FRANKFORT, Ky. — More federal relief is headed to an industry heavily impacted during the COVID-19 pandemic: child care. Gov. Andy Beshear announced Thursday that Kentucky has been awarded more than $763 million in federal funds to provide relief for child care providers in the Commonwealth, in turn helping families with young children.

In a press release, Beshear said the funding supports more than just child care.

“This funding is an investment not only in our young children and their educators, but in our economy as well,” Beshear said. “My administration is committed to early childhood development and rebuilding the state’s economy as we emerge from the COVID-19 crisis. This funding allows our child care providers to stay open, keeps parents in the workforce and keeps our infrastructure strong to build a better Kentucky.”

The three-year funding comes from the $1.9 trillion emergency relief bill – the American Rescue Plan Act – which provides economic relief to families, workers and businesses. Of those funds, $39 billion was specified for the child care industry, both for providers and to support families that need help paying for child care.

Cabinet for Health and Family Services (CHFS) Secretary Eric Friedlander said the funding is a lifeline for the state’s economy and for child care providers.

“One of the greatest lessons we have learned over the last year is that child care is essential. It not only supports children and families, it supports every other industry in this commonwealth,” Friedlander said. “It’s time we recognize this not just with our appreciation, but with support such as what is offered with this incredible funding.”

Before the COVID-19 pandemic, in early 2020, Friedlander said Kentucky had child care capacity for 165,314 children.

“We want to not only keep that number but make it grow with a more vibrant Kentucky economy,” he said. “We can sustain existing providers and stabilize communities with child care deserts that need more options for safe, healthy child care. This funding supports early learning and lays a strong foundation for children now and for their future.”

Secretary Friedlander said the federal funding will be used in two ways: sustainability and stabilization of the industry.

The largest part of the funding – more than $470 million – is for sustainability payments that will be distributed to child care providers throughout the state. Secretary Friedlander said 95% of this funding – $446,561,055 – is dedicated to stabilization grants for eligible programs opened by the federal cutoff date of March 11, 2021. The remaining 5% – up to $23,503,213 – is dedicated to administrative expenses. He said CHFS is looking for partners to assist with these grants, particularly the distribution of the sustainability payments.

The second stream of funding, $293 million from the Child Care and Development Block Grant (CCDBG) is slightly more flexible and has been designated for four specific purposes:

• increasing provider payments;
• improving payment policies;
• increasing wages for early educators and family child care homes; and
• increasing the number of quality child care options for underserved populations.

Families may apply for assistance through the Child Care Assistance Program. A prescreening tool and application tool is posted to kynect.ky.gov.