The Child Care Cred Program aims to provide support for working-class families across the state. The initiative offers working-class families living in poverty the option to split childcare costs between the employee, employer and the state.
The program was spearheaded by Rep. Mark Johnson and had $10 million approved in the state budget for fiscal years 2026 and 2027. The program application is open to any family in Ohio whose combined household income falls between 200% and 400% of the federal poverty level, depending on the number of individuals residing in the household.
The project follows a continued rise in childcare costs across the state in recent years. Director of the Ohio Department of Children and Youth Kara Wente discussed why childcare costs are rising.
“As we've seen inflation increase over the last several years, we have seen the need to increase wages, and our early care and education professionals still are on the low end of the wage continuum,” Wente said. “But certainly there's just an increased cost kind of across the board, whether it's for payroll or taxes or supplies.”
According to Policy Matters Ohio, the average annual childcare cost in Ohio for one infant is $10,417. The development, coupled with a decrease in the number of childcare workers, is a contributor to the difficulty in accessing childcare for Ohioans.
Johnson commented on the impact the rising cost has had on working families.
“It's got to the point where moms are staying home,” Johnson said. “Especially if you have more than one job, one child, you're looking at eight to 9000 a year. And even if it's just part-time, it's still a large expense unless you make a good wage.”
The program allows any Ohio-based employer to choose an eligible employee. Wente commented on the process employers will engage in.
“They would identify the employees they have that are eligible, so they have to be under the 400% of the federal poverty level,” Wente said. “What we have heard in other states is that they may pick a category. So it could be that they have a really high turnover call center, and they are lower wage, so they may elect to offer this benefit to their entire call center.”
Johnson said the idea of establishing the project came from the former CEO of Goodwill in Chillicothe, Marvin Jones. Jones mentioned the tri-share program Michigan implemented in 2021 that distributes the cost of childcare equally between the employer, employee and the state.
Johnson liked the idea but saw many aspects of Michigan’s program that he would want to work differently. He mentioned wanting something simpler than the many facilitator hubs Michigan uses as the medium between the employer and the government. Johnson also wished to expand the coverage, allowing more people to access the program.
After drafting the bill, Johnson met with Sen. Michele Reynolds and decided to model the program after the already existing TechCred program in Ohio. The program reimburses employers in Ohio for the costs associated with training current and future employees in technological credentials.
“(Reynolds) said what Michigan is doing is far too cumbersome, and let's keep it as simple as possible,” Johnson said. “We've already got a program that's working here for employers as far as their training grants, let's just model after TechCred and call it ChildCred, and that's exactly what we have done.”
According to a memo regarding the program from the Department of Children and Youth, employers and employees must both be located in Ohio. The childcare center must also be licensed under the Ohio Revised Code or be certified by a county department of job and family services via the Ohio Revised Code.
According to a 2023 Ohio population projections report, the population across the state is expected to drop 5.7% by 2050 if there are no changes to the current rates of fertility, mortality and migration.
Johnson said he is worried about the population decline, and as a firm believer in family values, he wants to reward Ohioans for having families instead of punishing them.
Childcare deserts, counties that have little to no access to childcare facilities, are another pressing issue for Ohioans, according to Johnson. 40% of Ohioans live in a childcare desert, according to Policy Matters Ohio.
According to Johnson, the issue is prominent in the Southeast Ohio region and makes it hard for families in Appalachia to access places to watch their children. He cited that as another issue the state government needs to address.
“In my opinion, the state needs to do more than what we're doing right now to try to help establish childcare centers,” Johnson said. “And maybe look at grants for people who want to get into the childcare business.”
The program began accepting applications Sept. 1 and will continue until May 1, 2026.
“I hope this program is so popular we run out of money within the first three months, and then we could go back to the controlling board, if the controlling board sees fit to put more money into the next budget,” Johnson said.
