Think tank’s policy brief provides data-driven insights on Tennessee’s child care shortage and recommendations for expanding home-based child care options
NASHVILLE – A new policy brief from nonpartisan think tank ThinkTennessee finds that expanding home-based child care could play a major role in addressing Tennessee’s ongoing child care shortage while increasing access to affordable, high-quality care for families across the state. The brief examines the growing importance of home-based child care — care provided in a residence for a smaller number of children than a traditional center — and outlines how targeted policy changes could help more providers open, grow, and thrive.
“Home-based child care is one of the most practical and scalable ways to increase access to care in Tennessee,” said Erin Hafkenschiel, president of ThinkTennessee. “These providers are deeply rooted in their communities and are often able to meet the needs of families in ways larger systems cannot – especially in rural and underserved areas.”
While much of the conversation around Tennessee’s child care shortage focuses on traditional child care facilities, the brief finds that home-based providers already serve as a critical part of the state’s child care infrastructure. With additional support and fewer barriers to entry, these providers could significantly expand care options statewide.
The report notes that home-based child care is substantially more affordable for families, costing an average of 33% less than center-based care in Tennessee. It is also often more accessible in rural communities, where licensed child care options can be scarce. Of Tennessee’s 35 counties classified as child care deserts, 30 are rural — underscoring the urgent need for flexible, community-based solutions.
Despite this potential, many home-based providers face challenges that limit their ability to start or expand a business, including burdensome regulations, limited access to state resources, and a lack of professional development opportunities tailored to their needs.
To help strengthen and grow Tennessee’s home-based child care sector, the brief recommends that policymakers:
- Reduce regulatory barriers to make it easier to start a home-based child care business
- Use a statewide registry to ensure state and federal support reaches unlicensed home-based providers
- Connect home-based child care providers to professional development resources tailored to their unique needs
The policy brief underscores that child care is not only a family issue, but also an economic one. Limited access to affordable care can prevent parents from participating in the workforce, creating ripple effects for employers, local economies, and communities across Tennessee. By investing in home-based child care and supporting the providers already serving families across the state, Tennessee has an opportunity to expand affordable care options, strengthen local economies, and better meet the needs of working families — all while maintaining strong standards for quality, health, and safety.
The full policy brief, Expanding Child Care Access in Tennessee: The Role of Home-Based Providers, can be found on ThinkTennessee’s website at thinktennessee.org/research/economy.
