House sustains governor's veto of bill expanding childcare assistance to childcare workers

Governor Larry Roden returned House Bill 11-32 with objections, and the South Dakota House voted on March 13 on whether to override his veto. The motion to pass the bill notwithstanding the governor's veto failed, with 27 members voting yes and 43 voting no; the two-thirds threshold required to override the veto was not met and the veto was sustained.

The veto letter from Governor Roden argued the bill "shifts South Dakota's childcare assistance program away from its core mission," saying the measure would give "childcare workers preferential treatment" and transform a safety-net program into what he called a "long term workforce subsidy." The governor also wrote that the bill "includes no appropriation to cover the cost of expansion." (Governor Larry Roden, veto message.)

Supporters on the House floor said the measure was targeted to address a statewide childcare workforce shortage they say is preventing centers from opening and keeping parents from returning to work. Representative Jennifer Healy, a lead floor sponsor, told colleagues, "We have empty classrooms because we don't have enough staff to open them. Those staff already can't afford childcare, and that's why we're here trying to help them." Healy and other proponents described the bill as a practical, limited step intended to help working families and the childcare workforce.

Opponents focused on funding and program design. Representative Jack Kolbeck and others said the change would create inequities between workers in different industries and risk reducing benefits for the low-income families the program is designed to serve. On the floor, Kolbeck and other members cited figures presented by the governor or executive-branch staff that estimate an added state-general-fund cost of roughly $3.8 million if 5% of the current childcare workforce applied, and as much as $38 million if half the workforce applied; they argued no appropriation in the bill meant the expansion would force benefit reductions or waiting lists for currently eligible families.

Several members urged continued policy work outside the childcare assistance program, including regulatory reforms and private-sector workforce supports, while others said the bill aligned with responses used in other states. Representative Kolbeck summarized the bill's change as expanding eligibility "for applicants who work at least part time in a licensed or registered childcare facility" to incomes up to 300% of the federal poverty level from the current 209% threshold for other applicants.

Because the House did not reach the two-thirds vote required to override a governor's veto, House Bill 11-32 remains vetoed. The veto message and the House's reconsideration appear in the House journal and were part of the March 13 legislative session.