Child Care Resources for the Kentucky Business Community

The Employee Child Care Assistance Partnership

The Employee Child Care Assistance Partnership is an innovative way for Kentucky employers to help workers afford quality child care and attract and retain top talent. Through this program, an employer can partner with the state to help reduce the out-of-pocket cost of child care for their employees. If the employer is willing to contribute financial assistance that goes directly to the employee’s child care costs, the state will match that assistance. For employers, this creates key opportunities:
 
  • A unique talent attraction and retention tool that is not available in most other states
  • A public-private partnership approach to providing a powerful employee benefit
  • An investment in their current and possibly future workforce
Survey data shows that working parents strongly favor employer-provided child care benefits.
 
Employees benefit from the program by seeing their out-of-pocket child care cost reduced, which helps them afford quality care for their kids and keep them in the workforce and with their current company. 
 
Child care providers benefit through reliable payments from employers, the state, and their clients.
 
Finally – and most importantly – kids benefit through consistent access to high-quality care. 
 
The Employee Child Care Assistance Partnership is a win-win for employers, workers, providers, and kids. 
 
$2 million in matching funds are available fiscal year – so apply now! 
 
Learn more and APPLY NOW for the Employee Child Care Assistance Partnership on the Cabinet for Health and Family Services’ website.
APPLY NOW

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 works together with the employee and their child care provider to submit the necessary information to the Kentucky Cabinet for Health and Family Services. Visit: https://kynect.ky.gov/benefits/s/eccap-program

  • 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.

 

Watch a video with the Kentucky Cabinet of Health and Family Services that details the program:
 

What Should Employers Do To Get Started?


  • 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. 
     

Employer Testimonials

CVG Airport:

Planters Bank:


 

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.