Senate bill would create $150 million endowment to finance long‑term early childhood investments

Senator Laura Smith introduced Senate Bill 565 to create a Montana Endowment for Early Childhood funded with an initial $150 million deposit; the bill would use the endowment interest to support childcare workforce development, technical assistance, recruitment and retention grants, affordability initiatives and expansion of licensed after‑school care.

Proponents included 0 to 5 Montana, the Missoula Economic Partnership, the Montana Chamber of Commerce, and a coalition of childcare providers and advocates. Witnesses argued that childcare is a foundational part of economic infrastructure: businesses report difficulty hiring and retaining workers because of lack of childcare, parents miss work for childcare issues, and rural communities struggle to attract educators and health care workers without reliable local childcare.

Advocates asked for a stakeholder‑driven board to guide priorities and recommended aligning investments with DPHHS' Early Childhood System strategic plan. Supporters said an endowment would provide long‑term, stable funding and allow strategic public‑private partnerships, and they cited similar structures in roughly 16 other states.

Committee members asked about likely annual payout amounts from the endowment; the sponsor said the bill funds the endowment principal and that interest would generate program dollars (estimated at a few million dollars annually, pending a fiscal note). The Department of Public Health and Human Services provided informational testimony and the sponsor pledged to work with fiscal staff as the bill advances. The committee closed the hearing without taking a vote.