New Hampshire agency seeks to improve childcare funding and support for families

Concerns over Medicaid eligibility and childcare funding dominated discussions at the New Hampshire Senate Finance meeting on April 29, 2025. Lawmakers are grappling with the challenge of ensuring that financial penalties and capitation payments for Medicaid do not extend to individuals who are no longer eligible. The focus is on preventing delays in verification processes that could lead to unnecessary expenditures.

The meeting highlighted the pressing need for increased capacity within the Bureau of Child Development, which oversees the Child Care and Development Fund (CCDF). This federal fund, amounting to $28 million annually, is crucial for providing childcare subsidies to families, enabling them to work while ensuring quality childcare services. However, a proposed budget request of $15 million to enhance recruitment and retention efforts for childcare providers was not included in the governor's or house budgets. Instead, the house suggested using Temporary Assistance for Needy Families (TANF) funding for this purpose, which is not permissible under current regulations.

Senators raised questions about the allowable uses of TANF funds, emphasizing the need for clarity on how these funds can support childcare initiatives. The discussion also touched on the significant increase in childcare utilization, which has surged by 56% since January 2024, prompting the department to seek solutions to avoid a waitlist for families needing childcare.

Additionally, the meeting addressed staffing changes within various bureaus, including the unfunding of positions in the Bureau of Child Support Services. This move raises concerns, as child support officers are known to generate significant returns on investment for families, collecting six times their cost in support.

As the meeting concluded, senators appeared engaged, reflecting the importance of these discussions for the future of childcare and financial assistance programs in New Hampshire. The outcomes of these deliberations will likely shape the state's approach to supporting families and managing public funds in the coming fiscal year.