Senate Bill 580 aims to enhance support for nonprofit and faith-based child care programs in Tennessee by establishing a new grant program under the governor's office of faith-based and community initiatives. The bill mandates that at least one-third of the funds appropriated to the office each year be allocated for these grants, which are specifically designed for child care programs serving children aged four years and younger. To qualify for the grants, programs must be licensed as child care agencies, be in good standing with the Department of Human Services, and operate on an income-based pricing model that charges families no more than seven percent of their household income for child care. Additionally, priority for funding will be given to programs located in designated "child care deserts," defined as areas with a high number of children under five and insufficient licensed child care options.

The executive director of the office will oversee the grant application process and is required to report annually to the General Assembly and the Office of Legislative Budget Analysis regarding the availability and distribution of grant funds. This legislation is set to take effect on July 1, 2025, ensuring that the necessary framework is in place to support child care initiatives in underserved areas of the state.