Chamber-Led Child Care Collaborative Provides Recommendations to Grow Kentucky’s Workforce and Economy

The Kentucky Chamber and members of the Kentucky Collaborative on Child Care presented research and policy recommendations to the Interim Joint Committee on Families and Children on August 27, emphasizing the workforce and economic importance of child care access.

The testimony was built on a new package of three reports released by the Chamber. A Workforce Solution that Works provides original estimates of how solving child care challenges could grow Kentucky’s workforce and economy. Child Care Gaps in Kentucky maps where supply falls short of demand across the state. And A Foundation for Action outlines consensus-driven policy recommendations developed by the Kentucky Collaborative on Child Care.

Until now, Kentucky has lacked a full picture of its child care challenges, the Chamber said when releasing this research.  This new body of work aims to provide that clarity and offer lawmakers a policy framework for the 2026 legislative session.

Among the findings, expanding access and affordability could enable 16,000 to 28,000 Kentucky parents to join or return to the workforce, lifting the state’s working-age participation rate out of the bottom ten nationally and generating $599 million to $1.1 billion in new wages and state tax revenue.

Kentucky Chamber Vice President of Policy Dr. Charles Aull said, ” Child care access is one of the most direct levers Kentucky can pull to increase labor force participation.” He added that Kentucky’s working-age participation rate ranks among the lowest in the nation, and 16,000–28,000 workers could close nearly two-thirds of the gap with the national average.

A Collaborative Effort

Formed after the 2024 legislative session, the 40-member Kentucky Collaborative on Child Care spent the past year developing 37 consensus recommendations to strengthen Kentucky’s child care system. The group brought together employers, educators, child care providers, nonprofits, faith leaders, and advocates to find common ground.

Kentucky Chamber Senior Vice President of Public Affairs Kate Shanks emphasized the value of the collaborative approach: “The Chamber is a convener, and we spent the past year building a strong foundation for child care policy that reflects not just business priorities, but solutions shaped by educators, advocates, providers, and employers.”

Century Aluminum Senior Vice President of Human Resources Kenneth Calloway told lawmakers the lack of accessible child care directly affects competitiveness and productivity in key industries, including his.

“Our facilities, out of necessity, have to run 24/7. We require a highly skilled, independent workforce, and when that’s disrupted, including by lack of child care access, it’s not just our company that feels that impact. It’s the community, the supply chain, and the local economy. It drives higher turnover, which includes higher costs in hiring and training. It creates lost productivity when parents miss shifts or leave the workforce altogether,” he said. “And it makes it difficult to attract skilled talent into our facilities because sometimes child care isn’t as available, and the options are scarce — and then it reduces competitiveness compared to other regions where it’s more available.”

“Families who are trying to access child care really face two significant challenges: availability and affordability,” said Metro United Way Chief Policy Officer Liz McQuillen.  

Citing a gap assessment the Chamber conducted in partnership with the Buffett Early Childhood Institute, McQuillen noted that in 37 rural counties, more than half of children potentially needing care lack available slots. She also underscored the financial strain, explaining that families with multiple children in regulated child care may spend 20 to 40 percent of their income on care.

Key Recommendations

The Collaborative’s recommendations, published in its May 2025 report, focus on eight priority areas:

1. Improve Child Care Data
2. Streamline Regulations and Encourage Innovation
3. Encourage Community Engagement
4. Encourage Employer Engagement
5. Support and Promote Quality
6. Support Working Families
7. Strengthen the Child Care Workforce
8. Provide Critical Resources

To learn more and access the Chamber’s research and resources, visit kychamber.com/childcare