FRANKFORT, Kentucky – Additional federal aid goes to an industry hard hit by the COVID-19 pandemic: childcare. Governor Andy Beshear announced Thursday that Kentucky has given more than $ 763 million in federal funds to support childcare providers in the Commonwealth to help families with young children.

What you need to know

• Kentucky has received more than $ 763 million in federal funding to help relieve childcare providers in the Commonwealth
• The three-year funding comes from the American Rescue Plan Act for $ 1.9 trillion
• Cabinet Secretary for Health and Family Affairs Eric Friedlander said the federal funds will be used in two ways: sustainability and stabilizing the industry
• Prior to the COVID-19 pandemic, Kentucky had childcare capacity for 165,314 children in early 2020

In a press release, Beshear said the funding is helping more than just childcare.

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

The three-year funding comes from the $ 1.9 trillion Emergency Relief Act – the American Rescue Plan Act – which provides economic aid to families, workers, and businesses. Of that funding, $ 39 billion was provided to the childcare industry, both for providers and to support families who need help with paying for childcare.

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

“One of the biggest lessons we’ve learned over the past year is that childcare is essential. It supports not only children and families, but every other industry in this Commonwealth, ”Friedlander said. “It is time we recognized this not only with our appreciation, but also with the support that is being offered with this incredible funding.”

Ahead of the COVID-19 pandemic, in early 2020, Friedlander said Kentucky had childcare capacity for 165,314 children.

“We don’t just want to keep that number, we want to grow it with a more dynamic Kentucky economy,” he said. “We can maintain existing providers and stabilize communities with childcare deserts that need more options for safe and healthy childcare. This funding supports early education and lays a strong foundation for children now and for their future. “

Minister Friedlander said the federal funds will be used in two ways: sustainability and stabilizing the industry.

Most of the funding – more than $ 470 million – is for sustainability payments that will be distributed to childcare facilities across the state. According to Minister Friedlander, 95% of that funding – $ 446,561,055 – will be earmarked for stabilization grants for eligible programs opened by the federal cut-off date March 11, 2021. The remaining 5% – up to $ 23,503,213 – is for administrative expenses. He said CHFS is looking for partners to support these grants, especially the distribution of sustainability payments.

The second funding stream, $ 293 million from the Child Care and Development Block Grant (CCDBG), is a bit more flexible and was designed for four specific purposes:

• Increase in provider payments;
• Improving payment policy;
• Increase in wages for educators and family children’s homes; and
• Increase the number of high quality childcare services for underserved populations.

Families can apply for assistance through the Child Care Assistance Program. A prescreening tool and an application tool will be published on kynect.ky.gov.