S.B. No. 2979 establishes a Child-Care Innovation Pilot Program under a new Chapter 320 in the Labor Code, aimed at enhancing the availability of quality, affordable child care in designated regions of Texas to meet workforce needs. The program will be administered by the Texas Workforce Commission, which will collaborate with local workforce development boards, employers, and child-care providers to fund innovative projects through grants. The bill emphasizes the importance of measurable performance goals, stakeholder engagement, and strategic planning to ensure that the child-care services align with local workforce demands.

The legislation sets specific eligibility criteria for child-care providers to qualify for grants, including accreditation and quality standards. It requires local workforce development boards to submit quarterly reports on grant fund usage and progress towards performance goals. The Texas Workforce Commission is also tasked with evaluating the program's effectiveness and reporting findings by December 1, 2026. The chapter will expire on September 1, 2029, and the implementation of the program is contingent upon legislative appropriations, with the Commission having the option to use other available funds if specific funding is not allocated. The bill is set to take effect on September 1, 2025, allowing for a transition period before the new provisions are enacted.

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