Active & Reforming (HB 6)
Kentucky Child Care Cost-Sharing & 2026 Reforms
Kentucky's Employee Child Care Assistance Partnership (ECCAP) matches employer contributions on a sliding scale. HB 6 (passed House Feb 2026) aims to further simplify employer participation.
ECAP
Program Name
11
Regional Hubs
~67%
Employer Savings
120
Counties Covered
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Kentucky Pays
~33%
via ECAP
Parent Pays
~33%
of total tuition
Kentucky Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Kentucky Savings Stack
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| Kentucky ECAP Match | ~$4,000/child/yr | ~$4,000/child/yr |
| Federal 45F Credit (2026) | 50% of employer share | 40% of employer share |
| Net Employer Cost | ~$2,000/child/yr | ~$2,400/child/yr |
💰 Real-World Employer Savings
| Cost Component | Without Program | With Kentucky Stack |
|---|---|---|
| Annual infant care cost (Louisville) | $11,700 | $11,700 |
| ECAP State Match (33%) | $0 | -$3,900 |
| Parent Share (33%) | $0 | -$3,900 |
| Employer Share before 45F | $11,700 | $3,900 |
| Federal 45F Credit (50% of employer share) | $0 | -$1,950 |
| Net Employer Cost | $11,700 | $1,950/yr |
Kentucky employers save ~83% using ECAP + Federal 45F Credit
📋 Available Programs & Incentives
Employee Child Care Assistance Partnership (ECAP)
Active Tri-Share
Employer/State/Employee cost split — 11 regional hubs
Eligibility: Employers and families at or below 200% FPL
Kentucky Child Care Assistance Program (CCAP)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
Federal Section 45F Credit
Federal Tax Credit
Up to 50% of employer costs (max $600K/yr)
Eligibility: All U.S. employers with qualifying child care expenses
Kentucky All STARS Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Kentucky child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Kentucky employer, no state program required
📍 Geographic Coverage
Tri-Share and employer child care programs are available to employers and families across all cities and counties in this state. Key areas include:
❓ Frequently Asked Questions
The Employee Child Care Assistance Partnership (ECAP) is Kentucky's Tri-Share program. Employers, the state, and employees each contribute approximately one-third of child care costs. The program operates through 11 regional hubs statewide.
ECAP serves employees at or below 200% of the Federal Poverty Level (FPL). Contact your nearest ECAP hub for current income thresholds and eligibility requirements.
Yes — Kentucky employers participating in ECAP can also claim the Federal Section 45F Credit on their employer contributions, further reducing net costs.
Louisville, Lexington, Bowling Green, and Covington have the highest ECAP participation rates. All 120 Kentucky counties are served through 11 regional hubs.
Contact the Kentucky Cabinet for Health and Family Services at chfs.ky.gov or find your nearest ECAP regional hub for enrollment information.
Kentucky All STARS is the state's quality rating and improvement system for child care providers. Higher-rated providers receive additional funding and are preferred ECAP partners.
Kentucky ECAP employers typically save 67–83% on child care costs by combining the state match with the Federal 45F Credit. Contact your regional hub for a personalized savings estimate.