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Work session examines $15 million childcare workforce ask and TANF limits
Summary
Division 3 reviewed HB 15‑15 (repeal) and HB 15‑66 (contingent appropriation) covering childcare workforce grants created in prior budgets. Providers said 2023 funds helped avert closures and raise wages; DHHS explained TANF‑to‑CCDF transfer rules (30% limit) and said the TANF balance has been drawn down to an estimated $20 million, complicating reliance on federal transfers.
House Finance Division 3 discussed two related measures, HB 15‑15 and HB 15‑66, which address a childcare workforce grant program authorized in prior budgets and a $15 million contingent appropriation to maintain recruitment and retention grants.
Provider testimony emphasized the program’s practical effects. Jackie Cowell of Early Learning New Hampshire told lawmakers that funding authorized in 2023 helped many centers survive and that the proposed grants are “the bare minimum” to recruit and retain staff. Mary Anne Barter, who runs local childcare programs, said prior grant dollars allowed her to raise wages (her agency’s floor moved to roughly $18/hour) and to avoid closing classrooms. "It costs, not counting construction, but at least $5,000 just for the materials to open up that classroom," Barter said, arguing that staffing shortages — not buildings — are the principal barrier to expanding capacity.
Department officials described federal rules and the practical limits of TANF funding. Chris Santanello and Brian Clark said federal guidance allows TANF money to be used in two ways: direct payments for TANF‑eligible children's care, or transferring up to 30% of TANF into the Child Care and Development Fund (CCDF). The department has already used the maximum allowable transfer to CCDF to avoid a scholarship waitlist; they projected a TANF balance of roughly $20 million at the end of the biennium and cautioned that the balance has fallen from substantially higher levels in prior years.
Lawmakers discussed three staff options: (1) delete the statutory section entirely (HB 15‑15), (2) provide $15 million from general funds (HB 15‑66), or (3) pursue more definitive federal guidance on allowable TANF uses and potential waivers. Chair Mooney said she would distribute an amendment aimed at re‑asking the federal government specific, pointed questions about whether the TANF balance or transfers can fund the program as written.
Department officials estimated that in prior implementation more than 400 providers and roughly 5,000 employees benefited from earlier program funding; they also said the TANF balance is not a long‑term guaranteed revenue source and recommended caution when building ongoing commitments on current TANF balances.
The committee requested a clearer breakdown of TANF balance history, projected receipts and drawdowns, and a more precise list of how many classrooms remain closed for lack of staff. Members scheduled follow‑up work and said they would coordinate with Senate sponsors and the department to craft targeted federal questions and, if needed, fallback general‑fund language.
