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Committee backs using TANF transfers to clear Smart Steps childcare wait list
Summary
Senate Bill 1921 would transfer up to $25 million in TANF funds into the Child Care Development Fund to address a roughly 10,000-family wait list for Smart Steps; DHS testified the transfer would trigger a 15% administrative cap (~$3.5M) and the bill advanced out of committee.
Senate Bill 1921, sponsored by Senator Massey, would use unobligated TANF funds to address the Smart Steps childcare wait list and expand access for eligible working families.
Massey told the committee the amendment uses federal TANF unobligated funds to "clear the childcare wait list and ensure eligible working families can participate in the Smart Steps program," citing a wait list the sponsor described as "up to about 10,000" families. Callen Baggett, assistant commissioner for the Department of Human Services, testified the state was notified in the fall that Tennessee's Child Care Development Fund allocation decreased by about $44,000,000. Baggett said the proposed $25,000,000 transfer from TANF to CCDF would require compliance with a federal administrative cap and that "the fiscal note reflects an other fiscal impact of $3,500,000 to reflect that 15% transfer."
Committee members pressed on whether the transfer would constitute misuse of TANF; Baggett and the sponsor said the TANF-to-CCDF transfer is an eligible use and that the departmental transfer would prioritize childcare within TANF funds. Several members emphasized concerns about trade-offs for other TANF-funded programs but the committee adopted the amendment and passed the bill to finance/ways & means.
