Childcare
CHILDCARE AS ECONOMIC INFRASTRUCTURE
A robust childcare system is not a social amenity – it is critical economic infrastructure. In Wyoming, the shortage of available, high-quality childcare is a significant barrier to workforce participation and state economic growth. At the Wyoming Business Council (WBC), we recognize that this is fundamentally a business problem with business solutions.
The WBC has spearheaded a collaborative, statewide effort to dismantle the barriers preventing childcare providers from succeeding in our communities.
Collaborative Team and Partners
We’ve cultivated a robust network of partners – our Team of Thousands – committed to addressing this challenge. Key partners include:
- Wyoming Department of Family Services (DFS)
- Wyoming Department of Workforce Services (DWS)
- Maternal and Child Health Unit (MCH) at the Wyoming Department of Health (WDH)
We are also proud to partner with over 25 additional state agencies, nonprofit organizations, and business and community leaders to drive systemic change
Interagency Working Group on Childcare
The WBC convened the Interagency Working Group on Childcare in Spring 2023 to address two core issues:
- Childcare businesses are often undervalued; they are overlooked as essential, revenue-generating, economy-supporting businesses due to their focus on caregiving services.
- Lack of access to childcare constrains growth; insufficient supply limits business expansion and leads to a decline in workforce availability.
The state of Wyoming is grappling with a historically tight labor market where demand outstrips supply, even as many Wyoming workers are in childcare deserts and available slots dwindle. This makes insufficient childcare supply a critical business problem that demands an interagency, business-focused approach.
Goals & Next Steps
Our strategic focus is shifting toward maximizing engagement with the private sector. The next phase of the Interagency Working Group centers on increasing partnerships with businesses and major employers across Wyoming.
Many companies have already reached out, seeking guidance on how their investment – whether time, capital, or resources – can be most effectively utilized to solve the childcare crisis.
- Guiding Business Investment: We direct interested employers to the Childcare Navigation Tool. This critical resource helps businesses calculate the potential return on investment (ROI) and, more importantly, clarifies the specific needs of local childcare providers. The goal is to ensure business support directly translates into improved operational effectiveness and high-quality care for Wyoming’s youth.
- Employer Action Plan: The imperative for increased childcare access has been championed by the Workforce Committee at the Wyoming Business Alliance (WBA), including developing a workforce guidebook for WBA members that details concrete ways for employers to become actively involved in supporting their workforce’s childcare needs.
INTERESTED IN BECOMING PART OF THE MOVEMENT?
Childcare as a barrier to workforce participation
The lack of available, quality childcare is a direct constraint on Wyoming’s labor pool and economic potential. Our data confirms the urgency of this challenge.
Evidence of Economic Impact
Research conducted by the Wyoming Business Council (WBC) in collaboration with the Harvard Growth Lab, the Wyoming Department of Workforce Services (DWS), and the Wyoming Department of Family Services (DFS) underscores the critical nature of the issue:
- Workforce Drain: More than 10,000 Wyomingites may be out of the workforce because they lack access to necessary childcare.
- Supply Decline: The overall number of childcare providers in the state has significantly declined, dropping from 721 in 2014 to 527 in December 2024.
- Rural Strain: Rural areas are disproportionately impacted, where private childcare centers face steep challenges related to low profit margins and persistent staffing shortages.
Launching the Interagency Working Group
To translate these urgent findings into targeted action, the WBC convened the Interagency Working Group on Childcare in Spring 2023, collaborating closely with DFS and DWS.
This group, which rapidly expanded its reach to include additional state agencies, nonprofits, and business leaders, meets regularly to drive systemic solutions. The working group identified and focused on four core, strategic initiatives:
- Childcare Startup Grants: Increasing supply, especially in childcare deserts.
- Business Support Services: Ensuring providers operate as robust small businesses.
- Increased Access to Subsidies: Supporting the childcare workforce and working families.
- Local Zoning and Regulation Improvements: Removing administrative barriers to entry and expansion.
Interagency Childcare Working Group Announces Grant Program to Improve Access to Childcare
Missing middle/workplace housing
The missing middle refers to buildings with multiple units, such as duplexes or triplexes. These buildings have typically been illegal to build since the 1940s so they are considered “missing” from new building stock. Some of the characteristics of this type of housing include walkability, smaller building footprints, and smaller units. These housing types are typically more marketable because they are more affordable.
Age/condition of housing
Because the private sector struggles to construct new homes in the “missing middle”, the condition of the existing housing stock declines. Some of these problems can be addressed through code enforcement. Many towns have properties that are considered an eyesore. It may be that city official are hesitant to give property owners a citation, or they just may not understand how to begin addressing the issue.
Shortage of homes to rent
Since new construction has halted on homes in the missing middle, there is more competition for rental properties and prices are higher for existing rental properties. In addition, developers are not constructing properties designed for renting, such as duplexes or multi-family dwellings.
Housing is not seen as a public sector issue
Traditionally, housing has been seen as the domain of the private sector. Politicians have only seen housing as an issue of the government in the form of public housing. Constituents in communities nationwide are calling on county elected officials to reduce the burdens of housing costs that force residents to relocate to more affordable neighborhoods. Although housing affordability is a shared priority across the country, available options to promote affordability vary widely between counties.
What to do about the lack of attainable housing?
This issue is more complex than just involving housing. Therefore, attainable housing is so important in the overall picture of economic development. The discussion of job creation in communities must also involve the discussion of adequate housing for a community. Available housing for all income groups helps a community retain jobs and helps business owners retain quality employees.
One way to address the condition of properties is through proper code enforcement. This could be as simple as strengthening already existing property maintenance ordinances or it could be bringing in a code enforcement official. While this may take some training or recruitment on the front end, the long-term benefit of improvement of distressed neighborhoods and a long-term plan or guideline to maintaining properties will be beneficial to creating a sustainable community development plan.
This problem needs a multi-prong approach. It may involve a partnership with local developers, or individuals within your community. It may be that a non-profit within your community take the lead on this.
Advocacy through local government, as well as non-profit statewide organizations, is an important part of putting housing issues in front of politicians. National Association of Housing and Redevelopment Officials (NAHRO) is the national organization for housing that provides many resources for advocacy.
A newer solution is developing a community land trust. A community land trust is a nonprofit organization that is the steward of community assets and provides attainable housing opportunities for families. Their primary goal is ensuring families can purchase affordable homes, these homes remain affordable should they go back on the market, and to offer educational opportunities for the families to help them maintain their properties and grow as homeowners.
This “shared equity homeownership” works through households who have an income below the local AMI but are still able to qualify for a mortgage. They purchase the home at an affordable price and lease the land from the Community Land Trust. If the homeowners decide to sell, they can keep all the equity plus a portion of the increase in value. The Community Land Trust manages the resale process, to ensure the home remains attainable. There are nearly 250 Community Land Trusts in the United States; 79% of residents are first-time homeowners, and 82% of residents report income less than 50% of the area median.
What happens if a lack of attainable housing isn’t addressed?
f employees have no place to live where they work, it will be harder to draw business into towns. Job creation is strongest if workers reside in the community. Employees who can live near their place of employment are better able to report to work on time while also having time to improve their job skills, get an education, or spend time with their families.
Neighborhoods will continue to become distressed and community pride will decrease. For the continued success of your town, the condition of housing and code enforcement is a vital part of the picture.
Childcare Startup Grants
Recognizing that increased childcare supply is crucial for Wyoming’s workforce, the Interagency Working Group initiated the Childcare Startup Grant Program in January 2025. This program is designed to inject capital into the system, specifically targeting childcare deserts to encourage the launch of new businesses and expand the capacity of existing high-quality providers.
APPLICATIONS ARE OPEN UNTIL MARCH 1, 2026, FOR THE 2026 CHILDCARE START-UP GRANT CYCLE.
Key Impact and Results of the 2025 Grant Cycle
Investment: In the first two rounds, the working group awarded $228,000 to 24 grantees.
New Capacity: Early results show the funds have supported the creation of 76 new childcare slots at established facilities and helped launch new businesses serving 39 additional children in their first year.
Strategic Funding: Grant funds were strategically braided together from multiple partners, including the Wyoming Department of Family Services, the Wyoming Women’s Foundation, the Maternal and Child Health Unit at the Wyoming Department of Health, and the Ellbogen Foundation.
Business Support: Our Core Value
The most significant impact of the program is the comprehensive business support network made available to the entire industry.
Support for All Applicants: Critically, all 84 applicants – not just those who received funding – were immediately connected to a curated network of business development, technical assistance, and professional learning services.
Free and Accessible Resources: This support, offered free of charge, included:
Direct referrals to the Wyoming Small Business Development Center (SBDC) and its expert on early childhood education businesses, Devan Costa-Cargill.
Access to business plan templates, microloan programs, business mentors, and mental wellness programs offered by the Wyoming Women’s Business Center.
Connections to the University of Wyoming’s Professional Learning Collaborative for curriculum, growth planning, and classroom resource assistance.
Continuous Improvement: The application process served as a vital feedback loop. Follow-up interviews with applicants helped the working group gain direct insights into provider needs, the value of various resources, and how to continuously enhance the state’s support system for childcare business owners.
Continued support was also offered through follow-up interviews with applicants and direct communication with applicants who showed special interest in growth or expressed a desire to learn from the application process. During the interviews, the working group learned more about how providers are accessing resources, what resources are most valuable to providers, and what resources might be needed in order to enhance or improve their businesses.
BUSINESS SUPPORT SERVICES
Increased Access to Business Support Services
Our work on the Startup Grant Program provided a crucial insight: many childcare providers – who are, first and foremost, small business owners – had not accessed the state’s existing, mostly free, business support resources. This lack of access was identified as a critical barrier to their stability and growth.
To address this, we launched a targeted initiative to Improve Access to Business Support Services.
- Strategic Partnership: We intensified our collaboration with the Wyoming Small Business Development Center (SBDC), recognizing their expertise as essential for this industry. The SBDC’s immediate response was to strategically improve the marketing of their training and develop content specifically tailored for childcare businesses.
- Targeted Training: Within one month of this concentrated effort, the SBDC developed and scheduled a highly relevant 3-part webinar series titled, “How to Start an In-Home Childcare Business.”
- Barrier Removal: The Interagency Working Group is committed to removing administrative friction. To simplify the search for assistance, the Wyoming Department of Family Services (DFS) developed a one-pager detailing available free business support services and their contact information.
SUBSIDIES FOR CHILDCARE WORKFORCE
Increased Access to Subsidies and Data Infrastructure
Technology and data are vital to creating a functional childcare market that supports the workforce. The Interagency Working Group actively supported two key developments that significantly boost efficiency and inform future investment.
Enhancing Subsidy Access with ECARES
A major win for both childcare businesses and working families was the launch of the Wyoming Department of Family Services’ (DFS) ECARES system in Summer 2025. The working group’s collaboration helped a dedicated team of DFS professionals overcome final barriers to get this essential virtual system online.
ECARES is a powerful web-based platform that makes the process of securing subsidies and payments dramatically more accessible:
- For Providers (Businesses): ECARES enables efficient management of enrollment for families receiving assistance, allows providers to accept and track assistance payments electronically, and serves as a hub for monitoring professional training, licensing requirements, and compliance information.
- For Parents (Workforce): Families can use ECARES to quickly check their eligibility for childcare assistance and easily search for and review local providers, streamlining the critical step of securing care.
Leveraging Data for Strategic Investment
To ensure future decisions are informed by robust economic metrics, data collection and interpretation became a major priority.
In 2025, supported by Preschool Development Grant funds, the State established the Early Childhood Integrated Data System (ECIDS). The Wyoming ECIDS is a sophisticated compilation of Early Childhood Education data drawn from state, local, and national sources. This crucial infrastructure empowers DFS to:
- Anticipate Demand to better forecast and budget for requested funds and provider capacity.
- Optimize Support to make data-driven decisions that enhance resources for working parents and strengthen the industry’s ability to support workforce participation.
HOME-BASED CHILDCARE ZONING
Reducing Regulatory Friction
Regulatory barriers pose a significant challenge to growing the childcare supply, especially for home-based operators who offer flexible and essential services. Burdensome zoning restrictions often hinder or entirely prevent their establishment, slowing business formation.
- Policy Advancement: The recent passage of HB0126 was a critical positive step, officially designating childcare as a residential use of property. This legislation helps clarify their status as legitimate home-based businesses.
- Persistent Obstacles: Despite this progress, other zoning obstacles persist at the local level. Specifically, prospective home-based operators across the state continue to face setbacks due to neighbors’ ability to effectively veto their operations.
- Next Steps: The Interagency Working Group supports continued efforts, particularly at the local level, to eliminate unnecessary zoning restrictions that obstruct the creation and expansion of these vital small businesses.
FINANCIAL TOOLS & resources
The Wyoming Business Council and the Interagency Working Group on Childcare is committed to ensuring childcare businesses have the capital and knowledge needed to grow. This section provides direct links to grant programs, financial tools, and business development resources designed to stabilize and expand the childcare supply across Wyoming.
Resources for Childcare Businesses
Running a Successful In-Home Childcare Business
This webinar series was hosted by Devan Costa-Cargill, Northwest Regional Director for the Wyoming Small Business Development Center. Costa-Cargill is a member of the interagency working group and is a remarkable resource for business support services and improving access.