Tennessee House passes 'Promising Futures' childcare pilot after debate over funding and administration

The Tennessee House of Representatives on April 22 passed House Bill 19-79, known as the Promising Futures Act, a three-year pilot program to support childcare workforce recruitment and an employer-state partnership called CareShare Tennessee.

Chairman White, the bill’s sponsor, told the chamber the pilot would provide scholarships aimed at recruiting and retaining childcare workers and would create a partnership model between businesses, employees and the state. "We're continuing to try to address child care availability and affordability in our state," White said, describing the pilot as a combination of workforce scholarships and employer participation.

Members pressed the sponsor about financing and administration. Representative Powell asked whether the bill’s funding mechanism relied on taxes on hemp or vape products; White replied that any such language had been removed and that the pilot would be funded through other state revenue sources. "In the original bill, we were looking for a funding source where you had to create and and but, no, we took that amendment out," White said.

Representative Pearson and other members raised questions about geographic equity, asking how the pilot would be deployed across the state and whether employers and families in Memphis and rural counties would have the same access. "Is there a way that we are making sure that kids from Memphis through Mountain City are getting access to this pilot program?" Pearson asked. White said the pilot would be administered through a third-party vendor working with the Department of Human Services and that the design was intended to be statewide and evidence-based.

Chairman Williams noted where recurring funding would come from, saying the bill could tap funds linked to a previously passed wire-transfer bill and that "a portion of those funds from the wire transfer bill is what's funding this in a recurring ... about $5,600,000 recurring." That explanation was cited on the floor as the reason the pilot could be funded without the hemp/vape revenue previously discussed.

The bill also expands eligibility for a related payment-assistance program (Smart Steps), raising the income cap to 150% of median income to allow more families to qualify for assistance during the pilot.

The House carried the motion and the bill passed on third and final consideration; the Clerk recorded the vote as 73 yeas and 8 nays. The measure will proceed per legislative process and, as the sponsor described, be administered by the Department of Human Services with the pilot managed by contracted third-party vendors for initial implementation.

Next steps: the pilot is set as a three-year program and will be evaluated during that window; the department and any contracted vendors will report on administration and outcomes as required by the bill.