Utah likely has millions in unused federal funds that are earmarked specifically to support needy families and promote self-sufficiency. To maximize our collective potential, our state must invest more in Utah’s child care system. It can start with investing the maximum amount possible to support this mostly locally owned and operated critical industry, our families with young children and our employers looking to recruit and retain their workforce.
The Utah Childcare Solutions and Workplace Productivity Plan recommends, among other suggestions, that Utah immediately invest more Temporary Assistance for Needy Families, or TANF, funding to make child care more affordable for Utah’s needy families. Each year, Utah receives TANF allocations from the federal government and has great flexibility in how these funds are spent, so long as they are used in any manner reasonably calculated to accomplish one or more of the TANF purposes. The federal government actually encourages states to direct TANF funds to child care since it serves as “an essential work support to families that helps lift these families out of poverty, expose children to high-quality services during a rapid period of development, and reduce incidences of involvement in the child welfare system.”
TANF provides a significant amount of funding that could improve our children’s development and school readiness while simultaneously increasing families’ self-sufficiency and reducing Utah’s labor shortages — without tax hikes. The money is already there! Despite this incredible opportunity, Utah has allowed the amount of unobligated TANF funds to continue to increase at a time when Utah’s TANF caseload is decreasing.
Meanwhile, many of our local child care providers find it difficult to stay open on razor-thin margins despite providing very low wages for the child care workforce and pricing parents out of the market. With a state unemployment rate of 3.5% and a labor force participation rate of 68.3%, many employers are struggling to recruit and retain qualified employees.
Only 42% of Utah children entered kindergarten with adequate skills in literacy, and many families are unable to secure and afford high-quality child care. It is intolerable to allow unobligated TANF funds to build up over the recommended reserve amount when needy families, struggling child care providers and employers alike could benefit from investing TANF funds now.
According to a Review of TANF Programs and Expenditures dated Jan. 15, 2024, Utah had $117.1 million in unobligated TANF funds. After deducting the recommended reserve (approximately $37.7 million) and reserve commitments over the next three fiscal years ($52.1 million), Utah still had $27.3 million in unobligated TANF funding available. According to the federal Office of Family Assistance, as of Nov. 7, 2024, Utah has over $96 million in unobligated FY23 TANF funding.
It’s time to increase our investment in our youngest Utahns so that parents who want or need to work don’t have to choose between a safe, enriching environment for their children and their paycheck. Please encourage Gov. Spencer Cox and Utah’s elected representatives to direct Utah’s Department of Workforce Services to invest all available TANF base and unobligated reserve funds in high-quality child care now so that our children, working parents, employers and economy can all thrive. As Cox said, “Our state is only as strong as our families.”