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One of the most pressing issues facing Iowa's workforce is the ability to find affordable, accessible child care. Not only does this impact individual Iowans, but it also impacts the ability for employers to hire and retain workers. In response to this challenge, Governor Reynolds launched the Child Care Taskforce to develop a comprehensive strategy to address the child care shortage and barriers to work in Iowa.
In the fall of 2021, Governor Reynolds, along with stakeholders, released the recommendations from the report. Based on the recommendations, Governor Reynolds is implementing a childcare management system, creating additional funding opportunities, and introducing new initiatives to support working families and Iowa’s child care system. Check out some of the great funding programs that IWD has supported that are creating and expanding new child care opportunities across Iowa.
Back to topChild Care Business Incentive Grant (New Awards Announced)
The Child Care Business Incentive Grant Program, first established in 2022, is targeted at helping employers offer or expand child care options as a benefit to their employees. Funds have supported local infrastructure investments and arrangements between employers and child care facilities to expand child care options.
In November 2024, Governor Reynolds announced a re-opening of the grant to help Iowa businesses further expand child care options for their employees. Grant awards were announced on January 6, 2025, with $14 million in new grants announced for both previous projects and new projects. The new awardees are estimated to create nearly 875 new slots across the state.
Gov. Reynolds Awards Iowa Businesses $14 Million in Child Care Grants
Governor Kim Reynolds announced new grant awards for Iowa businesses who are committed to expanding child care projects for their employees. Projects are estimated to create nearly 875 new slots.
Child Care Challenge Fund
The Child Care Challenge Fund supports regional and community projects to establish local child care facilities and increase the availability of quality, affordable child care for working Iowans. Child Care Challenge grants through IWD support community projects to establish local child care facilities, while HHS child care grants provide support for equipment, personnel, training, and supplies for new or ongoing child care facilities.
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