The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act which was passed in August 2022 provides $52.7 billion in federal funding to revitalize the U.S. semiconductor industry. The CHIPS and Science Act is designed to boost domestic semiconductor manufacturing, solidify America’s technological leadership, and promote U.S. economic and national security.
These major investments in the semiconductor workforce are also intended to create and support good-paying jobs across the industry. In fact, the CHIPS Program Office estimates that building and operating the semiconductor fabrication facilities eligible for awards under the first funding opportunity could require more than 100,000 construction workers to build the facilities and 90,000 workers to operate them. As a result, recruiting, training, and retaining a large, skilled, and diverse workforce will be critical to strengthening the U.S. semiconductor ecosystem – and child care is a critical component.
What are the CHIPS ACT child care requirements?
Applicants requesting Direct Funding over $150 million must submit a plan to provide access to child care for facility and construction workers, e.g., through on- or near-site child care, pre-arranged agreements with existing child care providers, child care subsidies, or other similar measures. Further, all applicants, regardless of funding, are also encouraged to submit child care with their application. The instructions stipulate that child care should be:
- Affordable: Costs should be within reach for low- and medium-income households
- Accessible: Care should be provided at a convenient location with hours that meet workers’ needs
- Reliable: Care should grant workers confidence that they will not need to miss work for unexpected child care issues
- High-Quality: Care should be provided in a safe and healthy environment that families can trust and that nurtures the healthy growth and development of children.
Workforce development planning guidelines
Updated Workforce Development Planning Guidelines were released on March 27, 2023 by Commerce for submitting a workforce development plan, including child care plans. Child care plans for applicants seeking funding can include:
- Employer-sponsored access to caregiving marketplace
- Backup Care
- Pre-arranged agreement with existing child care providers
- Partnering with off-site providers
- On or near-site child care
- Cash Assistance (vouchers/subsidies)
Applicants can also explore Federal resources available for employer-provided care, like Dependent Care Flexible Spending Accounts (DCFSA).
The Department recognizes that there is no one-size-fits-all child care solution. As a result, applicants are encouraged to propose solutions that are customized to meet the goals, budget and needs of their workforce. The Department also encourages applicants to partner with organizations who have experience administering child care programs.
How Care for Business can help your organization meet CHIPS ACT child care plan requirements
Care for Business has 35+ years of administering child care programs and can partner with you to develop customized solutions that meet the CHIPS ACT child care plan requirements. Here are some quick tips to get you started:
- Survey your workforce: The Workforce Development Planning Guidelines provide a list of questions to help applicants articulate their plans. The first question in the Child Care plan section is “Have you surveyed your workforce and local providers to assess needs.” Surveying communities will help you assess and determine child care availability and supply and demand constraints. You should also survey your workforce to understand their child care needs and preferences. Care for Business can help with this critical first step, by offering this survey template containing best practices.
- Evaluate the market to find the right child care partners: Once you analyze your workforce needs, it’s time to evaluate potential child care partners. This can be a heavy lift, but this guide for evaluating providers, makes it easier. By customizing the template to include your specific goals and timeline, you’ll be able to more easily evaluate and identify child care partners who best meet your goals and objectives.
- Create your child care plan: Applicants are required to articulate how they will ensure that care is accessible, affordable, high-quality, and reliable for facility and construction workers. Care for Business can partner with you to propose a full spectrum of child care solutions that meet CHIPS ACT child care plan requirements as highlighted in the Care for Business child care solutions section below.
- Submit your application: After you’ve completed the steps above, it’s time to start the application. Application forms and instructions can be found on the CHIPS Incentive Program Application portal. Additional resources such as FAQs, fact sheets, and applicant guides and templates can be accessed on CHIPS.gov.
Care for Business solutions to support your CHIPS ACT application
Care for Business offers a full suite of child care solutions that are affordable, accessible, reliable and high quality. These solutions can be incorporated into your child care plan to help you meet CHIPS ACT child care plan requirements. All of these solutions are accessible from app, web or phone so your workforce can conveniently access them from the field, at your construction sites or manufacturing facilities, in the office, at home or on the go.
Care for Business solutions include:
- Care Membership, the world’s leading network for finding short- and long-term child care. Families can easily find and book background-checked babysitters, centers, and caregivers who meet their budget, location and care needs. Employers pay the platform fee so employees receive unlimited, premium access to the platform at no cost. Care Membership helps all employees find affordable, accessible care–including low and medium-income households, employees who need coverage for shift work and non-traditional hours, and families located in child care deserts. In fact, 90% of ZIP codes have background-checked caregivers within 10 miles.
- Backup Care provides workers with the confidence that they can get to work even when unexpected child care issues arise, while also helping to increase productivity and reduce absenteeism at manufacturing plants. Backup Care is a quality, vetted, subsidized solution that provides access to a vetted network of in-home caregivers and child care centers for low or no cost; plus, the option for employees to get reimbursed if they use caregivers in their own personal network–such as a trusted babysitter, family member or friend.
- Child Care Center Discounts: Care for Business makes care more affordable for all, including low- and medium-income households, by providing access to LifeMart, an online marketplace featuring up to 10% off full-time tuition at brand-name child care centers, saving families on average nearly $1,600 per year. Discounts are available for au-pairs, nannies, and children’s activities–as well as senior care, and everyday essentials.
- Care Specialists are accessible 24/7 to assess the care needs of families, identify and pre-screen potential providers, and refer them to child providers who best meet their needs–centers, family day care homes, before-and-after school care, and in-home caregivers. Care Specialists can also help families find sliding fee scales and sibling discounts. In all instances, Care Specialists save employees time and research so they can find the care they need to get to work.
- Additional customized solutions can be added to support your caregiving needs include subsidy options and on or off-site out of home caregiving partnerships with local providers
With Care for Business, your workforce can rest assured that they have access to high-quality, background-checked child caregivers who meet their needs. Plus, Care for Business can further support your workforce with wrap-around services that help families with senior care, transportation, home care and more.
Why flexible care options are favored over on-site child care centers
While on-site care is one option manufacturing companies can consider, the Workforce Planning Guide documents limitations of on-site centers, both owner-operated and contracted. For example, it can take one and a half years to launch an owner-operated center; operating the facility requires licensure, insurance, and other liability protections; and employers must ensure they have sufficient demand such that their facility would be viable. Further, contracting on-site child care can increase prices for employees and limit employer flexibility, especially if an employer wants to change operating hours or tailor its offerings to worker needs.
Our research confirms obstacles with on-site models. In Care’s 2023 Future of Benefits Report, 68% of employers said they favor flexible childcare benefits compared to only 16% who favor on-site childcare. The flexibility of using caregivers who can come into family’s homes will likely appeal to manufacturing employees who need coverage for shift work and non-traditional schedules.
First funding applications are open–Care for Business is ready to help.
The time to act is now. On February 28, 2023, the CHIPS Program Office released its first funding, which seeks applications for projects for the construction, expansion, or modernization of commercial facilities for the fabrication of leading-edge, current-generation, and mature-node semiconductors. Pre-applications (optional) and full applications for leading-edge facilities will be accepted on a rolling basis beginning March 31, 2023. Care for Business can help your organization propose child care plans that are affordable and turn-key to support your application. Connect with a member of our team today to get started.
