Data shows NH Child Care Scholarship Program is being used more than ever before 

With the price of childcare for New Hampshire families rivaling college tuition, more are looking to the state’s scholarship program for assistance. New data shows that in the past fiscal year, usage of the program increased, while the state is spending over $12 million more than the previous year. 

The New Hampshire Child Care Scholarship Program is a subsidy voucher program that helps eligible families pay for childcare and out-of-school time care for children under age 13, or 18 if they have a disability. The state directly pays childcare programs a predetermined weekly standard rate, and parents pay a copayment towards tuition depending on their level of eligibility. 

The 2026 fiscal year, which ended June 30, brought the largest increase in usage of the scholarship that the state has seen. On average, 4,979 children were using the state scholarship in the past year, up from an average of 3,984. 

Since 2024, scholarship usage has increased by 75%, after declining during the COVID-19 pandemic. The number of children enrolled in the program also increased after the eligibility requirements for the program expanded to include more families. 

In order to be eligible for the program, parents must have children in the eligible age range, meet the activity requirement —have a job, be looking for a job, or be in school or a training program— and have a household income that is eligible. 

In 2023, the state Legislature expanded the rate of eligibility for the scholarship program to 85% of the state median income, meaning that families whose household income was less than that became eligible for the first time. Changes went into effect in 2024. 

With increased usage came increased costs. Since 2024, expenditure for the scholarship has more than doubled, and the state has diversified how it pays for it. 

The childcare scholarship program is funded using federal Child Care and Development subsidies and some state general dollars. Federal law allows some Temporary Assistance for Needy Families, or TANF, funding to be used as well, under a strict set of rules. 

According to Dow Drukker, senior policy analyst at the New Hampshire Fiscal Policy Institute, around 76% of scholarship dollars were funded using TANF dollars in the second quarter of 2026. Over the past 12 months, about 33% of scholarship expenditures have come from TANF, a larger percentage of TANF usage compared to past years. 

“That’s not unusual to over rely on federal dollars, given towards the end of fiscal year, agencies want to use up their federal dollars,” he said. 

Under the guidance of Gov. Kelly Ayotte, the state Department of Health and Human Services maximized the amount of TANF money eligible for childcare use to prevent a waitlist for the scholarship. 

Monthly costs for the scholarship program vary for a number of reasons, according to officials at the Bureau of Child Development and Head Start Collaboration. Holidays, summer vacation, and the new school year, when many children age out, all impact the number of children enrolled, connected to a provider, and receiving care. 

Every few months, the bureau presents scholarship information to the Child Care Advisory Committee, including the number of children enrolled in the scholarship program but not connected to providers and actively receiving care. The majority of children who fit this categorization are school-age children. The department does not track individual cases of why children would not be connected. 

While enrollment in the scholarship is up, only a small number of eligible children in the state are using it. According to a 2024 UNH Carsey School of Public Policy study, over 55,000 children under age 13 are eligible for the scholarship. The study cites lack of awareness, substantial paperwork, and complexities in maintaining eligibility as possible reasons. 

Also, of the state’s early childhood and school-age programs, only about 70% to 80% of childcare programs statewide accept scholarship funds. 

Some providers have said the state’s reimbursement system does not account for the “true cost” of providing childcare and would prefer to not offer it to avoid dealing with the paperwork. 

Scholarship reimbursement rates to providers are redetermined every three years when the state submits its plan to the federal government on how it will use the Child Care and Development Fund. The plan requires each state to submit its findings from a recent market rate survey, which asks questions of providers to determine the “price tag” of childcare tuition and help set reimbursement and cost share rates. The next survey will start in October and will be run by the Carsey School and the bureau. 

According to data from the Fiscal Policy Institute, the average cost of childcare for a two-parent household with a 4-year-old and infant in New Hampshire was about $30,000, costing families about 24% of a family’s income. The federal government recommends 7% of a family’s income go toward childcare. 

As scholarship enrollment increases, Drukker said there could be a potential “fiscal bottleneck” concern in the future regarding funding for the scholarship program. The program’s increased usage, along with New Hampshire only contributing the minimum dollar requirement to the program, could lead to some “big questions.” 

“We’re leaning pretty heavily on (TANF),” Drukker said. “What do the next six months look like, and what does that mean for the scholarship program? Because we haven’t had a waitlist since 2011.”