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Committee hears warnings that ERDC shortfall could force TANF bypass pause under SB 1535
Summary
DELC and advocates testified SB 1535 would allow the Department of Early Learning and Care to temporarily pause TANF bypass enrollment to manage a rapidly growing ERDC caseload; witnesses warned a pause without additional funding could cut service from about 12,000 to 6,000 families and endanger providers.
Senate Bill 1535 directs the Department of Early Learning and Care to study childcare, convene a work group on liability insurance, and gives DELC authority to align TANF bypass rules with other bypass populations so it could temporarily pause new TANF bypass enrollments to manage caseload growth.
Alyssa Chatterjee, DELC director, and Dorothy Spence, early learning programs director, explained ERDC is a voucher program that now serves about 12,000 families and 25,000 children and that federal 12‑month continuous eligibility implemented in 2023 has slowed attrition and increased caseload growth. Chatterjee said DELC currently cannot pause TANF bypasses but that SB 1535 would provide that alignment authority; she projected that a pause could be needed for about a year starting this summer, reducing caseload to roughly 6,000 families through attrition without removing currently eligible families.
Elena Barreto of the Children's Institute warned the program faces a $73–$88 million shortfall and could run out of funding by January 2027; she said pausing the TANF bypass without additional funding could halve ERDC’s caseload, force thousands of families to lose care, risk closures for many small providers and push parents out of the workforce. Courtney Varenault (For All Families Oregon) and other advocates urged lawmakers to pair any authority to pause with legislative funding to avoid those harms. Hans Bernard (Oregon Trial Lawyers Association) recommended the work group include representation from families who experienced harm in childcare settings.
Chair Reynolds closed the hearing, said some registered speakers would be carried over to Feb. 12, and noted the committee intends additional work sessions on related bills.
