New Hampshire Child Care Workforce Assistance Pilot

26 Mar

Overview

The New Hampshire Child Care Workforce Assistance Project (CCWAP) provides childcare assistance to childcare workers whose household income falls between 85% and 100% of the State Median Income. This six-month pilot project, running from January through June 2025, helps childcare workers afford care for their own children, addressing a key barrier to retaining qualified staff in the childcare sector.

Why It Matters

Childcare workers in New Hampshire often face a financial dilemma: they earn too much to qualify for traditional childcare assistance but too little to comfortably afford care for their own children. This creates a significant barrier to remaining in the profession.

By targeting assistance to childcare workers in this income gap, CCWAP addresses a critical workforce issue. The program limits family contributions to 7% of household income, making childcare more affordable for the very professionals who provide this essential service to other families. This approach recognizes that childcare workers are both professional caregivers and parents themselves, many of whom struggle with the same childcare costs that challenge the families they serve.

Quick Facts

Core Model: Childcare assistance for childcare professionals
Notable Feature: Reduces childcare costs for workers in the childcare sector, supporting workforce retention
Launch Date: January 1, 2025
Eligibility: Childcare professionals working at least 25 hours weekly in licensed facilities with household income between 85% and 100% of State Median Income
Current Funding: $2 million allocated for the six-month program
Program Duration: January 1, 2025, to June 30, 2025
Program Coverage: Statewide across New Hampshire

Background

The Child Care Workforce Assistance Project was established through Senate Bill 404, which passed in 2024 with strong bipartisan support. The program was created as a direct response to staffing challenges in the childcare sector, where low wages and high turnover significantly impact the availability of care for New Hampshire families.

The program is designed as a six-month pilot to evaluate its effectiveness as a workforce retention strategy before considering permanent implementation. The state allocated $2 million to fund this initial phase as a targeted investment in stabilizing the childcare workforce.

How it Works

The program operates through a cost-sharing model where families contribute a portion of childcare expenses:

Families pay 7% of their annual income toward childcare costs
CCWAP covers the remaining childcare expenses up to approved rates
Payments are made directly to childcare providers

The New Hampshire Department of Health and Human Services oversees the program, contracting with a private management organization to manage day-to-day administration, application processing, and payment disbursement. Payments to providers are issued monthly through an electronic payment system, streamlining administrative processes and ensuring reliable compensation.

Key Features

Income-Targeted Approach: Serves childcare workers with incomes between 85% and 100% of State Median Income who fall into the gap between assistance eligibility and affordability
Workforce Support: Specifically helps childcare professionals afford care for their own children, addressing a key barrier to workforce retention
Cost-Share Model: Caps family contributions at 7% of annual income, making childcare costs manageable
Direct Provider Payments: Benefits are paid directly to childcare providers, ensuring their financial stability
Pilot Evaluation: State will assess the program's impact on workforce retention and stability to inform future policy decisions

Policy Levers

Funding Allocation: Legislators allocated $2 million for the six-month pilot program
Eligibility Parameters: Set income requirements to target families who fall into the gap between existing assistance programs and affordability
Program Duration: Six-month implementation enables legislators to evaluate effectiveness before considering permanent funding
Work Requirements: Established minimum weekly work hours (25 hours) in licensed childcare facilities

Results

As a newly implemented pilot program, results are not yet available. Following the program's completion in June 2025, the Department of Health and Human Services will evaluate its impact on:

Childcare workforce retention and recruitment
Financial stability for childcare workers
Overall capacity and stability of New Hampshire's childcare system

The state will provide a detailed report to the legislature by November 2025, which will inform decisions about potential continuation and expansion of the program.