Texas Senate Bill SB1739

Texas 2025 - 89th Regular

• Filed: 2/27/25

Caption

Relating to use and operation of the childcare protection and enhancement fund.

Impact

The legislation is expected to have a positive impact on state childcare laws, by creating a dedicated source of funds aimed at improving childcare availability and affordability. With the establishment of this fund, Texas can better support families and foster a childcare infrastructure that meets the needs of its citizens. Moreover, the fund will operate outside the state treasury and will not be subject to typical administrative costs associated with state agencies, ensuring that the allocated resources are directed explicitly to enhance childcare services.

Summary

SB1739 establishes the Child Care Protection and Enhancement Fund, intended to both increase the capacity of childcare services and enhance the rates of subsidized childcare in Texas. This fund will be managed by the Texas Treasury Safekeeping Trust Company and administered by the Texas Workforce Commission. The initiative is designed to address the growing need for quality childcare services by ensuring that families have access to affordable and subsidized options. Through strategic investment and proper management, the state aims to bolster this sector significantly.

Contention

Notably, the bill contains specific stipulations that prohibit the use of the fund for administrative costs, salaries, or operation expenses of any state agency. This measure has been put in place to ensure that all resources are utilized solely for the intended purposes of increasing childcare capacity and rates. The funding mechanism relies on interest earned from the fund, which could raise discussions about the long-term sustainability of this financial strategy. Additionally, its effectiveness hinges on voter approval of a constitutional amendment proposed within the same legislative session.