Nearly two years after the State of New Hampshire expanded access to families for child care assistance, the number of children enrolled in the State’s key assistance program and connected with an early care and education provider has increased by about 81%. The eligibility changes to the New Hampshire Child Care Scholarship Program (NHCCSP) made assistance accessible to many more families starting in January 2024, and enrollment began to rise quickly after expansion. Enrollment growth has slowed considerably while many potentially eligible children remain unenrolled. However, State fiscal constraints may limit future access to NHCCSP, which could negatively affect some parents’ and caregivers’ ability to participate in the workforce.

The recent expansion to NHCCSP eligibility was signed into law as part of the State Budget passed in June 2023, but full implementation did not begin until halfway through State Fiscal Year (SFY) 2024. This expansion was motivated in part by the rising cost of early care and education for families; between 2022 and 2024, annual child care center tuition prices for an infant and a four-year-old in New Hampshire averaged nearly $30,000.

The program’s expansion was financed with three different sets of resources: State General Funds generated by State revenue sources, federal Child Care and Development Fund dollars, and a backstop of Temporary Assistance for Needy Families (TANF) dollars available from the annual federal block grant program.

Reaching More Families, Helping Providers 

The NHCCSP helps families of eligible children pay for child care. Parents must be working, seeking work, or enrolled in a qualifying training, mental health, or substance misuse treatment program. A child is eligible to receive the child care scholarship if they are 1) a resident of New Hampshire, 2) residing with a parent, caretaker relative, or legal guardian, 3) under thirteen years of age, or under eighteen years of age if the child experiences a disability or “significant special need” that limits a child’s ability to care for themselves, 4) a U.S. citizen or certain eligible non-citizen, such as a lawful permanent resident, asylee, or refugee, and 5) part of a household that meets income eligibility requirements.

The expansion in eligibility and benefits had three main components.

• The maximum eligible income for families to remain enrolled in the program increased from 250% of the Federal Poverty Guidelines to 85% of the State Median Income. In 2026, that increase was equivalent to shifting from a maximum eligible annual income of $82,500 for a household of two adults and two children to $124,595, making many more households potentially eligible.
• The expansion also reduced the cost-sharing required of participating families. The new policy limited the amount families are expected to pay to 7% of household income. The amount was further limited to a $5 per week payment for families at or under 138% of the Federal Poverty Guidelines, with no payment required for families in poverty, or at or below 100% of the Federal Poverty Guidelines ($33,000 per year for a family of four in 2026).
• The reimbursement given to early care and education providers, such as child care centers, for participating in the program was increased. The State conducts a market rate survey to determine the amount of money charged for child care. Previously, reimbursements to child care centers were limited to 60% of the price charged for infants and 55% for older children. The 2023 expansion increased the amount to 75% of the market rate survey.

While increased provider reimbursements were implemented relatively quickly following the recent changes to the program, implementation of the expanded income eligibility and new caps on family contributions were delayed until January 2024.

With these expansions, many more families became eligible for NHCCSP, and providers started receiving higher reimbursement rates. The effects on enrollment were relatively clear after the expansion took effect for families.

Enrollment Grows, Then Stalls 

The number of children enrolled in NHCCSP and connected to a child care provider, meaning the State has identified them as having billed for services, was 2,660 in December 2023, the month before the family assistance expansion took effect. That total was 12.7% lower than the 3,011 children enrolled in December 2021, two years before, and 22.7% lower than the 3,439 children enrolled in July 2021.

After the expansion went into effect, from January 2024 through July 2025, enrollment increased by an average of 109 children per month, and declined during only one month (November 2024) during that period. The July 2021 enrollment level, two and a half years before the expansion, was followed by an uneven decline prior to December 2023, and was surpassed by August 2024 after eight months of expanded eligibility.

However, enrollment growth may have plateaued, although the data available to indicate this trend are still limited. While peak enrollment following the post-expansion increase occurred in September 2025 at 4,865 children, the number of children enrolled and connected to a child care provider declined in August, October, and November of 2025. The latest data from the New Hampshire Department of Health and Human Services’ Operating Statistics Dashboard show 4,802 children connected to a child care provider in November 2025. More data will confirm whether this lack of growth is a trend or a temporary pause.

Potential Causes for Slowdown Vary 

As these data reflect the number of children enrolled and connected with a provider, the availability of open early care and education slots could be a constraint. According to the Carsey School of Public Policy at the University of New Hampshire, the number of children enrolled in NHCCSP, including those who are not connected to a provider, was 5,817 in December 2025. While data on the size of the gap between enrolled children and those connected to a provider are not available for the entire period since expansion, a widening gap in the future could suggest more limited early care and education availability for NHCCSP enrollees. Workforce shortages and rising care costs can create challenges for providers, limiting child care availability for Granite State families. NHFPI analysis of data from 2023 suggests that each unavailable early care and education slot that was needed for a family cost the economy, including families, businesses, and state and local taxes, a combined $22,400 to $35,000 that year.

Available data on likely child care needs and eligibility suggest enrollment could rise substantially. A separate 2025 analysis from the Carsey School indicated that as many as 55,000 Granite State children are eligible for NHCCSP. If enrollment growth stalls for an extended period, it may indicate that outreach efforts for the NHCCSP eligibility expansion are not reaching a significant number of families who would benefit from these services.

Resource Constraints May Impact Future Access 

The State, however, may need to bolster available funding for NHCCSP to maintain these key supports. The increased enrollment and benefit amounts have led the State to tap into the backstop funds available through the TANF program. These funds were deployed to help ensure no NHCCSP waitlist is instituted due to a lack of funds. However, only 30% of TANF funds may be used to bolster NHCCSP under federal rules, and separate State decisions on the use of these funds further limit that amount to 20%.

To avoid a waitlist for funding and maintain current services, the State may need to allocate more resources to NHCCSP during this State Budget and through mid-2027, according to the New Hampshire Department of Health and Human Services. The Department indicated it will provide updates during this budget biennium on whether and when its projections indicate additional funding will be needed to avoid a waitlist for this support for New Hampshire’s children and workforce.