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Senate expands child‑care assistance eligibility for child‑care workers to address staffing shortage
Summary
House Bill 11‑32 passed the Senate, allowing families in which a parent works as a child‑care provider to qualify for child‑care assistance at a higher income threshold (300% of the federal poverty level) if the worker is employed at least 30 hours a week. Sponsors said the change will help reopen classrooms by keeping or attracting staff.
The Senate approved House Bill 11‑32 on March 3, 2025, a measure that amends South Dakota’s child‑care assistance eligibility to allow families in which a parent works in child care to qualify for assistance at up to 300% of the federal poverty level, provided the worker is employed at least 30 hours per week.
Senator Reid, who led an ad hoc task force on childcare, said staffing shortages are the sector’s biggest barrier and that opening eligibility to child‑care workers would make it financially feasible for some parents to remain in or return to the workforce. Reid told the chamber that each additional child‑care worker can create 10 to 16 more child‑care slots by enabling centers to open classrooms.
The sponsor noted the measure does not request additional general funds and instead repurposes or reshuffles existing federal child‑care block‑grant dollars within the fixed budget; critics, including Senator Howard, warned the change could reduce assistance for other low‑income families because federal block‑grant funding is capped and fully obligated.
Floor debate included questions about how many slots are needed statewide (the sponsor said an approximate 35% deficit in slots existed for working families) and whether COVID‑era ARPA funds were used for capacity; senators also raised concerns about potential precedent for industry‑specific carve‑outs.
Final passage was recorded as 20 yeas and 14 nays; the President declared the bill passed. Supporters characterized the approach as a braided‑funding strategy involving businesses and philanthropic partners to sustain childcare; opponents flagged equity concerns for other low‑income families under the capped federal grant.
