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Senators hear proposal to create childcare provider incentive fund, spotlighting workforce needs
Summary
A public hearing on Senate Bill 567 focused on creating a childcare provider incentive program to support recruitment and retention through stipends, scholarships, loan repayment and housing assistance. Proponents said prior recognition payments were well received and additional, statutory authority and funding are needed.
The Senate Committee on Early Childhood and Behavioral Health opened a public hearing March 6 on Senate Bill 567, a bill that would direct the Department of Early Learning and Care to establish an incentive program and a separate childcare provider incentive fund.
Ms. Hart summarized the bill to committee members, saying SB 567 “directs the Department of Early Learning and Care or DELC to establish and implement a childcare provider incentive program” and to create a distinct Childcare Provider Incentive Fund in the State Treasury.
Senator Aaron Anderson (sponsor) testified in support, describing workforce pressures in the sector and urging the committee to back the bill. “Child care providers are under increasing pressure. Many are operating with extremely low margins and are unable to cover the cost of quality care,” Anderson said, adding that roughly 60 percent of providers operate below licensed capacity because of staffing shortages. Anderson listed possible incentives included in the bill: loan‑repayment subsidies, stipends, scholarships for professional development, and childcare housing assistance.
Dana Hepper, director of policy and advocacy at the Children's Institute, also testified in support and framed SB 567 as part of a three‑leg strategy to address childcare: physical locations, workforce, and operating subsidies. “This legislation builds on recognition payments and would allow stipends to continue while permitting other tools for incentivizing childcare providers to come into this field and stay,” Hepper said.
Witnesses and committee members discussed the 2022 recognition payments, when the legislature allocated $22 million for $500 stipends, and a separate fund used for recent $500 payments in 2024 and 2025. A staff member explained those funds will be expended by the end of the biennium and said potential replenishment could occur in other pending bills; committee members asked staff to check for overlapping proposals and similar prior programs to avoid duplication.
No committee vote was taken; the hearing was a public hearing for testimony and discussion.
