidy reach in TX[16][8].