Gov. Kim Reynolds signed a bill into law Thursday that offers child care assistance to child care workers regardless of their income, making a pilot program that started in 2023 permanent.
Under the new law, Iowans who work at least 32 hours a week directly providing child care can qualify for financial assistance for their own kids’ child care.
Reynolds said the pilot program has “become the single most effective way to reduce staff turnover in child care centers.”
“As more centers can grow their workforce, child care access will continue to expand, and we’ll be able to serve more working families across the state,” she said.
Reynolds said since 2020, she put hundreds of millions of federal dollars toward expanding child care access, creating space for 25,000 additional kids across the state. But she said many of those child care spots are not filled because there aren’t enough child care workers — and this new law is a solution to that problem.
Liz Umland, director of Stepping Stones Child Development Center in Slater, said attracting and retaining qualified teachers is one of her biggest challenges. She said being able to offer child care assistance to teachers directly addresses that issue and stabilizes the center’s finances.
“It allows centers like ours to attract skilled professionals, but also retain the experienced staff who build strong, lasting relationships with the children and families we serve,” Umland said.
She said this also builds a more stable and nurturing environment for children, who need consistent caregivers.
Alura Gould works at Stepping Stones and receives child care assistance through the pilot program. She said that’s what allowed her to go back to work in the child care field after her daughter was born.
Gould said the pilot program has been “amazing” for her and her coworkers.
“It allows us and our families to have stable income,” she said. “It allows the children we care for to continue to have the same teachers throughout the years that they’re familiar with and comfortable with. I’m extremely grateful for this, and I know a lot of other people are, too.”
The bill passed unanimously in the Iowa Senate and 86-3 in the House.
The nonpartisan Legislative Services Agency estimates an average of nearly 1,700 children per month with a parent working in child care would be eligible for child care assistance under the new law. That will cost an estimated $11.7 million next fiscal year, with the state paying $7 million and the federal government paying $4.7 million.
The law takes effect July 1.
