"It kept almost 10,000 children on scholarships. And so that was great. But it did not add additional children due to the increase in the rise in cost of care," said Lyn Lucas, associate director of early childhood education at Children at Risk, a nonprofit research and advocacy group.

The funding strain was already visible in September, when state data showed Texas had lowered its 2027 child care subsidy target to 132,689 average children served per day, down from the original 2026 target of 146,736. The reductions vary across North Texas: Dallas County's target fell 12.2%, compared with 4.3% in Tarrant County, while North Central Texas, including Collin and Denton counties, saw its target increase 7.1%.

But money is only part of the problem. A Children at Risk analysis in April identified 17 child care desert ZIP codes in the Greater Dallas workforce region, including 12 that have remained deserts for at least three years. The organization defines a child care desert as an area where the number of children under six with working parents exceeds available licensed child care capacity by more than three to one.

Lucas said the shortages are concentrated in West Dallas, South Dallas and southeast Dallas, while child care deserts in Tarrant County are more geographically dispersed. "So the need is a lot deeper in the lower-resourced communities," she said.

Beyond funding, Children at Risk is calling for changes to how Texas oversees and administers child care programs. Lucas said families and providers must navigate multiple state agencies with different requirements, applications and deadlines, creating additional barriers to assistance.

"Families are negotiating between different agencies, between different systems and programs and timelines, but often having to turn in the exact same things," Lucas said.

The organization is advocating for better coordination among agencies, streamlined applications and improved technology, alongside a more consistent source of funding. Lucas said the administrative burden can also discourage providers from participating in programs designed to support families, including child care subsidies and Texas Rising Star.

The priorities are reflected in recommendations submitted to the Texas Sunset Advisory Commission, which is reviewing several agencies involved in child care services. Separately, a governor's task force examining the state's early childhood education system is expected to submit its recommendations to the Legislature by Dec. 1.

Lucas said one of the biggest questions is how Texas could create a more coordinated system with clearer decision-making authority. "Does that mean that we move all of child care into its own agency? Does it mean that we have an additional person who's able to negotiate that? I don't know, but we don't know how Texas wants to go about doing that," she said.

The organization also wants a long-term, consistent funding source to expand access rather than relying on periodic investments. The recommendations could help shape discussions during the 2027 legislative session, though lawmakers have not committed to adopting the proposed changes.