Child Care Resources for the Kentucky Business Community

The Employee Child Care Assistance Partnership

IMPORTANT UPDATE: The General Assembly included continued funding for the Employee Child Care Assistance Partnership in the 2025-2026 state budget. This means that the program has continued funding through June 30, 2026. Interested employers should review the information below and apply as soon as possible to take advantage of this funding opportunity. Funds are awarded on a first-come, first-served basis. 
In 2022, the Kentucky General Assembly passed legislation to create the Employee Child Care Assistance Partnership (House Bill 499). Through this program, employers can partner with the state to provide financial assistance to employees struggling with the cost of quality child care. The program offers employers a powerful employee attraction and retention tool and an opportunity to double the size of an employee benefit with assistance from the state.
Learn more and APPLY NOW for the Employee Child Care Assistance Partnership on the Cabinet for Health and Family Services’ website.

Frequently Asked Questions

Federal and State Tax Guidance

Here’s how it works:

  • An employer agrees to assist an employee with the cost of child care through direct cash assistance paid to the employee’s child care provider. The amount of assistance is up to the employer.

  • The child care provider must be a licensed provider participating in the Kentucky All STARS quality-rating program.
  • The employer submits a contract agreed to by the employer, the employee, and the provider to the Kentucky Cabinet for Health and Family Services.

  • If approved, the Cabinet will match the employer’s contribution up to 100 percent and will make payments on the employee’s behalf directly to the child care provider. For example, if the employer commits $100 per month to the employee’s child care expenses, the state may match that contribution up to another $100, giving the employee up to a total of $200 in child care assistance for the duration of the contract.

  • Participation for employers, employees, and child care providers is 100% voluntary, and contracts may be cancelled at any time.

  • Restrictions and specific eligibility requirements apply.


There are several key steps employers should be taking NOW: 

  • Assess the child care needs of your workforce. To assist with this, the Kentucky Chamber has developed a series of recommended survey questions for employers to use.
  • Develop familiarity with the rules of the program and determine your company’s ability to comply with its administrative guidelines and eligibility requirements. The Chamber is working to develop additional resources to assist interested employers. The original legislation can be read here. The regulations for the program can be read here. Additional information is forthcoming.
  • Employers should begin building relationships with child care providers in their region. Use the Cabinet’s child care provider database to find providers in your area.


Additional information and links will be provided on this page as they become available.

Watch a Webinar to Learn More About the Program



Additional Resources

There are numerous resources that employers should be aware of to address workforce challenges associated with child care.
Read the Kentucky Chamber’s full guide on Child Care Resources for the Kentucky Business Community.