Kentucky Chamber of Commerce Presents Child Care Report to Commerce Lexington’s Public Policy Council & Regional Policy Group

In late June 2025, business and community leaders participated in a joint meeting of the Commerce Lexington’s Public Policy Council (PPC) and the Greater LEX Regional Policy Group (RPG) for discussion of state policy issues, including childcare – a critical workforce development issue.  Dr. Charles Aull, Vice President of Policy at the Kentucky Chamber of Commerce, presented the Kentucky Collaborative on Child Care Report. The report highlights Kentucky’s pressing childcare challenges and proposes policy solutions in anticipation of the 2026 Legislative Session.
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Childcare is a critical workforce topic for Kentucky where workforce participation rates lag significantly behind the national average.  Although workforce participation rates are higher in the Bluegrass Region, childcare continues to be important to increasing the skilled workforce and helping meet employer needs.  Increasing access to quality, affordable childcare helps workers, particularly women, enter the workforce and improves school readiness for children, leading to long-term positive impacts on math and reading scores. Nationally, an estimated 3.8 million individuals need childcare to enter the workforce or expand their working hours.

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To address these challenges, the Kentucky Collaborative on Child Care was established. The initiative brought together a diverse, cross-section of 40 key stakeholders across business, education and childcare, including the Kentucky Chamber of Commerce, the Lift a Life Novak Family Foundation, and the Convergence Center for Policy Resolution. The goal of the collaborative was to identify actionable, consensus-driven solutions that support families and strengthen Kentucky’s economy.

After eight months of research, discussion, and analysis, the group released over three dozen recommendations focused on expanding access to high quality childcare across the Commonwealth. During the policy meeting, Dr. Aull highlighted eight of the report’s key recommendations:

• Resources: Continuing state investments in existing childcare programs.
• Working Families: Supporting innovative programs like the Employee Childcare Assistance Partnership to help recruit and retain childcare workers.
• Community Engagement: Creating these certified childcare community programs to encourage local collaboration.
• Employer Engagement: Leveraging employers provided childcare options.
• Better Data: More accurate state data on the number of childcare facilities and programs to better access needs and services
• Regulatory reform: Examine regulations (Montana model) to increase affordability, accessibility and quality of care.
• Innovation: New form of childcare licensure, modeled after the Indiana approach which focuses on a less bureaucratic approach to become licensed to operate a childcare facility.
• Quality: Reform KY All STARS program, which is a rating system for certified family child care homes.

Addressing childcare solutions will be a policy priority for the business community during the 2026 legislative session. To read the full Kentucky Collaborative Child Care report or to learn more click HERE.

Commerce Lexington’s Public Policy Advocacy is dedicated to enhancing the business climate and economic competitiveness at the local, state, and federal levels of government. Each year, we collaborate with members and regional stakeholders to identify critical issues affecting economic growth, establish policy priorities, communicate key issues, and advocate for effective solutions.

Commerce Lexington’s Public Policy Council comprises a diverse group of member companies reflecting the breadth of Lexington’s business community. The Greater Lex Regional Policy Group consists of regional chambers of commerce, economic development professionals, business leaders, education, and community stakeholders to champion collaborative policy advocacy for the nine-county region in Frankfort and Washington, D.C. The group is dedicated to advocating for policies that enhance the Regional Competitiveness Plan, focusing on improving the business climate and securing investments for critical infrastructure projects.
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For more information about policy advocacy, please contact Anthony Allen, VP of Public Policy or Andi Johnson, Chief Policy Officer and Director of Regional Engagement.