BATTLE CREEK, MI – Michigan is investing $100 million to help open 1,000 new child care facilities over the next two years in an effort to expand access to quality, affordable child care across the state.
Gov. Gretchen Whitmer announced the state’s new Caring for MI Future plan, a $100 million investment to expand the number of affordable child care facilities and recruit more child care staff in Michigan, according to a news release from the governor’s office.
The plan includes $51.1 million in grant funding for child care businesses to renovate and upgrade their facilities to meet licensing and quality standards and $11.4 million for businesses to recruit and retain more staff.
The program is part of the state’s ongoing efforts to treat child care as an economic development tool that can help get parents back into the workforce. Last fall, Whitmer appropriated a total of $1.4 billion in federal American Rescue Plan dollars to help expand access to child care and get families back to work.
“Nearly half of Michigan families live in a community without enough child care options to meet their needs,” Whitmer said in a prepared statement. “Lack of child care options means families are forced to leave the workforce, work fewer hours, or piece together child care options that don’t work very well for their family. That doesn’t work for kids, families, or employers.”
The Center of American Progress estimated 101,713 Michigan parents made career sacrifices in 2021 due to issues with child care – up significantly from 76,666 parents in 2019.
Availability and affordability continue to put parents between rock and a hard place. It’s estimated that 44% of Michigan’s population lives in a child care desert where there are not enough options. Meanwhile child care for two children takes up 27% of Michigan families’ income, according to CAP.
RELATED: 44% of Michigan families live in a child care desert. State pilot program addresses accessible care.
Lt. Gov. Garlin Gilchrist said the coronavirus pandemic revealed the importance of having access to quality child care in Michigan.
“One thing we saw in the pandemic amongst everything else, is that when there’s no place for children to go, everything stops,” Gilchrist said during a news conference in Battle Creek Monday, May 16. “Everything falls apart. Society doesn’t work when there’s no place for children to go.”
Gilchrist said the $100 million plan will not only help launch new child care facilities across the state, but also help support current facilities so they can continue to provide quality care to families.
“We have incredible child care entrepreneurs across the state, and right now, they’re standing tall for kids on a shoestring budget,” Gilchrist said in a prepared statement. “The Caring for MI Future plan responds to the most pressing needs facing child care entrepreneurs and strives to create a more sustainable child care market in Michigan.”
Child care providers in Michigan will be able to apply for the grant funding through the Michigan Department of Licensing and Regulatory Affairs. Grant funding will be available in these four key areas:
- Support identifying and renovating facilities: There will be $51.1 million in grant funding for child care businesses to renovate and upgrade facilities to meet licensing and quality standards. Grant applications will be available in late summer 2022.
- Startup funding: The state will award $23 million in startup grants for new child care programs. The funding will be available before they are licensed and immediately after receiving their license.
- Support to recruit staff: The state will invest over $11.4 million to recruit, train and retain child care workers.
- Business development tools: The state will invest $14.3 million for new businesses to make the startup and licensing process clearer and faster for providers. The funding will help businesses assess market demands, identify space, comply with health and safety rules and create a business plan.
For a complete list of grant funding opportunities and deadlines to apply, click here.
In January, Whitmer announced a $365 million program to help staff child care centers by providing $1,000 bonuses for full time staff. In the first round, nearly 6,000 childcare providers received funding and 38,000 childcare professionals received bonuses.
The state is now offering a second round of funding with another $365 million available to be distributed as a bonus to workers. So far, nearly 3,400 programs have applied, and funding is still available, the state said last week.
The deadline to apply for the second round of checks is 6 p.m. Thursday, May 26.
More on MLive:
24-hour childcare center filling a big need in Kalamazoo’s Edison neighborhood
Second round of $1,000 bonuses available for Michigan child care providers
44% of Michigan families live in a child care desert. State pilot program addresses accessible care.
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