Child Care Relief Funds Analysis 2021

1 Overview

This report provides an analysis of the types of providers who did and did not apply for the first round of Child Care Relief Funding (CCRF), the differences between providers who did and did not apply, and how providers spent their relief funding. Analyses were completed using relief funding application data for the 2021 application cycle, expenditure data from the 2022 application, and background data from weekly closure reports (e.g., desert status, TRS status) and HHSC CCL Daycare and Residential Operations data (e.g., subsidy status, capacity).

Overall, 73% (9,565/13,091) of eligible providers applied for funding. Among eligible providers, 365 did not have a corresponding match in the weekly closure reports or HHSC data and, therefore, were missing data for background variables of interest. Because the analysis relies on these variables, providers who did not have background data were excluded. Therefore, a total of 12,726 providers with complete background data were included.

1.1 Eligible providers

There are more than twice as many center-based providers as there are home-based. Among center-based providers, about 50% are considered large with a capacity of 100 or more. Among home-based providers, about 63% are registered homes.


1.2 Percent of applicants vs. non-applicants among eligible providers

Among eligible providers with complete background data, 74% (9,413/12,726) applied for the first round of CCRF funding, leaving 3,313 providers that did not apply. Centers applied for funding at a higher rate than home providers, with 76% of center providers applying vs. 69% of home providers. Subsidy providers applied for funding at a higher rate than non-subsidy providers, with 88% of subsidy providers applying for funding compared to only 59% of non-subsidy providers. Urban providers applied for funding at a higher rate than rural providers (75% vs. 65%), and non-desert providers applied at a higher rate than desert providers (74% vs. 67%).


1.3 Average amount paid

Overall, the average total award amount paid was $59,316. Licensed centers were paid on average $80,804, whereas home-based providers were paid about $6,508.


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2 Applicants

2.1 By provider type and subsidy status

Subsidy providers consistently applied for funding at higher rates relative to non-subsidy providers, regardless of provider type and capacity. The figure on the left shows the total number of providers by provider type and capacity (e.g., center vs. home, subsidy vs. non-subsidy, large vs. medium, etc.) that applied for funding.

The figure on the right shows the percentage of each type of provider who applied for funding, indicating that large centers who accept subsidies applied at the highest rate, with 91% (2,264/2,489) of large centers applying for funding. Small non-subsidy centers applied at the lowest rate, with only 46% (289/634) of small non-subsidy centers applying for funding.


2.2 By provider type and urban-rural classification

Urban providers applied for funding at a higher rate relative to rural providers. However, both rural and urban centers applied at slightly higher rates (67% and 78%, respectively) compared to rural and urban home providers (58% and 70%, respectively).


2.3 By provider type, subsidy status, and urban-rural classification

The figure below accounts for both subsidy status and urban-rural classification. The width of each bar illustrates that there are more center provider applicants than home provider applicants. Urban centers who accept subsidies make up the largest proportion of providers that applied for funding, accounting for 4,065 providers, or 43% of all applicants.


2.4 By workforce board

In the figures below, workforce boards are sorted by size (i.e., the total number of eligible providers on the left and the total number of eligible subsidy providers on the right). In the figure on the left, the light blue shaded region illustrates the total number of eligible providers in each workforce board, and the dark blue shaded region indicates the proportion of eligible providers in each workforce board area who applied for funding. In the figure on the right, the light red shaded region illustrates the total number of eligible subsidy providers in each workforce board, and the dark red shaded region indicates the proportion of eligible subsidy providers who applied for funding. (See Supplemental Table 1 in Appendix for full data.)

Gulf Coast is by far the largest workforce board, with a total of 3,435 eligible providers. Of those eligible providers, 2,507 applied, which is 73% of eligible providers in the Gulf Coast.


A closer look at the five largest workforce boards (based on the number of eligible providers) reveals that Gulf Coast subsidy centers make up the largest proportion of applicants, accounting for 1,106 providers. Gulf coast non-subsidy homes make up the next largest proportion of applicants, with 587 providers. Applicants from the top five workforce boards account for 61% of all applicants in total.



2.5 By TRS status

TRS-rated providers were more likely to apply than providers who are not participating in the TRS program. For example, 94% of all TRS 4-star center providers applied for funding.


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3 Non-applicants

3.1 By provider type and subsidy status

Non-subsidy providers were much less likely to apply for funding than subsidy providers. The figure on the left shows the total number of non-applicants by type and size, illustrating that non-subsidy providers accounted for 78% (2,573/3,313) of the providers who did not apply. The figure on the right shows the percent of each type of provider who applied for funding. Non-subsidy large centers and registered homes make up the largest fraction of providers that did not apply.


3.2 By provider type and urban-rural classification

Compared to urban providers, rural providers were less likely to apply for funding, regardless of provider type. For example, 42% of eligible rural home providers did not apply for funding.


3.3 By provider type, subsidy status, and urban-rural classification

The figure below accounts for both urban-rural classification and subsidy status. Urban centers that do not accept subsidies make up the largest fraction of providers that did not apply for funding, accounting for 1,258 providers or 38% of all non-applicants.


3.4 By workforce board

In the figures below, workforce boards are again sorted by size. For the figure on the left, the light blue shaded region illustrates the total number of eligible providers in each workforce board, and the dark blue shaded region indicates what proportion of eligible providers in each workforce board did not apply for funding. For the figure on the right, the light red shaded region illustrates the total number of eligible subsidy providers in each workforce board, and the dark red shaded region indicates what proportion of eligible subsidy providers did not apply for funding.

Within the Gulf Coast, 928 providers did not apply out of 3,435 eligible providers.


A closer look at the top five largest workforce boards (based on the number of eligible providers) reveals that Gulf Coast non-subsidy centers make up the largest proportion of non-applicants, accounting for 419 providers. The next largest group of non-applicants is non-subsidy homes in the Gulf Coast, accounting for 365 providers. Non-subsidy providers in the Gulf Coast alone account for 24% of the total eligible providers that did not apply for funding.



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4 Predictors of application

A linear probability model was used to predict the likelihood that childcare providers applied for CCRF funding, using variables from the weekly closure reports and HHSC data, as well as social vulnerability index (SVI) data obtained from the CDC. Among eligible providers, 998 did not match to the background or SVI data. Therefore, a total of 11,728 providers with complete background and SVI data were included in this analysis. Subsidy status is the largest predictor of application. Providers that accept child care subsidies were about 27 percentage points more likely to apply for grant funding compared to non-subsidy providers. Subsidy status may be correlated with other unmeasured attributes that led them to be more likely to apply for funding, such as a closer connection to TWC or a more up-to-date email address on file with TWC. This could have led subsidy providers to be more likely to learn about the grant when the application was open or be more likely to trust information coming from TWC.

Licensed and registered homes were also slightly more likely to apply for grant funding than licensed centers. Licensed homes were about 8 percentage points more likely to apply relative to licensed centers, and registered homes were about 4 percentage points more likely to apply relative to licensed centers. This is not driven by home providers being more likely to accept subsidies, as about 29% of home providers accept the subsidy compared to 60% of licensed centers.

The location of the childcare provider also impacts the likelihood of applying for the grant. Providers located in urban counties (defined as a population greater than 100,000) were about 9 percentage points more likely to apply for funding. This again is not driven by subsidy status, as 50% of urban providers accept the subsidy, and 56% of rural providers accept the subsidy. However, whether the provider is located in a child care desert did not have a significant impact on the likelihood of applying.

Additionally, measures of social vulnerability were controlled to determine whether this predicts the likelihood of applying. Providers in more socially vulnerable areas were less likely to apply for funding, with those in the most socially vulnerable areas being the least likely to apply. Providers were split into four categories based on their social vulnerability index (SVI): those located in low SVI areas, mid-low SVI, mid-high SVI, and high SVI. While there is no statistically significant difference between the likelihood of applying among low and mid-low SVI providers, those in mid-high SVI areas are about 3 percentage points less likely to apply for funding relative to low SVI areas. Those in high SVI areas are 6 percentage points less likely to apply for funding relative to low SVI areas. There are a total of 1,317 non-applicants in mid-high and high SVI areas (with 697 mid-high and 620 high non-applicants). However, we do not find that homes in socially vulnerable areas are any more or less likely to apply for funding relative to centers in socially vulnerable areas.

Childcare providers that only serve school-aged children or who were temporarily closed were less likely to apply for funding. Provider capacity and being open just one or two days per week did not have an impact on the likelihood of applying for funding. In addition, the number of children served using the subsidy did not have an impact on the probability of applying.


5 Utilization of relief funding

Overall, 89% (8,471/9,565) of providers who applied for and received 2021 CCRF funding reported their expenditures during the 2022 application cycle. We examine how these 8,471 recipients spent their relief funding for the 2021 reporting period.

5.1 Expenditures overview

The figure below illustrates the categories on which providers spent their funding for the 2021 reporting period. Overall, the two most common spending categories were personnel costs and rent, mortgage, or utilities, with 87% and 85% of providers, respectively, reporting that they had used their money on related expenses. Only 21% and 13% of providers reported expenditures on parent tuition or copays and mental health support, respectively.

Differences in expenditures were most apparent between home and center providers. The most common expense categories among centers were personnel costs (94%) and rent, mortgage or utilities (83%), while homes were more likely to report expenses on rent, mortgage, or utilities (91%) and personal protective equipment (83%). This is to be expected, as home-based providers generally do not have large staffing structures, and personnel-related costs are of greater concern to centers. Differences between subsidy status (non-subsidy vs. subsidy) and county type (rural vs. urban) were marginal.

Expense category Provider type Subsidy status County type Overall
Center Home Non-subsidy Subsidy Rural Urban
Personnel costs 94% 67% 82% 90% 90% 86% 87%
Rent/Mortgage/Utilities 83% 91% 84% 86% 82% 86% 85%
Personal Protective Equipment 69% 83% 73% 72% 72% 73% 73%
Goods and services 69% 79% 70% 73% 72% 72% 72%
Purchases/updates to equipment and supplies 60% 78% 67% 64% 61% 66% 65%
Parent tuition/copays 23% 16% 16% 24% 21% 21% 21%
Mental health support 13% 13% 12% 13% 11% 13% 13%
Other allowable expenses 6% 7% 6% 6% 6% 6% 6%


The figure below illustrates the breakdown of top expenditures among providers by provider characteristic. Overall, the majority of providers indicated that their top expenditure category was personnel costs, with 59% of providers reporting that the personnel costs were their greatest expense. Twenty-eight percent of providers reported that rent, mortgage, or utilities was their greatest expense. Again, the greatest differences are between home and center providers due to difference in personnel and staffing structures. Compared to just 18% of homes, 74% of centers reported that personnel costs were their greatest expense. Home providers were far more likely to report that rent, mortgage, or utilities was their top spending category (52%).

Top expense category Provider type Subsidy status County type Overall
Center Home Non-subsidy Subsidy Rural Urban
Personnel costs 74% 18% 51% 64% 66% 58% 59%
Rent/Mortgage/Utilities 19% 52% 32% 25% 18% 29% 28%
Goods and services 4% 15% 9% 6% 9% 7% 7%
Personal Protective Equipment 1% 7% 3% 2% 3% 2% 2%
Purchases/updates to equipment and supplies 1% 5% 3% 2% 2% 2% 2%
Other 1% 2% 2% 1% 1% 1% 1%


Apparent differences between subsidy status categories and county type categories appear to be driven by differences between center and home providers. That is, differences between non-subsidy and subsidy providers and rural and urban providers appear to be the result of the unequal distribution of home and center providers within each provider characteristic. For example, while subsidy providers were slightly more likely than non-subsidy providers to report personnel costs as their top spending category, these differences largely disappear when accounting for provider type (i.e., differences between subsidy and non-subsidy providers within homes and centers, respectively, become smaller). (See Supplemental Table 2 in Appendix.)

5.2 Expenditures by provider type

To gain further insight into the differences between home and center providers, the impact of provider capacity and licensing on expenditures was examined. Differences between provider types are much greater than differences within. While centers with small capacity were slightly more likely to spend funding on personal protective equipment compared to large-capacity centers (74% vs. 66%), and licensed homes were slightly more likely to spend money on personnel costs compared to registered homes (72% vs. 63%), expenditures were generally consistent within provider types.

Expense category Center Home
Small (0-50) Medium (51-99) Large (100+) Licensed Home Registered Home
Personnel costs 91% 95% 95% 72% 63%
Rent/Mortgage/Utilities 86% 83% 82% 89% 93%
Personal Protective Equipment 74% 70% 66% 81% 84%
Purchases/updates to equipment and supplies 68% 64% 56% 74% 80%
Goods and services 72% 70% 68% 78% 80%
Mental health support 13% 13% 12% 12% 14%
Parent tuition/copays 23% 24% 21% 18% 15%
Other allowable expenses 7% 6% 6% 8% 5%


Top spending categories also did not differ significantly within provider types. While larger-capacity centers were more likely to report personnel costs as top spending category compared to small-capacity centers (79% vs. 63%), as expected, there were no other notable differences between top spending categories within home and center providers.

Top expense category Center Home
Small (0-50) Medium (51-99) Large (100+) Licensed Home Registered Home
Personnel costs 63% 74% 79% 21% 16%
Rent/Mortgage/Utilities 26% 20% 16% 50% 54%
Goods and services 6% 4% 3% 15% 15%
Purchases/updates to equipment and supplies 2% 1% 1% 5% 6%
Other 1% 1% 1% 3% 2%
Personal Protective Equipment 1% 1% 0% 6% 7%

5.3 Expenditures by workforce board

Expenditures were also compared between the five largest workforce boards: Gulf Coast, North Central, Dallas, Alamo, and Tarrant. While providers located in the North Central local workforce developmental area were slightly less likely to report expenditures on purchases or updates to equipment and supplies and parent tuition or copays, expenditures were not notably different between workforce boards. (See Supplemental Table 3 in Appendix for full expenditure data by workforce board.)

Expense category Gulf Coast North Central Dallas Alamo Tarrant Overall
Personnel costs 86% 88% 88% 89% 91% 87%
Rent/Mortgage/Utilities 84% 87% 89% 87% 84% 85%
Personal Protective Equipment 71% 71% 80% 78% 75% 73%
Purchases/updates to equipment and supplies 66% 56% 71% 72% 69% 65%
Goods and services 72% 72% 75% 75% 75% 72%
Mental health support 14% 11% 13% 10% 17% 13%
Parent tuition/copays 24% 15% 25% 20% 25% 21%
Other allowable expenses 6% 5% 8% 4% 5% 6%

Again, top spending categories were consistent across the top five workforce boards. For each, over half of providers indicated that personnel costs were their top spending category, followed by rent, mortgage, or utilities (25-31%). A marginally larger share of providers located in the Dallas and Alamo board areas reported goods and services as their top spending category. (See Supplemental Table 4 in Appendix for full expenditure data by workforce board.)

Top expense category Gulf Coast North Central Dallas Alamo Tarrant Overall
Personnel costs 58% 62% 57% 56% 61% 59%
Rent/Mortgage/Utilities 31% 29% 27% 28% 25% 28%
Goods and services 6% 5% 9% 11% 6% 7%
Personal Protective Equipment 2% 2% 2% 2% 3% 2%
Purchases/updates to equipment and supplies 2% 1% 2% 2% 3% 2%
Other 1% 1% 2% 1% 1% 1%

6 Appendix

Applicants and eligible providers by workforce board

Supplemental Table 1. Applications by workforce board
Workforce board All providers Subsidy providers
Total eligible Number applied Percent applied Total eligible Number applied Percent applied
Gulf Coast 3435 2507 73% 1479 1335 90%
North Central 1386 1041 75% 505 450 89%
Dallas 1014 750 74% 481 434 90%
Alamo 990 758 77% 481 420 87%
Tarrant 913 714 78% 479 414 86%
Capital Area 584 411 70% 273 246 90%
Rural Capital 582 453 78% 268 242 90%
Lower Rio Grande Valley 480 403 84% 367 362 99%
Borderplex 321 265 83% 259 225 87%
Central Texas 296 210 71% 206 150 73%
East Texas 264 184 70% 170 139 82%
Coastal Bend 257 144 56% 135 101 75%
Cameron County 224 162 72% 145 141 97%
South Plains 206 157 76% 120 110 92%
Panhandle 177 114 64% 101 75 74%
Heart of Texas 170 119 70% 102 95 93%
Permian Basin 164 104 63% 72 60 83%
Brazos Valley 163 112 69% 103 93 90%
West Central Texas 155 115 74% 86 81 94%
Southeast Texas 147 122 83% 96 88 92%
South Texas 129 108 84% 106 99 93%
North Texas 121 86 71% 68 57 84%
Deep East Texas 106 65 61% 71 57 80%
Golden Crescent 104 54 52% 50 37 74%
North East Texas 91 73 80% 56 51 91%
Texoma 88 65 74% 58 46 79%
Concho Valley 83 67 81% 51 47 92%
Middle Rio Grande 76 50 66% 38 31 82%
Total 12726 9413 74% 6426 5686 88%

Expenditures table by provider type, subsidy status, and county classification

Supplemental Table 2. Comparison of expenditures and top spending categories by provider type, subsidy status, and county classification
Center Home
Subsidy Non-subsidy Rural Urban Subsidy Non-subsidy Rural Urban
Reported expenditures
Personnel costs 94% 96% 95% 94% 69% 65% 70% 66%
Rent/Mortgage/Utilities 85% 77% 81% 83% 92% 91% 87% 92%
Goods and services 71% 64% 71% 69% 80% 79% 76% 79%
Personal Protective Equipment 70% 66% 69% 69% 84% 82% 82% 83%
Purchases/updates to equipment and supplies 61% 58% 58% 61% 78% 78% 69% 79%
Parent tuition/copays 25% 17% 23% 22% 19% 15% 14% 16%
Mental health support 13% 12% 11% 13% 14% 13% 11% 13%
Other allowable expenses 6% 6% 5% 6% 8% 5% 8% 6%
Top expenditure category
Personnel costs 73% 77% 79% 74% 17% 19% 22% 18%
Rent/Mortgage/Utilities 20% 16% 11% 20% 53% 51% 44% 53%
Goods and services 4% 4% 6% 4% 14% 15% 22% 14%
Other 1% 1% 1% 1% 3% 2% 1% 3%
Purchases/updates to equipment and supplies 1% 1% 2% 1% 6% 5% 4% 5%
Personal Protective Equipment 1% 1% 1% 1% 7% 7% 8% 7%


Expenditures tables by workforce board

Supplemental Table 3. Comparison of expenditures by workforce board
Workforce board N Personnel costs Rent, mortgage, or utilities Personal Protective Equipment Purchases or updates to equipment and supplies Goods and services Mental health support Parent tuition or copays Other allowable expenses
Gulf Coast 2254 86% 84% 71% 66% 72% 14% 24% 6%
North Central 938 88% 87% 71% 56% 72% 11% 15% 5%
Dallas 692 88% 89% 80% 71% 75% 13% 25% 8%
Alamo 680 89% 87% 78% 72% 75% 10% 20% 4%
Tarrant 636 91% 84% 75% 69% 75% 17% 25% 5%
Rural Capital 405 74% 83% 53% 48% 58% 9% 14% 4%
Lower Rio Grande Valley 370 87% 92% 81% 75% 76% 14% 17% 8%
Capital Area 364 91% 77% 68% 59% 61% 11% 14% 7%
Borderplex 239 85% 92% 77% 73% 76% 18% 20% 8%
Central Texas 184 82% 89% 77% 76% 74% 20% 13% 5%
East Texas 167 86% 82% 76% 66% 75% 17% 23% 5%
Cameron County 152 83% 91% 76% 70% 71% 12% 19% 11%
South Plains 145 88% 84% 72% 73% 73% 6% 20% 3%
Coastal Bend 127 87% 88% 76% 62% 76% 12% 19% 6%
Southeast Texas 115 93% 87% 80% 70% 74% 17% 36% 6%
Brazos Valley 104 89% 83% 76% 52% 71% 10% 18% 4%
Heart of Texas 103 87% 80% 65% 56% 67% 15% 24% 12%
West Central Texas 99 85% 83% 61% 52% 72% 8% 19% 11%
South Texas 98 91% 94% 81% 74% 72% 8% 16% 3%
Panhandle 97 79% 75% 71% 73% 75% 11% 28% 9%
Permian Basin 89 89% 74% 62% 52% 55% 8% 15% 3%
North Texas 81 89% 77% 54% 46% 62% 12% 23% 6%
North East Texas 65 92% 75% 82% 58% 82% 14% 22% 6%
Deep East Texas 62 97% 90% 76% 69% 76% 23% 31% 10%
Texoma 60 85% 88% 75% 62% 73% 15% 23% 5%
Concho Valley 50 86% 78% 70% 56% 56% 0% 4% 4%
Golden Crescent 48 85% 77% 67% 60% 73% 6% 12% 4%
Middle Rio Grande 47 91% 87% 83% 83% 79% 9% 23% 6%
Total 8471 87% 85% 73% 65% 72% 13% 21% 6%


Supplemental Table 4. Comparison of top expenditures by workforce board
Workforce board N Personnel costs Rent, mortgage, or utilities Goods and services Purchases or updates to equipment and supplies Personal Protective Equipment Other
Gulf Coast 2254 58% 31% 6% 2% 2% 1%
North Central 938 62% 29% 5% 1% 2% 1%
Dallas 692 57% 27% 9% 2% 2% 2%
Alamo 680 56% 28% 11% 2% 2% 1%
Tarrant 636 61% 25% 6% 3% 3% 1%
Rural Capital 405 56% 35% 5% 2% 1% 0%
Lower Rio Grande Valley 370 55% 29% 9% 3% 3% 1%
Capital Area 364 73% 21% 4% 0% 0% 2%
Borderplex 239 53% 33% 5% 5% 3% 1%
Central Texas 184 54% 27% 8% 5% 4% 2%
East Texas 167 67% 21% 7% 2% 1% 2%
Cameron County 152 44% 43% 5% 3% 3% 1%
South Plains 145 70% 21% 4% 1% 4% 0%
Coastal Bend 127 55% 28% 10% 3% 2% 2%
Southeast Texas 115 68% 18% 8% 3% 3% 1%
Brazos Valley 104 64% 21% 9% 3% 3% 0%
Heart of Texas 103 66% 22% 6% 2% 3% 1%
West Central Texas 99 57% 19% 13% 2% 7% 2%
South Texas 98 55% 33% 5% 2% 2% 3%
Panhandle 97 52% 22% 12% 8% 2% 4%
Permian Basin 89 73% 17% 6% 1% 0% 3%
North Texas 81 63% 25% 10% 1% 1% 0%
North East Texas 65 66% 20% 8% 2% 2% 3%
Deep East Texas 62 82% 10% 5% 0% 2% 2%
Texoma 60 55% 30% 13% 0% 0% 2%
Concho Valley 50 72% 16% 6% 2% 2% 2%
Golden Crescent 48 58% 21% 6% 6% 4% 4%
Middle Rio Grande 47 64% 6% 21% 2% 6% 0%
Total 8471 59% 28% 7% 2% 2% 1%