This bill proposes a contingent appropriation of $15 million to the New Hampshire Department of Health and Human Services for recruitment and benefit grants aimed at child care employers, should the federal government deny the use of Temporary Assistance for Needy Families (TANF) reserve funds for this purpose. Specifically, it amends the existing law to include a provision that if, by July 1, 2026, the federal government has not made a determination or has denied the use of TANF funds, the state will allocate the $15 million from the general fund for the specified grants. The bill also stipulates that this appropriation will be nonlapsing, allowing the funds to remain available for use beyond the fiscal year.

The bill builds on previous appropriations of $7.5 million from TANF reserve funds for each of the fiscal years 2026 and 2027, which were initially intended for recruitment and retention bonuses for child care employers. However, due to concerns that the federal government may deem this use of TANF funds unallowable, the Department of Health and Human Services is required to seek federal approval and potentially a waiver for these funds. The bill emphasizes the importance of securing funding for child care employers in New Hampshire, especially in light of anticipated challenges with federal funding.