A provision in Kansas's new budget bill creates a direct funding source that child care facility owners and operators may not know about.
Most Kansas child care owners don't realize that HB2513—the state's supplemental and multi-year appropriations bill—includes a $6 million housing grant program that may apply to them.
Here's what's buried in the bill and why it matters to your business.
Section 65 of HB2513 (found on page 73) appropriates $6 million in grant funds to be administered by the Kansas Department of Commerce. These funds are designated for moderate income housing development. At least 50% of the total must go to rural communities.
The critical detail for child care operators: the companion housing revolving loan program (Section 67) explicitly names small for-profit and nonprofit builders and developers as eligible borrowers and grantees. This means child care facility owners and operators who are developing or expanding housing—whether for staff, families, or as part of a larger facility project—can apply directly.
This is not a loan program requiring repayment. These are grants.
Child care operators considering facility expansion, renovation, or new construction that includes a housing component are the primary beneficiaries. This includes:
• Operators building staff housing to address workforce shortages
• Developers creating mixed-use facilities that combine child care with residential units
• Rural child care providers seeking to support community housing needs alongside their core business
• Nonprofits running child care services that want to develop moderate income housing
Small operators—the explicit focus of this program—have equal standing with larger developers in the application process.
Funds become available July 1, 2026, for the fiscal year ending June 30, 2027. This means applications and awards will likely begin rolling out in summer 2026. Operators should begin preliminary planning now if they have a housing component in mind for their facility.
Contact the Kansas Department of Commerce directly to learn about application requirements, deadlines, and specific eligibility criteria for your project type. The department will handle grant administration and can clarify how child care facility projects fit within the program's moderate income housing definition.
Because this is a new appropriation with specific rural and small-developer focus, early inquiry gives you an advantage in understanding how to structure a competitive application.
Source: HB2513, Section 65, page 73; Section 67 (housing revolving loan program eligibility). Kansas Legislature.