New Hampshire Childcare Funding Faces Uncertainty Amid Federal Review

New Hampshire’s childcare providers and families are grappling with uncertainty following a recent announcement from federal officials regarding potential delays in childcare funding. The Trump administration’s warning to withhold billions of dollars in federal childcare subsidies has left many in the state seeking clarity about the future of their funding. This funding is crucial as it supports childcare for nearly 5,000 children across New Hampshire.

On March 5, 2024, federal authorities announced via social media that they had frozen childcare payments to Minnesota due to allegations of fraud. In light of this, they are now requiring all states to submit additional documentation to continue receiving funding. Currently, it remains unclear whether this freeze will impact payments to New Hampshire or what specific documentation is needed.

State Officials Monitoring Situation

During this holiday week, state and federal officials are largely unavailable, raising concerns about how these developments may affect childcare services. The White House has not provided any official statement to clarify the new requirements, and inquiries to their press office went unanswered.

New Hampshire received almost $30 million in 2023 for its Child Care Scholarship Fund, a vital resource used by nearly 500 childcare providers to reduce costs for families. John Corbett, spokesperson for Governor Kelly Ayotte, stated, “At this time, we have not received any notice from the federal government of a pause in childcare funding.” He emphasized that the governor’s office is working closely with the Department of Health and Human Services (DHHS) to ensure that services continue for children and families.

Kathleen Remillard, also a spokesperson for the DHHS, assured that her office would keep providers informed of any changes. Meanwhile, Marianne Barter, chairperson of the New Hampshire Child Care Advisory Council, expressed concern for families relying on the scholarship program. “I’ve had people calling me panicked that they’re not going to have childcare,” Barter shared. “And I don’t have any good answers for anyone.”

Concerns Over Economic Impact

The DHHS regularly submits detailed reports to the federal government on the use of funds, along with follow-up compliance reports. Barter noted that the department also conducts audits of the childcare centers benefiting from federal funding throughout the year.

As the situation unfolds, Councilor Joe Kenney urged Ayotte to seek an exemption from federal freezes should they occur. He emphasized the critical role of childcare in the state’s economy, stating, “Childcare is the lifeblood of our economy in New Hampshire; without it, the economy stops.” Kenney has also called on Ayotte to provide federal officials with detailed information about the state’s monitoring of the scholarship program to combat fraud effectively.

Barter highlighted the reliance of many providers on childcare scholarships, with some centers depending on these funds for a few children, while others receive subsidies for all families. “This is really ill advised when you mess with childcare,” she said, noting that families could face difficult choices between safe childcare and meeting basic living expenses.

In response to the uncertainty, the New Hampshire Child Care Advisory Council advised providers to maintain meticulous records of attendance and secure parental signatures for scholarship use. Shannon Tremblay, director of the council, acknowledged the anxiety among childcare providers across the country, stating, “While no official notice has been issued by the White House, this information is understandably concerning for childcare providers nationwide who rely on federal funding.”

Despite the troubling news, Tremblay reassured that the state-funded protective childcare subsidies for children involved with the Division of Children, Youth, and Families would remain unaffected, as they are entirely funded by state resources. As New Hampshire navigates this uncertain landscape, the commitment to support families and childcare providers remains a priority for state officials.