Twenty-one Ohio employers are now helping their workers pay for child care, signing on to a new state pilot that literally splits the bill. In the first nine months, 144 children have been enrolled in the Child Care Cred program, which divides child-care costs three ways: 40 percent from parents, 40 percent from employers, and 20 percent from the state, according to state figures.
As reported by Cleveland.com, the early adopters include child-care providers, a faith-based organization, at least one manufacturer, and Mercy Health in Allen County. Many of those employers are chipping in roughly $125 to $200 per child per month to make the cost split work, and the state confirms the program has brought in 21 businesses and 144 children since applications opened last fall.
How the Child Care Cred Works
The Child Care Cred was set up in the 2025 state budget with a $10 million appropriation and is run by the Ohio Department of Children and Youth. Applications opened Sept. 1, 2025, and will be accepted through May 1, 2026, with funding available through June 30, 2026, according to guidance from the Ohio Department of Children and Youth.
Approved families can enroll their kids in licensed child-care programs. Under the setup, employers and employees each pay their 40 percent share directly to the provider, while the department bills the state’s 20 percent share every month.
Child care in Ohio averages about $15,000 per child each year, DCY Director Kara Wente told Cleveland.com. That means an employer’s share can run around $6,000 per child annually, a serious expense that state officials and participating companies say is worth testing as a way to keep workers on the job and ease scheduling headaches. The program is voluntary and set up as a temporary pilot to see whether these employer partnerships actually move the needle.
Federal Tax Credit and Other Incentives
Employers who help pay for child care may be able to soften the hit through a federal employer-provided child-care tax credit. The Internal Revenue Service has guidance on a credit that was historically capped at $150,000 per employer per year, according to the IRS.
Recent federal changes expand and reshape the employer credit for tax years after 2025, according to analysis by the Congressional Research Service.
What Advocates Say
Child-care advocates and local officials say the $10 million, one-year pilot is a start, but only for a small share of the families who are currently priced out of care. They argue that lasting progress will require long-term funding and broader coverage, experts told the Ohio Capital Journal.
Some communities are not waiting around. Counties and local chambers have been experimenting with their own employer partnerships, including Lorain County’s North Coast CARE, which splits a $400 benefit between employers and the state to help families cover costs. That local effort has been described as a new $400 child-care lifeline, showing how regional programs are trying to scale up assistance.
State officials say they will study the results of the Child Care Cred pilot before deciding whether to propose a more permanent support system. Employers and employees who want in must submit a joint application by May 1, 2026. Questions can be emailed to [email protected].
For full eligibility rules and step-by-step application details, the department has a Q&A and forms available through the Ohio Department of Children and Youth.
