Committee opens review of child‑care licensing and program evaluation; staff map multi‑month approach

The Human Services Interim Committee opened a program evaluation and licensing review of childcare services after Legislative Council staff presented background materials and Department of Health and Human Services (DHHS) officials outlined next steps for a multi‑month study.

Why it matters: The 2025 Legislature required both a program evaluation of childcare services and a targeted study of childcare provider licensing. Childcare policy affects public‑sector spending, the state’s workforce participation and the ability of parents to access affordable, quality care.

What committee members heard

Legislative Council staff summarized the statutory duties created by House Bill 1119 (2025). The bill directed a Legislative Council program evaluation of DHHS childcare services that will include a review of laws, administrative rules, licensing standards, funding sources and program outcomes. The legislation separately directed a study of childcare provider licensing, with input from DHHS and a new advisory committee.

Jessica Thomason of DHHS outlined the department’s proposed sequencing. DHHS staff described licensing workloads (about a dozen full‑time licensers, roughly 250 inspections a month) and said an automated background‑check system for childcare employees will go live soon. The department proposed an October–March calendar for a combined advisory committee and public/provider input process and suggested monthly meetings to produce recommendations for delivery to legislative management by June 30, 2026.

Numbers and capacity

Committee staff presented a snapshot of licensed capacity: about 38,182 licensed childcare spaces in August 2025 across ND, with a mix of center‑based and in‑home providers. Family and group home providers account for a majority of licensed programs but a smaller share of total licensed capacity, while larger centers represent fewer programs but a larger share of capacity.

The committee also reviewed state funding streams. The Child Care Development Fund (CCDF) is the primary federal funding source; North Dakota also uses state general‑fund appropriations for targeted grants and quality improvements. Committee members heard that the state had increased CCDF‑eligible income limits to 85% of state median income and that service usage — the number of families and children receiving childcare assistance — rose sharply following recent appropriations.

How the study will proceed

DHHS proposed a combined approach: staff will help convene the new advisory committee the law requires, hold joint DHHS/advisory meetings to review rule and policy crosswalks, collect provider input via regional meetings and surveys, and request technical submissions from Head Start, public schools, childcare resource and referral agencies, and tribal programs. Legislative Council and DHHS staff recommended forward‑looking measures in four domains — availability, affordability, quality and workforce impact — and asked for committee guidance on priorities for the program evaluation.

Committee actions and next steps

No formal board or legislative votes were held. Committee members asked Legislative Council and DHHS to (1) propose advisory‑committee membership lists to legislative management for appointment, (2) prepare a one‑page status summary for future meetings, and (3) coordinate a statewide provider input schedule that includes both in‑person and virtual options.

The committee indicated it will seek county‑level maps of licensed capacity, childcare deserts and wait lists, and requested additional analysis on the childcare assistance program’s “penetration rate” — the share of eligible children receiving assistance — and how the state’s recent investments have affected service access and affordability.