Senate hears testimony supporting SB95 to expand child‑care assistance, cap family co‑payments and set quality grants

Senate Bill 95 — a committee‑sponsored bill that reenacts and refines child‑care assistance provisions first enacted in 2024 — was presented to the Senate Health and Social Services Committee on March 20 with invited testimony from statewide child‑care and child‑welfare advocates.

Sonya Kawasaki, Senate majority legal counsel, described the bill’s procedural purpose: SB95 would reenact provisions from SB189/House Bill 89 to isolate the child‑care assistance program from a pending single‑subject constitutional challenge to SB189 and thereby preserve program elements irrespective of the outcome of that lawsuit. Kawasaki summarized the procedural posture: a complaint was filed in November 2024, an answer filed January 10, 2025, and summary‑judgment briefing is underway.

Evan Anderson, staff to the bill sponsor, walked the committee through key substantive provisions. SB95 would reinstate earlier statutory language and then revert certain terminology (daycare/childcare) to conforming text. Substantive policy changes include raising the maximum household income threshold for subsidy eligibility to 105% of the Alaska median income (adjusted for family size), capping parent contributions at a maximum of 7% of family monthly income, directing the department to procure a cost‑of‑care study to set subsidy rates, prioritizing low‑income children for available slots, and authorizing grants to high‑quality childcare facilities while prohibiting grant recipients from denying enrollment based on disability or socioeconomic status.

Stephanie Berglund, CEO of THRED (Alaska’s Child Care Resource and Referral organization), testified in support. She described the child‑care sector as fragile, with more than 25% of licensed programs closing since 2020 and workforce shortages limiting available seats. Berglund said expanding subsidy eligibility and capping parent co‑payments would enable more families to participate in the workforce and reduce business losses tied to child‑care instability; she also urged a move toward “true cost of care” reimbursement rather than the market‑rate survey that currently ties subsidy rates to provider prices.

Joan Griffiths (listed in committee materials as Jen/Joan Griffiths), vice president of policy and advocacy at Alaska Children’s Trust, gave a legislative history of HB89/SB189 and urged continued support, noting the package had broad bipartisan sponsorship and prior committee and floor approvals last year before becoming law on Oct. 9, 2024. Griffiths said the fiscal note was included in the governor’s December 2024 budget request.

Committee members asked technical questions about terminology (“daycare” vs. “childcare”) and how the bill’s definitions interact with K–12 services and familial care settings; staff noted a legal memo from earlier hearings that addressed those distinctions and suggested the language is intended to avoid encroaching on K–12 education definitions. Chair Dunbar set SB95 aside for public testimony and further committee consideration on Thursday, March 27.