Jessica Thomason, executive director of the Human Services Division at HHS, told the appropriations committee that childcare costs have risen sharply in recent years and that affordability remains a major factor in workforce participation.

Thomason said North Dakota’s population growth and labor dynamics influence childcare demand and affordability. "If you have young kids, childcare is not a slice of that pie — and it's a big slice," she said, illustrating how childcare can consume a sizable portion of household budgets.

Why it matters: Childcare affordability affects whether parents take or keep jobs. Appropriators must weigh investments in the childcare assistance program, provider supports and one‑time grants as part of workforce and economic strategies.

Key data and context presented:
- Average center‑based infant care: $1,065 per month (statewide average from the 2024 market and cost study). Monthly infant cost ranges cited: $606–$1,800 depending on provider and county.
- Market trend: childcare costs increased roughly 28–40% over the 2020–2024 period based on agency provider surveys.
- Childcare assistance program: The program sets a family co‑pay “never more than 7% of gross income” for eligible families; the committee asked for scenarios showing state fiscal cost if a 7% or other thresholds were adopted more broadly.
- Jobs and wages: Thomason said about 46% of job openings had an average hiring wage under $20 per hour (data pulled December 2024) and that roughly 70% of jobs in the state have average wages of $30 per hour or less.

Pilots and policy items:
Thomason summarized four provider‑led pilots (funded by prior one‑time appropriations) testing care in nontraditional hours — evenings, overnights and weekends — for workers with shift schedules. She cautioned uptake has been slow in the first months of pilots because families often continue fragile but existing child‑care arrangements. The pilots are intended to be learning projects for scaling models that work in specific communities.

Thomason also outlined program pieces funded or continued in the Armstrong administration’s executive recommendation: expansion of the “best in class” pre‑K program, continuation of grants and shared services, and carryover requests for working‑parent childcare relief and workforce training incentives. She said the economic assistance team’s base request includes cost‑to‑continue for existing child care assistance operations; the executive recommendation listed additions as one‑time requests.

Follow‑up: Committee members asked for county‑level occupancy and utilization details for pilots and for fiscal scenarios estimating state cost under 7% and other household co‑pay thresholds. Thomason said the agency would provide those scenarios and related cost‑to‑continue figures in upcoming section hearings.

Ending: The committee heard that childcare remains a high‑cost, high‑priority area tied to workforce strategy; several pilot and grant programs continue under one‑time funding and will require legislative consideration for continuation.