Senate finance panel approves one‑year TANF fix to restore child‑care assistance

Senate Bill 19‑21, sponsored in committee by Senator Massey, was amended and advanced on April 20, 2026, to use unobligated TANF rainy‑day reserve funds to temporarily replace a federal reduction in funding for the Smart Steps Child Care Payment Assistance Program for one year.

Massey told the committee the amendment directs the department to use unobligated rainy‑day funds so redirecting TANF dollars to child care would not force cuts to other TANF‑funded programs. "Basically, it's a one‑year solution which buys us time until the new administration and General Assembly determine what steps are best for a more sustainable solution," he said.

Members asked how the proposal would interact with existing reserve requirements and whether the rainy‑day balance would require restoring funds in a future budget. Senator Hensley asked whether the amendment "funds the bill or is there funds" and Massey answered that the amendment would use existing unobligated funds in the TANF rainy‑day reserve to avoid reductions to other programs. Chairman Watson noted the legislature may need to consider additional general‑fund action next year to restore reserves if those funds are used.

Senator Yarbrough raised a related policy point about drivers of the federal funding change and suggested school‑lunch participation rates and other data elements affect child‑care development fund allocations. Massey and others said the measure buys time for broader policy fixes and to re‑examine enrollment metrics.

The committee adopted finance amendment number 17866 and then recommended SB 19‑21 as amended for passage to the committee on the calendar.