New Hampshire families struggling with the high cost of child care now have expanded access to financial assistance through the New Hampshire Child Care Scholarship Program (CCSP). Recent policy changes have broadened eligibility, allowing families earning up to 85% of the state median income (SMI)—$113,432 for a family of four—to qualify for support.
Growing Enrollment and Utilization
With an estimated 55,000 children under age 13 eligible for CCSP, participation has steadily increased. As of October 2024, 4,348 children were enrolled, reflecting a 21% growth between January and June 2024. Among enrolled families, 89% are actively using their scholarships, demonstrating the program’s impact in connecting families with child care providers.
How the CCSP Works
Eligible families must meet income requirements and participate in work or work-promoting activities
to qualify. Once approved, families can select a state-licensed child care provider who accepts CCSP payments. Currently, about 70% of the state’s licensed providers participate in the program.
Cost-Sharing for Families
The CCSP sets a weekly family “cost share”, which determines how much a family contributes toward child care costs:
- Lowest-income families pay $0
- Families just above federal poverty guidelines (FPG) pay $5 per week
- Families earning between 138% of FPG (~$43,000 for a family of four) and 85% of SMI pay no more than 7% of their income
While these capped contributions significantly reduce out-of-pocket expenses for families, many remain unaware of the program due to limited outreach and administrative barriers. Surveys conducted between 2019 and 2022 found that one-third to one-half of families had never heard of the CCSP, highlighting the need for increased awareness and simplified application processes.
Challenges for Child Care Providers
Although recent CCSP improvements have increased provider reimbursement rates, challenges remain. Child care providers are reimbursed a set amount, which may be less than their tuition fees.
In such cases, families may be billed for the difference through a co-pay”. Some providers opt to absorb the loss to ease the financial burden on low-income families.
To further strengthen the program, policymakers and advocates suggest:
- Increasing reimbursement rates to better reflect the actual cost of child care
- Expanding outreach efforts with community organizations to raise awareness
- Simplifying administrative processes to make applying and maintaining eligibility easier for families
A Step Toward Strengthening Child Care in New Hampshire
As one of the few direct funding mechanisms for both families and child care providers, the CCSP remains essential in supporting New Hampshire’s early childhood education system. While recent changes have made the program more accessible, ongoing efforts to reduce administrative barriers and increase financial support for providers will be critical in ensuring its long-term success.