ICYMI: Costly Kelly’s Botched Child Care Plan Officially Falls Apart

ICYMI: Costly Kelly’s Botched Child Care Plan Officially Falls Apart
 

In Case You Missed It, Costly Kelly has left New Hampshire child care providers in limbo after her botched plan and costly miscalculation have officially fallen through.  Federal dollars for the Temporary Assistance for Needy Families (TANF) program would have helped providers “recruit and retain employees.” This week, federal officials flatly rejected Ayotte’s proposal, leaving workforce grants dead in the water and child care centers to pay the price. 

For months, there has been “no headway” on the issue, and Ayotte never offered an alternative. More than a year later, New Hampshire’s child care providers are set to take another big hit thanks to Ayotte’s failures. And as Ayotte’s child care debacle comes full circle, WalletHub released new rankings that put New Hampshire’s early childhood education system “one of the worst” in the country — 48th out of 50. 

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NH Bulletin: Feds, DHHS give clear ‘no’ to TANF being used for childcare workforce grants

• After more than a year of debate, New Hampshire childcare providers received a direct answer this week on childcare workforce grant funding. 

• In a series of letters exchanged between federal officials, state officials, and an advocacy group, it has been determined that federal Temporary Assistance for Needy Families, or TANF, dollars cannot be used to fund the childcare workforce grant and that Child Care and Development Fund dollars cannot be used either. 

• In the state budget passed in June 2025, the Legislature appropriated $15 million in TANF funds spread over two years to pay for a workforce grant program aimed at improving New Hampshire’s childcare capacity and availability issues. The grant would help childcare programs recruit and retain employees through sign-on bonuses, health savings accounts, childcare tuition discounts, and more. 

• TANF is a federal program designed to help low-income families achieve economic security and stability. States receive federal TANF grants every year to go toward programming to help achieve TANF’s purposes. The state receives its annual award, and under federal law, 30% of funds can be transferred to a state’s Child Care and Development Fund account, the source of money for state childcare initiatives like the scholarship fund and Granite Steps for Quality. 

• Over the past year, various arguments circled the State House on whether and how TANF funds could be used to fund the workforce grant. After the legislative session ended, with no headway on the issue, childcare advocates turned their efforts toward the Executive Council. 

• [...]The Legislature and Gov. Kelly Ayotte adopted a budget that maximized the TANF transfer to avoid a waitlist “during a period of significant growth” of the childcare scholarship program.