The HCE Childcare Capacity grants are designed to provide targeted financial support to childcare programs by covering a broad range of essential expenses. In detail, the grants can be applied to the following areas:

1. Classroom Furnishings and Educational Materials
Funding may be used to acquire classroom furnishings and materials that are necessary to meet SPARK requirements. This ensures that educational environments are well-equipped and conducive to learning, enabling providers to create safe and engaging spaces for children.

2. Repairs and Updates to Childcare Spaces
For programs that operate in owned spaces—particularly in in-home-based settings—grants can cover the cost of necessary repairs or updates. This category supports investments in the physical infrastructure, ensuring that the childcare environment meets safety standards and remains up-to-date with current operational needs.

3. Outdoor Infrastructure and Equipment
The grants also extend to outdoor play areas. Eligible expenses include the purchase and installation of outdoor play structures, new fencing, fall surfaces, and other related equipment. These improvements are vital for enhancing the safety, functionality, and appeal of outdoor learning and play spaces.

4. Technology and Software Investments
Recognizing the importance of digital tools in modern childcare settings, the funds may be allocated toward technology and software. This includes purchasing hardware, software licenses, and other digital resources that help streamline administrative tasks and support innovative educational programming.

5. Insurance Costs and Licensing Fees
Operational overhead is addressed through funding for insurance costs and licensing fees. By alleviating these financial burdens, the grants help providers maintain compliance with regulatory standards while ensuring that they have the necessary protection and legal standing to operate effectively.