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$60 million Arizona Child Care Infrastructure Grant program helps 478 child care providers improve their facilities

The state’s first-of-its-kind child care fund strengthened and expanded Arizona’s child care supply

PHOENIX, AZ (March 13, 2024) — The Arizona Child Care Infrastructure Grant program helped 478 child care providers across the state make much-needed improvements to increase the quality, capacity, and safety of their facilities, ensuring Arizona’s youngest children receive quality early education and more families have access to child care. A report released today by LISC Phoenix highlights the impacts of the grants and calls for additional funding to support the state’s child care providers – the “workforce behind the workforce”.

The Arizona Child Care Infrastructure Grant invested $59.6 million of Arizona’s federal Child Care and Development Fund (CCDF) pandemic relief directly into local child care businesses, helping providers to extend learning outdoors with new playgrounds, make repairs and address safety concerns to make classrooms warm and inviting, redesign spaces to serve more children, and more. Key impacts of the grant program include:

The top five most common infrastructure improvements of the grants included installing new astroturf or other ground covering outside, purchasing new playground equipment, replacing flooring, repainting interiors and exteriors, and upgrading HVAC systems.

“The impacts of these grants go beyond the incredible physical transformations,” said Angie Rodgers, CEO of the Arizona Department of Economic Security (DES). “Not only are children excited to learn and play in these updated facilities, but this funding has created new economic opportunities for families across Arizona, boosted staff morale, and supported dozens of locally-owned contracting businesses.”

LISC Phoenix administered the Arizona Child Care Infrastructure Grant program with $60 million to support grantmaking from DES and First Things First (FTF). Local partners with deep expertise in early childhood education and learning provided technical assistance and business coaching to grantees. Funding from time-limited child care stabilization grants appropriated to DES in the 2021 American Rescue Plan Act (ARPA) made the program possible.

“Arizona received a historic federal investment in child care to stabilize the child care industry and address existing challenges,” said Stacy Reinstein, Interim Assistant Director of the DES Division of Child Care. “Through this partnership with LISC Phoenix, FTF, and local businesses, we have been able to strategically invest these temporary funds to fill long-standing infrastructure needs for programs.”

LISC Phoenix received 968 applications from child care providers requesting infrastructure grant support. To address overwhelming interest in the program and remain within the available funding, LISC Phoenix prioritized child care providers in low- and moderate-income communities, areas where child care is limited, those serving infants and toddlers, and other high-need criteria. The 478 grantees ultimately reflect the diversity of Arizona: grantees are in 13 of Arizona’s 15 counties; 60% of grantees identify as Asian, Black or African American, Indigenous, or Hispanic or Latino; and 19% of grantees identify as Spanish speakers. A map on LISC Phoenix’s website shows the grantees statewide.

“By supporting 2,800 new child care slots across Arizona, this program is helping families from Coconino County to Santa Cruz County and everywhere in-between access high-quality care for their children,” said Melinda Morrison Gulick, CEO of First Things First. “I’m hopeful this increased capacity will boost Arizona’s economy – allowing more parents to pursue job opportunities and attracting new businesses.”

Federal funding helped sustain child care providers during the height of the COVID-19 pandemic, but these funds expired in September 2023. The U.S. Chamber of Commerce Foundation reported that there would be an estimated annual loss of $1.77 billion to Arizona’s economy due to child care funding issues. 

“The Arizona Child Care Infrastructure Grant program filled a critical need, but Arizona needs a dedicated child care infrastructure fund paired with ongoing technical assistance to help stabilize child care businesses across the state,” said Terry Benelli, Executive Director of LISC Phoenix. “This program demonstrates how partners can come together to support child care providers and deploy funding equitably to create lasting impact – we just need to do more of it.”

Read the full report and learn more about the Arizona Child Care Infrastructure Grant program at https://www.lisc.org/phoenix/our-resources/resource/arizona-child-care-infrastructure-grant-2024-report/.

About LISC Phoenix

Local Initiatives Support Corporation (LISC) is one the country’s largest community development organizations, helping forge vibrant, resilient communities across America. LISC Phoenix, one of 38 local offices, was formed in 1992 and since its inception has collaborated with place-based organizations and our corporate, foundation and public partners to create an innovative approach to working with neighborhoods that face systemic challenges. LISC has filled an important gap in the early education and child care landscape by providing capital, thought leadership, and technical resources centered on the physical environment. For more, visit www.lisc.org/phoenix.

Media Contact

Frieda Pollack
LISC Phoenix
fpollack@lisc.org

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