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Department seeks $16M to expand childcare slots as $14M one‑time award remains unreleased
Summary
Department of Health & Welfare asked the Joint Finance‑Appropriations Committee to approve about $16M for year‑two childcare capacity building after absorbing the Idaho Child Care Program; the agency said an earlier $14M one‑time federal award has not yet been released while it completes a provider review and establishes program‑integrity staffing.
Juliette Sharon, director of the Idaho Department of Health and Welfare, told the Joint Finance‑Appropriations Committee that the department is seeking roughly $16 million in federal funds in fiscal 2027 to expand childcare capacity through the Idaho Child Care Program (ICCP).
The department absorbed ICCP during a recent reorganization and the change—Paloney told lawmakers—caused a large increase in the agency’s FY2026 appropriation after the division inherited about $62.7 million in ICCP funding and a one‑time $14 million federal block grant. Morgan Paloney, a budget and policy analyst with the Legislative Services Office, noted the reorganization makes year‑to‑year comparisons imperfect.
“These funds are intended to build new capacity for childcare providers across our state,” Director Sharon said. She described the $16 million request as a continuation of a multi‑year pot that includes $14 million appropriated last year and additional year‑three funds, and she confirmed the source as the Child Care and Development Block Grant (CCDBG).
Sharon said the ICCP capacity funds are aimed at providers—not direct family subsidies—and listed examples such as start‑up costs for in‑home providers, equipment or other purchases that allow new programs to open in underserved and rural communities. She added the department intends to target expansions toward providers that will create new contracted childcare slots.
Lawmakers pressed officials on whether the $14 million previously appropriated has been spent: Representative Bruce asked how many providers the initial appropriation reached and how many children have been served. Sharon replied the department has not yet released the $14 million pending a department‑wide ‘‘3‑60’’ review of every ICCP provider and confirmation that the department will follow the legislature’s intent language; she said program staff are a few weeks into that review and will report back to the committee.
To strengthen oversight, the department requested five additional program‑integrity positions—including a fraud investigator, program specialists and a financial specialist—to support a complete annual review of providers and to pursue recoveries where appropriate. Sharon said historical staffing supported audits of roughly 25% of providers per year and that the requested positions would enable more comprehensive oversight.
Chair and members asked for follow‑up details about per‑child costs, how the department will verify that funding creates new slots rather than moving existing children, and timing for release of the prior $14 million. Paloney and Sharon said they would provide additional documentation and updates to members.
The committee did not take a vote on the request at the hearing; staff and agency follow‑ups were requested and the department said it would return with additional data on slot verification, release timing for the $14 million, and specifics about the proposed program‑integrity roles.
