The next phase of grantmaking will expand access to child care and employment opportunities by assisting providers with brick-and-mortar costs for building and expanding child care centers

AUGUSTA – The Maine Department of Health and Human Services (DHHS) Office of Child and Family Services (OCFS) announced on Aug 18th, that the Child Care Infrastructure Grant Program, part of Governor Janet Mills’ Maine Jobs and Recovery Plan, has launched the second phase of grantmaking for costs associated with new construction of child care centers and expansion of existing child care providers. The grant program, announced by Governor Janet Mills in July, will provide a total $15 million investment to help child care businesses launch or expand, and could support more than 4,700 new child care slots across Maine, enabling over 2,700 parents to work or take classes while their children receive quality care.

The Child Care Infrastructure Grant Program, which utilizes Federal funding through the American Rescue Plan, is part of a $25 million child care initiative in the Governor’s Jobs Plan that includes $15 million for early childhood education. The grant program will help Maine people open child care businesses in their homes, transform existing buildings into quality child care spaces, and construct new child care facilities. Existing child care providers can also use the funding to expand the number of children they serve. Priority is given to sites in rural areas, that care for infants and toddlers, and participate in the child care subsidy program.

“We are excited to open this grant opportunity to child care facilities, which play a vital role in Maine’s child care infrastructure” said Health and Human Services Commissioner Jeanne Lambrew and OCFS Director Todd Landry. “Expanding these programs will not only support Maine families by providing high-quality, affordable child care options, but will also increase employment opportunities in early childhood education.”

OCFS is administering the Child Care Infrastructure Grant Program through a partnership with Brunswick-based Coastal Enterprises, Inc. The funding may be used for new construction, renovations, outdoor spaces, indoor furniture and fixtures, educational materials and working capital.

Applications are open to those building or expanding a child care facility (a child care business outside a home environment). Sole proprietors, partnerships, cooperatives, nonprofit organizations, and employers are eligible to apply for a grant covering up to 50 percent of their start-up costs. Existing child care providers seeking an additional license are also eligible to apply. Applicants renovating an existing building may request up to 50 percent of their start-up costs up to $80,000. Those constructing a new building are eligible for up to 50 percent of their start-up costs, up to $250,000. First round applications are being accepted through September 30, 2022.

The first phase of grantmaking to support new family or home-based child care businesses opened July 6 to encourage new providers in Maine’s rural areas. To date, 63 providers have applied for grants. Applications for this program are being accepted through May 2023. Home-based child care businesses may apply for 75 percent of their start-up costs, up to $8,500. New family child care businesses licensed by September 30, 2023, are also eligible for a one-time $2,000 stipend.

Governor Mills is making these and other historic investments in accessible child care in Maine as part of the first-ever Child Care Plan for Maine (PDF) developed by OCFS that invests approximately $120 million in American Rescue Plan funds to help Maine’s child care system recover and to improve quality, accessibility, and affordability over the long-term. Maine was one of the first 12 states to release American Rescue Plan funds, with more than 1,500 providers receiving the payments to date. This investment also includes helping low-income parents who receive subsidies by waiving their contribution to child care fees.

Additionally, Governor Mills included in her supplemental budget, signed into law in April, State funding to continue $200 monthly stipends to more than 7,000 child care workers, continuing stipends that the Department began providing last year as part of a larger effort to attract and retain people to work in this valuable profession.

As a result of these investments totaling more than $100 million to date, child care providers have been able to maintain and build capacity despite the pandemic – from 47,819 licensed slots in February 2020 to over 48,500 licensed slots in July 2022.

OCFS additionally maintains the Child Care Choices website, which allows families to locate and connect with providers in their area.

The Maine Jobs & Recovery Plan is the Governor’s plan, approved by the Legislature, to invest nearly $1 billion in Federal American Rescue Plan funds to improve the lives of Maine people and families, help businesses, create good-paying jobs, and build an economy poised for future prosperity. It draws heavily on recommendations from the Governor’s Economic Recovery Committee and the State’s 10-Year Economic Development Strategy. For more about Maine Jobs & Recovery Plan, visit maine.gov/jobsplan.