Committee hears bill to preserve $15M for childcare workforce if TANF approval denied
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Summary
House Finance heard HB 15-66, a contingent appropriation that would provide $7.5 million per year (total $15M biennium) to DHHS for recruitment and retention grants for childcare providers if federal TANF approval does not allow direct workforce payments. DHHS described limited federal pathways and prior grant outcomes; stakeholders urged action. Division 3 will take up the bill in a work session Feb. 9.
Representative Mary Jane Wallner introduced HB 15-66 in the House Finance Committee, saying the bill would appropriate $7.5 million per fiscal year (a $15 million biennial total) to the Department of Health and Human Services to fund recruitment and retention grants for childcare employers if federal TANF approval for the use of those funds is denied.
Wallner told the committee that the 2025 budget included contingency language requiring DHHS to seek formal approval from the federal Administration for Children and Families to use TANF funds for workforce bonuses and, if necessary, to pursue a waiver. She said the department submitted the request and provided committee members with the federal response, but that many stakeholders still find the guidance unclear.
Karen Hebert, director of DHHS’s Division of Economic Stability, explained the federal options: states may either pay directly for eligible TANF children’s child care or transfer up to 30% of a state’s TANF grant into the Child Care and Development Fund (CCDF). She said ACF indicated it is unclear how direct recruitment and retention bonuses to childcare workers would meet one of TANF’s four statutory purposes and emphasized that TANF dollars must benefit TANF‑eligible families and children.
Hebert summarized results from prior rounds of the workforce grants: among reporting grantees, 80% used funding for retention and wage increases; 48% used funds for professional development and staff tuition support; other uses included paid time off, administrative costs, credentialing and health‑insurance contributions. She said prior grant funds were fully expended and were distributed after a multi‑step application and reporting process.
Committee members asked about license‑exempt providers, oversight and audits, and exact counts of licensed versus needed slots. Wallner and DHHS cited a provider census and a Fiscal Policy Institute analysis that estimated a gap between licensed slots (~44,000) and a need of roughly 55,000 slots; Wallner emphasized that empty licensed classrooms exist statewide because of staffing shortages. A member requested available audit reports from DHHS; the chair noted a DHHS witness was present to answer such questions.
Representatives of early‑childhood organizations, YMCAs and providers, including Jackie Cowell (Early Learning New Hampshire), Liz Balsido (Waypoint), Deb Gallipo (Granite YMCA), Mary Ann Barter (Merrimack Valley Daycare Services) and others, testified in support of the backup general‑fund appropriation should TANF approval be denied. Witnesses cited improved retention metrics after prior grants, widespread business endorsements and the risk that classrooms will remain closed without workforce funding.
Representative Mooney announced a Division 3 work session on HB 15-66 for Monday, Feb. 9 at 10:00 a.m. in Room 230. The committee closed the hearing and forwarded the bill for further consideration.
Next steps: Division 3 work session on Feb. 9 to review federal guidance, DHHS audits and program implementation details.