In recent years, New Hampshire families have faced persistent and growing challenges with affordability and accessibility as they navigate the early care and education landscape. The average price for center-based child care for an infant and a four-year-old increased by about 32% from 2017 to 2025. During the same period, the total number of licensed providers declined by 120 programs, a 14% decrease.
In 2024, state policymakers implemented significant revisions to the New Hampshire Child Care Scholarship Program (NHCCSP), the state’s primary childcare assistance program. These changes expanded access and affordability for Granite State families. Following the first year of the NHCCSP expansion, the quarterly average enrollment increased by 46%, reaching 5,851 children in July 2026. However, enrollment growth has since slowed, while the number of licensed providers continues to decline.
Further expansion of NHCCSP enrollment is constrained by both the availability of child care providers and the public funding available to support the program. From State Fiscal Year (SFY) 2023, prior to the NHCCSP revisions, to SFY 2026, state funding declined by 2% despite rising enrollment. To sustain NHCCSP, the state has relied on available federal Temporary Assistance for Needy Families (TANF) funds. Federal guidance limits the amount of TANF money that can be used for NHCCSP, so TANF, while an important short-term backstop, cannot support sustained NHCCSP growth alone.
These funding constraints reflect broader limitations in New Hampshire’s childcare supply and in families’ access. While NHCCSP can help families afford care, a scholarship does not create a childcare slot. Expanding NHCCSP without strengthening other investments in provider capacity, workforce availability and the financial sustainability of childcare businesses may slow progress in expanding access to childcare.
Lack of access to childcare is a significant workforce constraint for New Hampshire businesses and the economy. Parents who cannot find affordable, accessible care may reduce their hours, leave their jobs or decline opportunities for advancement.
As a result of a shortage of childcare slots, an estimated $38 million to $59 million in business revenue was lost in 2025 due to reduced productivity and workforce disruptions. Families experienced an estimated $122 million to $190 million in lost income in a single year, as care constraints reduced work hours and had other career impacts.
Paired with an estimated $9 million to $15 million in forgone state and local tax revenue, these factors represent a total economic impact of approximately $169 million to $264 million.
Limited childcare supply and public funding have significant economic and fiscal implications for New Hampshire’s workforce and economy. Funding NHCCSP and investing in childcare overall may help families afford care and support workforce participation, business productivity and economic growth.
Dow Drukker is a senior policy analyst at the New Hampshire Fiscal Policy Institute. The NHFPI Policy Memo is a partnership of the NH Fiscal Policy Institute and NH Business Review.
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