HB 1566 — directing the department of health and human services to seek clarification from the Administration for Children and Families regarding the use of TANF reserve funds and repealing the requirement that the department of health and human services' biennial budget request include funding for certain child care workforce programs.

HB 1566-FN-A - AS INTRODUCEDAMENDED SESSIONBY 26-2487THE 05/08 HOUSE BILL11Mar2026... 1566-FN-A AN ACT making a contingent appropriation to the department of health and human services for the purpose of providing recruitment and benefit grants to child care employers.

0697h SESSION 26-2487 05/08 HOUSE BILL 1566-FN-A AN ACT directing the department of health and human services to seek clarification from the Administration for Children and Families regarding the use of TANF reserve funds and repealing the requirement that the department of health and human services' biennial budget request include funding for certain child care workforce programs.

Finance ───────────────────────────────────────────────────────────────── AMENDED ANALYSIS ThisThe bill makesdirects athe contingentdepartment appropriation to seek clarification from the departmentfederal ofgovernment healthregarding andthe humanuse servicesof forTANF recruitmentreserve funds and benefitto grantsrequest fora childwaiver carefor employerscertain ifuses theof federalsuch governmentfunds deniesthat the usefederal ofgovernment TANFdetermines reserveas fundsprohibited foruses. such purpose.

This bill also repeals the requirement that the department include funding for certain child care workforce programs in its biennial budget request.

HB 1566-FN-A - AS INTRODUCEDAMENDED 26-2487BY 05/08THE STATEHOUSE OF11Mar2026... NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT making a contingent appropriation to the department of health and human services for the purpose of providing recruitment and benefit grants to child care employers.

0697h 26-2487 05/08 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT directing the department of health and human services to seek clarification from the Administration for Children and Families regarding the use of TANF reserve funds and repealing the requirement that the department of health and human services' biennial budget request include funding for certain child care workforce programs.

1 DepartmentRequest offor HealthClarification andRegarding HumanUse Services;of TANF Reserve Funds.

RecruitmentNo later than August 1, 2026, the department of health and Benefithuman Grantsservices shall seek clarification from the federal Administration for Children and Families on the specific uses to which federal TANF reserve funds may be put, as well as any conditions surrounding their transfer to other funds, including the Child Care Employers;and Development Fund.

ContingentThe Appropriation.department shall specifically seek clarification regarding the ways in which TANF reserve funds may be used to support recruitment and retention of child care employees, including any alternatives to employment bonuses paid to providers.

AmendWithin 2025,one 141:431,month Iof receipt of the Administration's response, the department shall submit said response to readthe asjoint follows:fiscal committee and the house and senate finance committees.

I.If the Administration determines that such funds shall not be used for the purposes of this act, the department shall seek a waiver from any requirements prohibiting such use of the funds.

The sumsdepartment ofshall $7,500,000seek forsuch thewaiver fiscalwithin yearone endingmonth Juneof 30, 2026 and $7,500,000 for the fiscalAdministration's yeardetermination endingthat June 30, 2027 are hereby appropriated from federal TANF reserve funds toshall thenot departmentbe ofused health and human services for the purposepurposes of financingthis recruitmentact. and retention bonus and benefit grants for New Hampshire child care employers.

 2 TheRepeal. appropriation is contingent upon the department seeking formal approval from the federal Department of Health and Human Services to use the funds for the purposes specified in this section.

If2025, necessary,141:431, andVI, ifdirecting a waiver process is available, the department of health and human services shallto seekinclude athe waiveramount necessary to usefully thefund fundscertain forchild thesecare purposes.workforce programs in its biennial budget request, is repealed.

The3 departmentEffective shallDate. make the initial request no later than August 1, 2025, and upon receiving a determination, shall notify the fiscal committee of the general court of the decision received.

If by July 1, 2026, the federal government has either failed to make a determination or has denied the use of federal TANF reserve funds for the purposes specified in this paragraph, the sum of $15,000,000 for the fiscal year ending June 30, 2027, shall be appropriated to the department of health and human services for the purpose of financing recruitment and benefit grants for New Hampshire child care employers.

Said sum shall be nonlapsing, and the governor is authorized to draw a warrant out of any money in the treasury not otherwise appropriated.

2 Effective Date.

LBA 26-2487 12/4/2503/13/2026 HB 1566-FN-A- FISCAL NOTE AS INTRODUCEDAMENDED ANBY ACTTHE makingHOUSE a(AMENDMENT contingent#2026-0697h) appropriationAN toACT directing the department of health and human services to seek clarification from the Administration for Children and Families regarding the purposeuse of providingTANF recruitmentreserve funds and benefitrepealing grantsthe torequirement that the department of health and human services' biennial budget request include funding for certain child care employers.workforce programs.

ThisThe Office of Legislative Budget Assistant states this bill doeshas notno authorizefiscal newimpact positions.on state, county and local expenditures or revenue.

Estimated State Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Expenditures* $0 $15,000,000 $0 $0 Funding Source(s) General Fund Appropriations* $0 $15,000,000 $0 $0 Funding Source(s) General Fund *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill METHODOLOGY:

This bill provides general funds to the Department of Health and Human Services in the event that federal funds may not be used to finance recruitment retention bonus and benefit grants for New Hampshire child care employers.

 Chapter 141:431, Laws of 2025 (the FY26/27 budget trailer bill) appropriated $7.5 million of federal Temporary Assistance to Needy Families (TANF) reserve funds in each year of the biennium for this purpose.

 During the budget process, the Department testified that this use of TANF funds would likely be deemed unallowable by the federal government.

 For this reason, the trailer bill required the Department to seek federal authorization for this use of  the funds, and directed the Department to request a federal waiver if available.

 The current bill contains a nonlapsing general fund appropriation of $15 million in FY2027 in the event that, by July 1, 2026, the federal government has either failed to make a determination or has denied this use of federal TANF reserve funds.

 Based on its correspondence with the federal Administration for Children and Families, the Department has concluded that federal TANF reserve funds may not be used for the specified purposes.

Therefore, it is anticipated the entire $15 million general fund appropriation will be used by the Department for the purposes recruitment retention bonus and benefit grants for New Hampshire child care employers in FY 2027.

DepartmentNone of Health and Human Services