(1)    In this section, “child care provider” has the meaning given in s. 49.155 (1) (ag).

   (2)   From the allocation under s. 49.175 (1) (p), the department may award grants to child care providers to support access to high-quality child care for families that reside in a geographic area with high-poverty levels, as identified by the department, in the city of Milwaukee. A grant under this section may be used for start-up costs, ongoing operational costs, including subsidy payments for eligible families, and quality improvement activities. A child care provider that is awarded a grant under this subsection shall contribute matching funds equal to 25 percent of the amount awarded. The matching contribution may be in the form of money or in-kind goods or services.

   (3)   From the allocation under s. 49.175 (1) (qm), the department may award grants to any of the following to improve overall child care quality in the geographic area identified under sub. (2):

      (a)    Child care providers and employees of child care providers.

      (b)    Educational institutions for the purpose of educating employees of child care providers.