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New Hampshire Aims to Increase Child Care Capacity Amid Workforce Shortages

Strategic Insights

— 2 min read

The New Hampshire Department of Health and Human Services has announced new goals for increasing child care capacity in the state, but some advocates are concerned that addressing workforce shortages is being overlooked. The department's Roadmap 2025-2027 aims to tackle constraints in the child care system, including workforce shortages, lack of capacity in centers and programs, and high tuition prices. The department has set two goals: to enroll 10% more children from high-need communities by September 2026 and to assess and quantify the current funding landscape. However, advocates argue that the lack of workforce is the biggest issue, and without addressing it, increasing capacity will not lead to meaningful change.

Key Takeaways:

  • The New Hampshire Department of Health and Human Services has set a goal to enroll 10% more children from high-need communities in child care programs by September 2026.
  • The state's capacity to provide licensed care for children under age 5 dropped almost 13% between 2017 and 2023.
  • There was an average annual shortage of 9,107 child care slots between 2019 and 2023.
  • Child care providers in New Hampshire get paid nearly $9 an hour less than the average working Granite Stater, making it hard to hire more staff.
  • The state's Child Care Scholarship program helps subsidize costs, but advocates say there is not enough state investment to stabilize the care system.
  • The Early Care and Education Funders Collaborative will conduct a fiscal analysis to identify sources of funding and barriers to access.
  • The analysis will consist of cost modeling and visioning, which will involve stakeholders to find long-term solutions to the problem.
  • The state's roadmap also outlines plans to invest in the department's workforce, improve existing community health initiatives, and enhance customer service.

Statistics:

  • 10%increase in child care access for high-need communities aimed for by September 2026.
  • 13% decrease in the state's capacity to provide licensed care for children under age 5 between 2017 and 2023.
  • 9,107 average annual child care slots shortage between 2019 and 2023.
  • $9 an hour pay gap between child care providers and average working Granite Staters.
  • 11.9% of a married couple's income spent on child care in New Hampshire (2023).
  • 37.3% of a single parent's income spent on child care in New Hampshire (2023).
  • 17,000 Granite Staters out of work in 2023 due to caring for a child not enrolled in school or a care program.
  • $9 million to $14.1 million in potential tax revenue lost in 2023 due to unavailable child care slots.

Sources:

  • (https://www.dhhs.nh.gov/sites/g/files/ehbemt476/files/documents2/dhhs-roadmap-2025-2027.pdf) New Hampshire Department of Health and Human Services Roadmap 2025-2027
  • (https://nhfpi.org/resource/the-economic-impact-of-the-granite-states-child-care-shortage/) New Hampshire Fiscal Policy Institute: The Economic Impact of the Granite State's Child Care Shortage
  • (https://nhfpi.org/resource/high-prices-and-low-availability-of-child-care-in-new-hampshire-challenges-continue-in-2025/) New Hampshire Fiscal Policy Institute: High Prices and Low Availability of Child Care in New Hampshire: Challenges Continue in 2025
  • (https://info.childcareaware.org/hubfs/2023%20Price%20Fact%20Sheet/New%20Hampshire%202023_Price%20of%20Care.pdf) Child Care Aware: 2023 Price Fact Sheet for New Hampshire

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