Case Study

Strengthening Mississippi’s Childcare System Through More Than $110 Million in Federal Funding

SUMMARY/OVERVIEW

Supporting Childcare Programs to Assist Families, Workers, and Providers

Communities across the country faced significant childcare challenges during and after the COVID-19 pandemic. Childcare workers continued earning low wages, employers and local economies dealt with labor shortages, and families struggled to find affordable care. In Mississippi, these pressures created an urgent need to stabilize the childcare workforce and increase access to care.

To meet these challenges, the Mississippi Department of Human Services (MDHS) launched the Early Child Care Development Initiative (ECCDI), a statewide effort funded by more than $110 million in federal resources. Working with our team, MDHS designed and administered five targeted programs focused on workforce development, facility enhancements, professional development, and greater childcare capacity throughout the state.

* Work in this case study was completed by HORNE before its integration with BDO in November 2025. The team now provides these services as part of BDO Government Services, LLC.

Key Takeaways

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More than 7,500 childcare teachers and directors received financial incentives

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930 existing childcare facilities received support, representing capacity for more than 63,000 children

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70 new providers were launched to expand access to childcare services

Children and teacher building in a classroom
The Challenge

Putting $110 Million in Federal Funding to Work

With more than $110 million available through the Child Care Development Block Grant (CCDBG) and American Rescue Plan Act (ARPA), MDHS had an opportunity to address substantial workforce and capacity challenges across the state. To deploy the funds, MDHS needed to design and administer multiple programs that could reach providers, educators, and families while maintaining compliance with federal requirements and responsible stewardship of public funds.

Adding to the complexity, the agency had to move quickly from program design to statewide implementation. MDHS sought an approach that could support participant outreach, application processing, verification, communications, reporting, and ongoing oversight to deliver funding to eligible Mississippi recipients.

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The Approach

Launching Five Programs To Address Key Childcare Need

MDHS worked with our team to design and implement ECCDI, a comprehensive initiative addressing workforce support, provider sustainability, facility improvements, and childcare expansion. Together, we created the framework to build and manage five interconnected programs statewide.

Three programs launched first:

  1. Scholarship Payment Program for professional development and Child Development Associate (CDA) credential attainment for childcare educators.

  2. Direct Incentive Program with financial incentives to childcare teachers and directors.

  3. School Age Reimbursement Program for providers that delivered care during pandemic-related school closures.

Once early results showed the model was working, we helped add two more programs halfway through the initiative, plus an expansion of the Direct Incentive Program.

  1. Room Refresh Program for providers to update classrooms with furniture, supplies, and learning materials.

  2. Start Up Cost Reimbursement Program supporting the launch of new childcare providers across the state.

Although each program addressed a distinct need, all operated through the common framework, with embedded controls to mitigate fraud, waste and abuse. Our team assisted MDHS with ECCDI administration and conducted an internal audit function to test payment distributions, verify applicant eligibility, and investigate fraud complaints throughout the initiative.

Teacher encouraging children while they color
The Results

Helping Families, Childcare Providers, Employers, and Communities Thrive

In less than a year, MDHS directed federal funding toward workforce and professional development, facility enhancements, and expanded childcare capacity.

  • More than 7,500 teachers and directors received financial incentives through ECCDI, contributing to lower turnover among providers, with 91% of participating directors saying the initiative helped them retain staff. 
  • Professional development opportunities further strengthened the workforce, with 553 educators completing Child Development Associate (CDA) training and 153 earning credentials. 
  • The initiative reached 930 existing childcare facilities, representing licensed capacity for more than 63,000 children. 
  • Through the Room Refresh Program, 812 providers received classroom furniture, supplies, and learning materials to create more engaging learning environments for children.
  • The Start-Up Cost Reimbursement Program launched 70 new providers, increasing childcare options in underserved communities.

By addressing workforce, facility, and capacity needs in a single coordinated statewide initiative, we helped MDHS rapidly convert federal funding into lasting childcare improvements for Mississippi communities. 

Public-private collaboration can enable state and federal agencies to move quickly from funding award to measurable results. Our experience and resources equip government leaders to design, implement, and scale effective public-sector initiatives.

“Strong childcare systems contribute to the health and vitality of communities. Through ECCDI, MDHS was able to invest in providers, educators, and families across Mississippi, creating opportunities that will continue to support communities long after the program's completion."

Kade Moody
Practice Leader, BDO Government Services