With child care in short supply across Tennessee—and the private market failing to meet rising demand—state lawmakers are finding new ways to foster industry growth, including tackling regulatory reform.
A new law, public chapter 276, will cut some of the red tape that makes it difficult and expensive to open and operate child care programs, while still protecting the health, safety, and development of young children.
Following the successful passage of HB1175/SB1379 sponsored by Representative Ryan Williams and Senator Bo Watson, the law went into effect July 1, 2025, and is a major step toward right-sizing child care regulations so more Tennessee families can access affordable, high-quality care.
Why Regulations Matter—And When They Go Too Far
Regulations are essential to protect the health, safety, and positive development of young children. But unnecessary and confusing regulatory requirements, codes, and rules — and slow bureaucratic processes — can make it difficult and expensive to open and operate a child care business.
Regulations are essential to ensuring safe, nurturing environments for young children. But when rules become unnecessarily complex and processes bogged down, they can stall program openings, increase costs, and discourage new providers from entering the field.
Laura Brock, a teacher and child care provider in Cumberland County, experienced these challenges firsthand:
For some time we saw a consistent and alarming problem with the lack of care and support for children needing a safe space to stay when school is dismissed. In attempting to set up our after-school program, we quickly learned why these programs are scarce. Without some additional help, expanding our programs may not be possible.
Dr. Kimberly Hale, a child care provider in Macon County, shared her frustrations:
Look at the process and timeline we’re having to go through. We can’t afford to float the costs of the facility even though out children deserve it, communities deserve it, and our children with special needs deserve it.
What the New Law Changes
The new law includes three major reforms to streamline and modernize Tennessee’s child care system.
1. Helping Providers Secure Affordable Space
The law extends an existing “right of first refusal”—previously available only to charter schools—to child care agencies. This means providers can now access vacant or underused school district properties at or below market value.
Affordable access to space can make the difference between a new program opening or closing before it begins. Lower facility costs mean providers can invest more in early educator wages and serve more children.
2. Cutting Redundant Fire Inspection for School-Based Programs
Before- and after-school programs located in public school buildings were often delayed by a second, redundant fire marshal inspection, even though the schools had already passed inspection.
Now, if a local fire marshal has already approved the school building, that inspection will suffice for the child care program to receive a provisional license. This change significantly speeds up opening timelines for programs ready to serve families.
3. Simplifying Licensing for Home-Based Child Care
Home-based child care providers have often been held to commercial building codes—even though they operate inside occupied residential homes.
This law clarifies that family child care homes should be treated as residential properties for zoning, sanitation, and building code purposes, and only required to meet the state fire marshal’s standards for fire and building codes—not more stringent local commercial requirements.
Sam Pettyjohn, a Johnson City resident, described how excessive local requirements forced him and his wife to shut down their home-based program:
We were being held to the same standard for fire safety as a commercial childcare center. Among other things, they wanted us to install an ADA compliant bathroom, self-closing metal fire doors, an integrated fire alarm panel, etc. This was not feasible for us to do in our home. The state approved our application, but the city would not give us an occupancy permit; so ultimately 5 kids lost their childcare spots and 4 employees lost their jobs, and I think we spent over 15,000 dollars or our own money trying to keep the center in the black while we tried to get a license.
The TACIR Report: Evidence Behind the Law
The law is grounded in findings from a Tennessee Advisory Commission on Intergovernmental Relations (TACIR) review. In 2024, TACIR—directed by legislation from Rep. Williams and Sen. Watson—conducted:
- 45 interviews with stakeholders
- 6 virtual focus groups with providers
- A survey of 364 child care directors and owners
The final report, released in January 2025, highlighted outdated and inconsistent rules that create costly delays for child care entrepreneurs.
What’s Next for Tennessee Child Care Reform?
Public chapter 276 is an important step in building a stronger child care marketplace by right-sizing regulations, but more work remains.
Tennessee must continue efforts to:
- Reduce red tape
- Remove unnecessary duplication
- Streamline bureaucratic inefficiencies
More reforms are expected in the 2026 legislative session, as policymakers, providers, and advocates work to create a child care system that supports families, employers, and communities across the state.
