Texas families struggle as childcare demand outpaces funding and availability

Childcare in Texas looks very different than it did just a few years ago. While demand remains high, many families are struggling to afford it.

Oct 20, 2025 - 22:00
Texas families struggle as childcare demand outpaces funding and availability

Childcare in Texas looks very different than it did just a few years ago. While demand remains high, many families are struggling to afford it.

The Kiddie Academy, a local childcare provider, understands the challenges families face. Its owner, James Ihedigbo, also serves on the board of the Texas Licensed Child Care Association, which represents childcare businesses across the state.

“This has been nine years that we’ve been in the industry, and the landscape has changed dramatically,” Ihedigbo said.

He pointed to legislative changes, including House Bill 3, which provides free pre-kindergarten education for 3- and 4-year-olds through public schools. “What that did was take a lot of customer base because as a business, it’s hard to compete with free,” he said.

Ihedigbo said this shift forced providers across Texas to increase prices to cover rising costs.

“For an infant child, there was a time when we were charging $230 a week for infant care, which was a reasonable cost,” he said. “Now those prices have changed to upwards of $400 to $420 within the state for the same level of care because the cost of providing that care has increased.”

According to the Texas Legislative Study Group, the average annual cost of infant care in Texas is $9,324.

Families that qualify for assistance can seek help through the Texas Workforce Commission (TWC), which offers resources and subsidies. However, Ihedigbo said the system is far from perfect.

“Currently, TWC services about 100,000 to 125,000 children and families in a given year,” he said. “There is a waitlist of more than 100,000 families who qualify for subsidized care but have no funding availability from the state to receive those funds.”

He added that many childcare providers have completed accreditation and have openings but cannot serve these families due to lack of state funding.

Ihedigbo said dozens of families are on waitlists at the Kiddie Academy’s five Houston-area locations. Wait times can range from six to 12 months.

One potential solution, he said, is increased state funding for childcare subsidies.

“In past legislation, $100 million was added toward the childcare subsidy program, but those were federal dollars,” Ihedigbo said. “There needs to be a state-issued childcare fund.”

KPRC 2 reached out to the Texas Workforce Commission with questions about their services, funding, and current wait times but has not yet received a response.

Meanwhile, Ihedigbo and the Texas Licensed Child Care Association plan to meet with the governor’s office Wednesday to discuss the current state of childcare services in Texas