As Introduced 136th General Assembly Regular Session H. B. No. 41 2025-2026 Representatives White, A., Roemer Cosponsors: Representatives Troy, Deeter, Williams, Odioso, Robb Blasdel, Young, Plummer, Johnson, Ray A B I L L To establish certain child care grant programs, including those related to child care capacity and learning labs, and to make an appropriation. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: Section 1. All items in this act are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all operating appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027. The operating appropriations made in this act are in addition to any other operating appropriations made for these fiscal years. Section 2. 1 2 3 4 5 A KID DEPARTMENT OF CHILDREN AND YOUTH B General Revenue Fund 1 2 3 4 5 6 7 8 9 10 11 12 H. B. No. 41 Page 2 As Introduced C GRF 830412 Child Care Grants $10,250,000 $10,250,000 D TOTAL GRF General Revenue Fund $10,250,000 $10,250,000 E TOTAL ALL BUDGET FUND GROUPS $10,250,000 $10,250,000 CHILD CARE GRANTS (A) Of the foregoing appropriation item 830412, Child Care Grants, $10,000,000 in each fiscal year shall be used by the Department of Children and Youth to administer, in consultation with the Department of Development and JobsOhio, a grant program to assist employers in retrofitting or equipping their onsite or near-site child care facilities, in building new child care facilities, or in partnering with child care providers, government entities, nonprofit organizations, or others on initiatives to create child care capacity within their communities to support the workforce. The program's aim shall be to increase the availability of child care in communities across Ohio and to aid in business growth and recruitment in this state. Under the program, any entity may apply for a grant, but, in awarding grants, the Department of Children and Youth shall give priority to the following applicant types: employers seeking child care for their employees' children; government entities, nonprofit organizations, and other community partnerships seeking to expand child care capacity for the workforce in the communities they serve; or any combination of these applicant types. To be eligible for an award, an applicant must demonstrate that the applicant's facility or applicant's partner provides, or intends to provide, publicly funded child care and participates, or intends to participate, in the state's 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 H. B. No. 41 Page 3 As Introduced tiered quality rating and improvement system. An applicant also shall submit a plan for ongoing sustainability to support its capacity expanding initiative and shall identify the needs and gaps its initiative would address. Not more than $750,000 shall be awarded to each grant recipient, and the recipient shall use the award only for the purposes described in this division. In addition, as part of the program and in an effort to aid business growth and recruitment in this state, the Department of Development, in coordination with JobsOhio and the Department of Children and Youth, shall create additional incentives for new or existing businesses to expand child care capacity or child care support for the state's workforce. (B)(1) Of the foregoing appropriation item 830412, Child Care Grants, $250,000 in each fiscal year shall be used by the Department of Children and Youth to contract with an entity to establish a cohort comprised of recipients of child care-related grants awarded by the Department, create an Employer-Based Child Care Co-Design Learning Lab, and develop tools and resources in order to train and support future child care grant applicants and other employers, government entities, or nonprofit organizations interested in expanding child care capacity. (2) The entity selected shall coordinate education and knowledge-sharing among the grant recipients and cohorts, as well as provide technical assistance to these entities. The entity shall collaborate with grant recipients to collect and measure data, outcomes, and best practices, all as prescribed by the Department of Children and Youth. The entity shall prepare a report compiling the foregoing data, outcomes, and best practices and submit copies of it to the Department, Governor, 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 H. B. No. 41 Page 4 As Introduced and members of the General Assembly. The Department shall assist the entity in making the report available on the web site maintained by the Department. (3) The entity selected also shall establish an employer- based child care co-design learning lab program. The program's aim shall be twofold: to assist employers, including businesses, government entities, and nonprofit organizations, in learning how to form partnerships and best fund, including by utilizing tax credits, grants such as those available under this section, and employer contributions and other opportunities as necessary to create onsite or near-site child care spots or facilities and to identify other innovative strategies to expand child care capacity in their communities. The program shall prioritize rural and underserved areas of this state. Each design lab may be regionally based and provide four to six months of intensive learning to employer participants. Participants shall learn processes and develop knowledge and competencies to plan, organize, and find operations partners, to create long-term financial modeling and business plans, to partner with community stakeholders and organizations, and to apply for grants, including those awarded by the Department. The program shall emphasize the importance of operations partners, shall provide participants with sample requests for proposals, and shall encourage engagement with community and regional workforce leadership. (4) Additionally, the entity selected shall design an employer tool kit and other resources as determined by the Department of Children and Youth, in consultation with JobsOhio and the Department of Development, that may be used to educate employers on issues impacting, and solutions improving, employee access to child care. The tool kit shall include, but not be 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 H. B. No. 41 Page 5 As Introduced limited to, all of the following topics: (a) Strategies to expand child care capacity; (b) Any information, competencies, best practices, and other resources identified in the co-design lab program described in this division; (c) Procedures for applying for available child care- related federal, state, and local tax credits and creating child care-related flexible spending accounts or other employee benefit supports; (d) Any other resources identified by the Department of Children and Youth, in consultation with JobsOhio and the Department of Development. The Department of Children and Youth shall make the tool kit available on the web site it maintains and shall otherwise distribute copies of the tool kit to businesses, government entities, nonprofit organizations, and other entities as determined by the Department. Section 3. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the manner in which appropriation accounts shall be maintained. Expenditures from operating appropriations contained in this act shall be accounted for as though made in, and are subject to all applicable provisions of, the main operating appropriations act of the 136th General Assembly. 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124