Lawmakers at the New Hampshire State House spent much of Thursday debating a series of proposals aimed at improving access to child care across the state. While several ideas advanced, a key funding measure was temporarily set aside as senators weighed its financial impact.
The Senate voted to table Senate Bill 483, a proposal that would allocate $15 million in state funds to support a child care workforce grant program. The initiative is designed to help providers recruit and retain staff at a time when many centers are struggling with worker shortages.
The bill initially passed unanimously before senators voted to place it on the table, a procedural move that pauses the legislation until it is reconsidered later in the session. If it is not revived before lawmakers adjourn for the year, the proposal would effectively expire.
Sen. Cindy Rosenwald of Nashua, the bill’s lead sponsor, said the decision reflects broader budget caution at the State House.
“We’ve been tabling many of the spending bills coming out of the Finance Committee to see how the fiscal picture develops later this spring,” Rosenwald said. Even so, she noted that the Senate’s initial vote showed strong bipartisan recognition of the importance of the child care workforce.
The grant program was first launched in 2023 using federal pandemic relief funds. Lawmakers later attempted to continue it using surplus Temporary Assistance for Needy Families funds. However, federal officials denied that request last year, saying the program did not meet eligibility rules for those funds.
That rejection left lawmakers searching for a new funding source. While both parties have acknowledged the need for additional support, some Republicans have raised concerns about the state’s projected budget deficit.
Advocates warn that failing to maintain the grant program could worsen an already tight labor market for child care providers.
Shannon Tremblay, director of the state’s Child Care Advisory Council, said workforce challenges remain one of the biggest obstacles facing the sector. She said previous recruitment and retention grants helped programs keep experienced educators during a particularly difficult period.
“Providers consistently told us that those grants made a real difference in maintaining staffing levels,” Tremblay said.
Advocacy groups echoed that message. Jackie Cowell, executive director of Early Learning New Hampshire, said her organization will continue urging lawmakers to find a way to deliver the funding before the end of the current budget cycle.
While the Senate delayed action on the grant program, lawmakers moved forward with other proposals aimed at expanding child care access.
The House of Representatives approved House Bill 1433, which would create tax credits for businesses that help expand child care capacity. Under the proposal, companies that add at least 12 new child care slots could receive a credit equal to 50% of qualifying expenses for two years.
The program would cap total credits at $5 million per year and apply them against either the state’s business profits tax or business enterprise tax.
Supporters say the measure could encourage partnerships between employers and child care providers. State officials have heard growing concerns from businesses that a lack of available child care is making it harder to recruit workers.
A related Senate proposal, Senate Bill 654, also attempted to encourage employer involvement by offering tax credits to businesses that provide on-site child care or facilities located nearby. The bill also proposed a “parent hours” credit for companies that allow employees with children to work during typical school hours.
However, after approving the measure, senators also voted to table it for further review.
Sen. Donovan Fenton of Keene said the concept has merit but needs additional work, particularly regarding how the credits would function and their impact on state finances.
Another measure did move forward. Senate Bill 645 would expand eligibility for the state’s Child Care Scholarship Program by raising the income threshold from 85% to 95% of the state’s median income. The bill proposes funding the expansion through small allocations from tobacco and liquor tax revenue.
That proposal now heads to the Senate Finance Committee for additional review.
Taken together, the day’s votes highlight the complicated balancing act facing lawmakers. Demand for child care support continues to grow, yet many legislators remain cautious about committing new spending while the state evaluates its long-term budget outlook.
