How to Start a Daycare in Alaska (2026)

Last updated: May 4, 2026

Alaska’s child care market is characterized by one of the highest care costs in the nation and persistent supply shortages in most communities. Anchorage infant care averages close to $21,000 per year — among the highest in any U.S. state — which reflects genuine demand exceeding licensed capacity rather than inflated pricing. Licensed child care in Alaska is regulated by the Alaska Department of Health (DOH) Child Care Program Office (CCPO) under AS 47.32 and 7 AAC 57. The licensing structure uses three distinct license types based on the number of children served, and Anchorage operates its own municipal licensing program (enforcing the same state standards) rather than going through state DOH. The November 2024 Ballot Measure 1 paid sick leave requirements and the July 2026 minimum wage increase to $14.00/hr are the primary 2025–2026 compliance changes for Alaska child care employers.

This guide covers the specific Alaska licensing requirements, child-to-caregiver ratios, quality rating system, and subsidy program for starting a licensed child care business in Alaska in 2026.

Alaska Daycare Requirements at a Glance

Requirement	Agency / Detail	Cost	Timeline
Child Care Home License (up to 8 children)	Alaska DOH Child Care Program Office — apply via AKCCIS	Contact CCPO for current fee	60–120 days typical processing
Child Care Group Home License (9–12 children)	Alaska DOH CCPO	Contact CCPO for current fee	60–120 days; requires 2 adult caregivers
Child Care Center License (13+ children)	Alaska DOH CCPO (or Municipality of Anchorage if in Anchorage)	Contact CCPO or Anchorage for current fee	90–180 days; commercial space required
Background checks — all staff 16+	Alaska Dept. of Public Safety Background Check Program	Fingerprinting fees; varies	Must complete before working unsupervised with children
CPR / First Aid certification	AHA, Red Cross, or equivalent	$40–$100 per person	At least one staff member on duty at all times
Staff annual training	Approved child development training providers	Varies	24 hours per year required
Alaska Business License	DCBPL Business Licensing	$50/year or $100/2 years	Before opening
LLC formation (recommended)	DCBPL Corporations	$250 + $100 biennial report	Before or concurrent with licensing
Workers’ comp insurance	Private insurer — competitive market; required at 1 employee	Varies; NCCI code 9059 for daycare	Required before first employee
Learn & Grow QRIS registration	thread Alaska	Free to participate	After obtaining license; voluntary but affects CCAP rates

How to Start a Daycare in Alaska (Step by Step)

Step 1: Choose Your Alaska Child Care License Type

Alaska’s three child care license types are defined by the number of children served and the setting. Choosing the right type before you apply determines your regulatory pathway, capacity, and staffing requirements:

License Type	Setting	Children Served	Key Requirements
Child Care Home	Provider’s private residence	Up to 8 children (including provider’s own children under 13)	One adult provider; meets home inspection standards; applies through state DOH CCPO or Anchorage if in Anchorage
Child Care Group Home	Provider’s private residence	9 to 12 children	Two adult caregivers; one must be administrator age 21 or older; same home setting but higher staffing standard
Child Care Center	Commercial or dedicated facility (not a private residence)	13 or more children	Commercial-grade facility; multiple staff; formal director qualification; full 7 AAC 57 center standards apply

A Child Care Home is the fastest entry point and requires the least capital. A Child Care Center has higher capacity and earning potential but requires commercial space, larger staff, and more complex compliance. For Anchorage operators, the municipality of Anchorage administers licensing locally — contact Anchorage Health at the Municipality’s child care licensing office before starting.

Step 2: Review 7 AAC 57 and Contact the Child Care Program Office

The Alaska child care licensing regulations are in 7 AAC 57, administered by the Alaska Department of Health Child Care Program Office (CCPO). Read 7 AAC 57 in full before applying — it covers physical space requirements, health and safety standards, child-to-caregiver ratios, background check requirements, staff qualifications, and record-keeping. The CCPO offers pre-licensing consultation and is the authoritative source for questions about your specific situation:

• Phone: (907) 269-4500 or toll-free (888) 268-4632
• Email: doh.ccpo.info@alaska.gov
• Website: health.alaska.gov/en/education/child-care/

Contact the CCPO before committing to a facility location. Physical space requirements — room sizes, outdoor play area square footage, bathroom ratios, and fire egress — must be verified before you sign a lease or begin renovations. Discovering a space doesn’t meet code after signing a lease is an expensive mistake that pre-licensing consultation can prevent.

Step 3: Complete Pre-Licensing Training

Alaska requires applicants to complete the Introduction to the Provisional Child Care Licensing Process online training through the Alaska DOH learning portal before submitting a license application. This training covers the licensing process, key regulatory requirements, and the AKCCIS application system. thread Alaska (threadalaska.org) also provides training and coaching for early childhood educators throughout Alaska and is the primary resource for staff professional development.

Staff annual training requirements under 7 AAC 57: 24 hours of child development training per year for each staff member working with children. Track training records from day one — CCPO inspectors review training documentation during monitoring visits.

Step 4: Pass Background Checks for All Staff and Household Members

Alaska requires federal and state background checks for all providers and staff age 16 or older who are present in a licensed child care facility. For home-based licenses, this includes all household members age 16 or older who live in the home — even if they are not providing care. Background check requirements include:

• FBI fingerprint check through the Alaska Department of Public Safety Background Check Program
• Alaska criminal history check
• Sex offender registry check
• Background checks must be completed and cleared before a person may work unsupervised with children — this is a strict disqualification standard, not a discretionary review

Background checks take time. Start this process as early as possible — processing delays can push back your entire opening timeline. The CCPO will not issue a license until all required background checks are complete and meet the clearance standard.

Step 5: Apply Through AKCCIS

Submit your license application through the Alaska Child Care Information System (AKCCIS) at akccis.com. AKCCIS is the centralized portal for Alaska child care licensing, provider records, and subsidy management. Your application must include your proposed facility details, staff information, capacity plan, and completed pre-licensing training documentation.

After submitting your application, the CCPO will schedule a pre-licensing inspection of your facility. The inspector verifies compliance with 7 AAC 57 physical space requirements, health and safety standards, and records. Be prepared to demonstrate that your space meets the required square footage per child, has appropriate bathroom facilities, and meets fire safety requirements. A provisional license may be issued initially while you complete any required corrections.

Step 6: Meet Child-to-Caregiver Ratios and Maintain Them Daily

Alaska’s child-to-caregiver ratios under 7 AAC 57.505 are among the most specific regulatory requirements you will operate under. Non-compliance at inspection results in citations and can jeopardize your license. The ratios:

Age Group	Ratio (Caregiver:Children)	Maximum Group Size
Infants (6 weeks – 1 year)	1:5	10 children
Young toddlers (1 – 2.5 years)	1:6	12 children
Older toddlers (2.5 – 3.5 years)	1:10	20 children
Preschool (3 – 5 years)	1:14	28 children
School-age (5 years and older)	1:18	36 children

For mixed-age groups, the ratio for the youngest child in the group applies to the entire group. A room with one 8-month-old infant and four 3-year-olds must be staffed at the 1:5 infant ratio — not the 1:14 preschool ratio. Build your daily scheduling system around maintaining ratios at all times, including during staff lunch breaks, sick calls, and transition periods.

At least one staff member on duty at all times must hold a current CPR and first aid certification.

Step 7: Set Up Business Compliance — LLC, Business License, Workers’ Comp

Child care centers and group homes operating as businesses (rather than informal home providers) should form an LLC through DCBPL for $250 — the liability protection is especially important when operating a business caring for children. All child care businesses need the statewide Alaska Business License at $50/year from DCBPL.

Workers’ compensation applies at 1 employee. NCCI classification code 9059 applies to child day care services. Hire employees under Ballot Measure 1’s 2025–2026 wage schedule ($13.00/hr through June 30, 2026; $14.00/hr effective July 1, 2026) and implement the paid sick leave policy (40 hours/year for operators with fewer than 15 employees).

Register for Unemployment Insurance with DOLWD before your first hire. The 2026 UI taxable wage base is $54,200 at a 1.99% new employer rate.

Step 8: Register for Learn & Grow and the Child Care Assistance Program

Learn & Grow QRIS

Alaska’s Learn & Grow Quality Recognition and Improvement System is the state’s voluntary but incentivized quality rating system, managed by thread Alaska. It has five quality levels beyond basic licensing. Programs participating in Learn & Grow gain access to:

• Coaching and technical assistance from thread Alaska advisors
• Professional development resources through the thread Tools online platform
• Higher CCAP reimbursement rates at higher quality levels
• Quality improvement grants from the state

Register at threadalaska.org/learn-and-grow/ after your license is issued. Participation is free and opens access to support that many new providers find essential in the early months of operation.

Child Care Assistance Program (CCAP)

The Child Care Assistance Program (CCAP), administered by Alaska DOH, provides subsidies to income-eligible families to cover all or part of child care costs. For licensed providers, CCAP acceptance means a reliable revenue stream: the state pays the provider directly for eligible families. Families with incomes up to approximately 85% of the Alaska State Median Income may qualify. Being a CCAP-approved provider is a significant competitive advantage — in markets with low-income working families, CCAP-eligible slots fill faster than private-pay slots. Register as a CCAP provider through AKCCIS after your license is issued.

Alaska’s Child Care Market: Where the Demand Is

Anchorage is the center of Alaska’s child care market and the most supply-constrained. The combination of the JBER military community (which has its own on-post childcare but creates overflow demand), the large state and federal government workforce, the oil and gas industry, and healthcare creates strong demand for infant and toddler slots — the highest-priced, most-profitable age group. Anchorage infant care costs approach $21,000 per year, which drives provider revenue but also represents a barrier to access that CCAP partially addresses.

The Mat-Su Borough (Wasilla, Palmer) is Alaska’s fastest-growing population area with persistent child care shortages — the growth in families has outpaced licensed provider capacity. New licensed home providers in Mat-Su frequently fill immediately. Fairbanks has demand driven by military families (Fort Wainwright, Eielson AFB) and UAF staff. Juneau‘s child care market is limited by the city’s geographic isolation — supply is constrained by the difficulty of attracting staff to a city accessible only by sea or air.

Alaska Native villages across bush Alaska face the most acute child care shortages — federal programs (BIA, Head Start) and CCAP are often the only care options. Licensed family home providers in rural Alaska villages can access CCAP reimbursement and sometimes receive additional support through Alaska Native corporations and tribal health organizations.

Cost to Start a Daycare in Alaska

Item	Estimated Cost	Notes
LLC formation	$250	Recommended for liability protection
Alaska Business License (2 yrs)	$100	Required for all businesses
State licensing fee	Contact CCPO	Varies by license type; contact 907-269-4500
Background checks (per person)	$40–$100 per person	FBI fingerprinting + state check fees
CPR/First Aid training (per staff)	$40–$100 per person	AHA or Red Cross; renewal every 2 years
Facility setup (Child Care Home)	$1,000–$5,000	Safety equipment, outdoor play area, supplies
Facility setup (Child Care Center)	$20,000–$100,000+	Commercial lease, renovation, equipment
Workers’ comp insurance	$500–$2,000/year	NCCI 9059; required at 1 employee
General liability insurance	$600–$1,500/year	Recommended $1M–$2M for child care
Home-based license total (first year)	$2,000–$7,000	Excluding existing home modifications
Child care center total (first year)	$30,000–$150,000+	Highly variable by facility size and location

Related Alaska Business Guides

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Frequently Asked Questions

What agency licenses daycares in Alaska?

The Alaska Department of Health (DOH) Child Care Program Office (CCPO) licenses child care providers statewide under AS 47.32 and 7 AAC 57. Exception: daycares within the Municipality of Anchorage are licensed by Anchorage Health, not by state DOH, though they enforce the same 7 AAC 57 standards. Contact CCPO at (907) 269-4500 or doh.ccpo.info@alaska.gov for statewide licensing; contact Anchorage Health if your facility is in Anchorage.

What are Alaska’s daycare staff-to-child ratios?

Under 7 AAC 57.505: 1 caregiver to 5 children for infants ages 6 weeks to 1 year (max group 10); 1:6 for toddlers ages 1 to 2.5 years (max group 12); 1:10 for children 2.5 to 3.5 years (max group 20); 1:14 for preschoolers 3 to 5 years (max group 28); 1:18 for school-age 5 and older (max group 36). Mixed-age groups must use the ratio of the youngest child present.

How many children can I watch in my home in Alaska?

A licensed Child Care Home may serve up to 8 children including the provider’s own children under age 13. A Child Care Group Home may serve 9 to 12 children and requires two adult caregivers, one of whom must be an administrator age 21 or older. Both types require DOH licensing and background checks for all household members age 16 and older.

Is Alaska a good state to open a daycare?

Yes. Alaska has some of the highest child care costs in the country and persistent licensed provider shortages, particularly for infant and toddler slots. Anchorage infant care averages close to $21,000 annually. The Child Care Assistance Program (CCAP) provides stable subsidy revenue for CCAP-eligible providers. Alaska’s no-state-income-tax structure also benefits the business owner’s personal earnings.

Does Alaska have a quality rating system for daycares?

Yes. Learn & Grow is Alaska’s Quality Recognition and Improvement System (QRIS), managed by thread Alaska at threadalaska.org. It has five quality levels beyond basic licensing. Programs participating in Learn & Grow at higher levels qualify for higher CCAP reimbursement rates and quality improvement grants from the state. Registration is free after your license is issued.

What background checks are required for Alaska daycare workers?

All providers and staff age 16 or older present in a licensed facility must complete FBI fingerprint background checks through the Alaska Department of Public Safety Background Check Program, along with a state criminal history check and sex offender registry check. For home-based licenses, this includes all household members age 16 or older, even non-caregiving household members. No person may work unsupervised with children until their background check is cleared.

Does Anchorage have its own daycare licensing?

Yes. Child care facilities within the Municipality of Anchorage are licensed by Anchorage Health’s child care licensing division, not by state DOH directly. The Anchorage program enforces the same 7 AAC 57 state standards. If your facility is located within Anchorage municipal boundaries, contact Anchorage’s licensing office rather than state DOH to begin your application.