Tennessee General Assembly passes two bills to expand access to childcare options

(April 2, 2025) - The Tennessee General Assembly has unanimously passed two significant childcare bills, HB105/SB1286 and HB106/SB1288, aimed at expanding childcare access across the state. These bills, set to be signed by Governor Bill Lee in the coming weeks, will enhance funding opportunities for childcare agencies and provide clear licensure exemptions for casual care options.

The first bill passed, HB105/SB1286, expands the criteria for childcare agencies to access funds from the Child Care Improvement Fund, which includes TDHS Non-Profit/Employer Workforce (NEW) Care Partnership grant opportunities. Previously available to non-profit agencies only, now all types of licensed childcare providers are eligible to submit a proposal to expand licensed capacity through partnership with an employer.  These funds can be used to address capital improvements and operating expenses associated with increasing capacity in order to serve the employer’s workforce.

When it comes to regular childcare services, it is important for parents to look for the license to confirm that the provider is monitored for compliance with health and safety requirements.  Some types of care do not fit the model for licensure.  HB106/SB1288 was unanimously passed providing greater clarity and accessibility to childcare licensing exemptions, allowing providers and families to better understand exempt qualifications under the law.

Key provisions of this bill include:

• Legal allowances for parent’s night out activities, including lock-in events.
• Expanded summer camp exemptions to include fall and spring school breaks.
• Maintenance of previous exemptions, including parents’ day out, casual care, educational care, recreational care, and camps while clarifying prior regulatory ambiguities.
• Registration materials and a full list of programs exempt from licensing requirements will be updated on the TDHS website prior to the July 1st effective date.

“The department is incredibly appreciative of the Governor and General Assembly’s support of the childcare industry in Tennessee to ensure that families have access to safe, healthy, and developmentally rich childcare," said TDHS Commissioner Clarence H. Carter.  “These bills will improve access and quality of care in Tennessee.”

Jude White, TDHS Assistant Commissioner of Child Care and Community Services added, “Expanding access to innovative funding strategies and improving regulatory clarity will empower childcare providers across Tennessee. These changes ensure that families have greater access to childcare options that meet their needs, supporting both children’s development and the Tennessee workforce.”