Majority of Investments in New Hampshire’s Child Care Sector Provided by Federal Government

Federal funds accounted for approximately 72.8 percent of the $38.8million allocated to New Hampshire’s child care sector in Federal Grant Year 2023. The majority of these federal funds, including federal discretionary funding and the federal matching portion, vary from year to year relative to a proportional formula that factors in characteristics of New Hampshire’s child population compared to all children in the U.S., including the number of children receiving free and reduced-price lunches. The remaining approximately $4.5 million is comprised of federally mandated funds that do not change year to year. New Hampshire’s maintenance of effort funding also doesn’t change and amounts to about $4.6 million a year, while State matching funds are based on the Medicaid program’s Federal Medical Assistance Percentages (FMAP) rate. 

Learn more in NHFPI’s February 2024 Issue Brief: The State of Child Care in New Hampshire: End of One-Time Federal Investments May Reduce Industry Stability