The Trump administration's threat this week to withhold billions in federal child care money to states has New Hampshire’s providers and families desperate for answers. The federal money helps cover child care costs for nearly 5,000 children in the state.
Federal officials announced Tuesday on social media that they had frozen child care payments to Minnesota in the wake of fraud allegations there, and are now requiring all states to submit certain documentation to continue receiving funding.
Federal officials have not said whether federal payments will be halted until states provide the documentation. And it’s unclear what documentation is required.
The news came during a holiday week when state and federal officials were on vacation and unable to determine what impacts states may see. The White House did not issue a statement explaining the new requirements. A message to the press office was not returned.
New Hampshire received almost $30 million in 2023 for its Child Care Scholarship Fund. Nearly 500 child care providers use the money to lower costs for families.
Gov. Kelly Ayotte’s office and the state Department of Health and Human Services said in emails Friday that they are monitoring the situation.
“At this time, we have not received any notice from the federal government of a pause in childcare funding,” said John Corbett, the governor’s spokesperson. “The governor’s office is working closely with DHHS to continue to serve children and families across New Hampshire.”
Kathleen Remillard, spokesperson for the Department of Health and Human Services, said her office will keep providers up to date on any changes.
Marianne Barter, chairperson of the New Hampshire Child Care Advisory Council, serves families who rely on the scholarship program at her Concord child care center.
“I've had people calling me panicked that they're not going to have child care. And how much will it cost? And what should they do?” Barter said Friday. “And I don't have any good answers for anyone.”
The department provides the federal government detailed reports on how it uses the federal money and follow-up compliance reports. Barter said the department also audits the child care centers that receive the federal funding throughout the year.
Councilor Joe Kenney called on Ayotte to ask the federal government for an exemption if it freezes New Hampshire’s child care funds.
“Child care is the lifeblood of our economy in New Hampshire; without it, the economy stops,” Kenney told Ayotte.
Kenney also asked Ayotte to provide federal officials details on how the state monitors the scholarship program for fraud.
“We understand the intent and support any oversight measures that root out fraud,” he wrote, “but New Hampshire is not Minnesota.”
Barter said some providers in New Hampshire rely on child care scholarships for a few children while others receive federal subsidies for all their families.
“This is really ill advised when you mess with child care,” Barter said. “You’re looking at families who have to decide between safe care for their kids during the day and being able to work, pay their rent, or buy groceries.”
If there is a gap in federal funding, Barter hopes the state can cover the shortfall with what it contributes to the program.
The New Hampshire Child Care Advisory Council told providers in an email Friday to continue keeping detailed records of attendance and ensuring they have signatures of parents using scholarships.
“While no official notice has been issued by the White House, this information is understandably concerning for child care providers nationwide who rely on [federal] funding,” Shannon Tremblay, director of the council, said.
Tremblay said the "protective and preventative” child care subsidies for children involved with the Division of Children, Youth, and Families will not be affected because they are funded entirely by the state.
