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DHS says $44M childcare funding drop tied to federal free‑and‑reduced‑lunch data; waiting list at 8,000
Summary
DHS told lawmakers a $44 million reduction in the Child Care Development Fund resulted from federal calculations tied to free and reduced‑price lunch counts; the agency said the SmartSteps waiting list is about 8,000 families and it is seeking federal data that explains the reduction.
Lawmakers pressed DHS about a $44,000,000 reduction to the Child Care Development Fund that emerged late in the previous budget cycle. Commissioner Clarence Carter said the cut stemmed from a change in federal inputs used to calculate funding levels tied to counts of children eligible for free and reduced‑price lunch.
"Because of a decrease in the number of children in Tennessee receiving free and reduced lunch... that calculation ended up impacting our childcare and development fund to the tune of $44,000,000," Carter said. The department told the committee it was seeking Food and Nutrition Service data to understand how the federal calculation produced such a large reduction and noted Tennessee was among three states significantly impacted.
DHS said the SmartSteps waiting list is currently about 8,000 families and that adding resources would be the primary lever to shrink the queue. The agency also described actions taken with state appropriations — staff retention grants, capital grants and new care partnership awards — that it said produced about 20,000 additional childcare slots over the prior four years.
Members asked if TANF transfers could address waiting‑list needs; DHS said transfers are possible under certain rules and the department is reviewing the option. DHS emphasized that program access and eligibility outreach matter and said it would coordinate with the Department of Education to better understand certification and enrollment processes affecting the calculation.
