thread is sharing an important update on where things stand in this year’s State legislative session—and what’s happening with the child care priorities we’ve been tracking and supporting alongside you over the past several months.
In short, it’s been a roller coaster.
Right now, child care funding in Alaska is uncertain—and at worst, could face significant cuts. Even the historic investments we celebrated last year are now at risk due to a tough state budget environment.
What does this mean? It means keeping child care funding secure in the state budget will take all of us: parents, early educators, community leaders, businesses, and most importantly, more champions inside the legislature. Even then, there are no guarantees.
Over the past month, thread has held more than 100 meetings with legislators to advocate for child care priorities. Our message has been clear: anything less than maintaining current levels of funding will fail Alaska’s families, let down essential early educators, and slow our economic growth. But we cannot do this alone—we need your voice, loud and clear, right now.
Here are the latest updates—and what you can do to help:
$7.725 Million in Child Care Grants – Being Considered By the Senate
Currently, $7.725 million in new child care grants was just passed by the State House! Two amendments that would have cut child care funding also failed. That’s encouraging to see so much support for child care and early education on the House side.
Meanwhile, the State Senate is now considering the operating budget. Senate leaders have indicated they will not consider new additions to the budget without new revenue. That means without a change, there’s a serious risk that no new funding—child care or otherwise—moves forward.
What You Can Do:
Take a moment to reach out to call your Senator. Thank them for their support of child care funding from last year and remind them that it remains a priority for your family, your work, and your community this year.
Click here to contact your local Senator and share that the child care grants are needed.
Child Care Legislation: Senate Bills 95 & 96
You may remember last year’s comprehensive child care bill (House Bill 89), which passed. However, due to a legal challenge about how it was packaged with other policies, the legislature must re-pass the child care provisions this year.
The new bills—Senate Bill 95 and Senate Bill 96—would:
- SB 95: Expand eligibility for Child Care Assistance, making child care more affordable for thousands of Alaska families. It would recognize the true cost of care for providers.
- SB 96: Increase tax credits for businesses that invest in child care for their employees.
These bills represent thread’s top policy priority this session. Both bills have passed their first committees and are now being heard in Senate Finance Committee. The first hearing is April 25, 2025, so your comments are key!
While the Governor already included $6.1 million for these initiatives in his base budget this year, the policies are now needed to support this funding.
What You Can Do:
Contact Members of Senate Finance Committee and Senate leadership and urge them to prioritize and pass SB 95 and SB 96. Ask them to fast track these bills while there is still time left in the legislative session. These policies are vital to making child care more accessible and sustainable in Alaska.
Click here to urge members of Senate Finance Committee to prioritize SB 95 and SB 96.
Prompt Payment Legislation: HB 133 & SB 129
Prompt payment bills—House Bill 133 and Senate Bill 129—are gaining traction, with support from thread, nonprofit organizations, and municipalities across Alaska. These bills would require the State of Alaska to pay its bills within 30 days, aligning with expectations already in place for other sectors.
Why it matters: Child care programs across the state have faced weeks-long delays in receiving reimbursements. These delays cause significant financial strain on programs already operating on tight margins.
These bills would:
- Establish a 30-day payment standard for state reimbursements
- Add interest penalties for payments delayed beyond that deadline
Many other states already have similar laws. This would simply bring nonprofits, tribal organizations, municipalities, and child care programs up to the same standard as other contractors.
While the Department of Health has made some improvements, delays still occur. Setting a clear statewide standard would help ensure greater consistency and predictability.
What You Can Do:
- Support SB 129, currently in the Senate Community and Regional Affairs Committee
- Learn more from our partners at The Foraker Group
- Click here to share your story about how delayed payments have impacted your program or family
In Summary
With less than a month remaining, the legislative session has reached a critical point. Funding for child care and progress on key policy reforms are on the line.
Every voice matters. Lawmakers need to hear that child care is not optional—it’s essential to Alaska’s future. Thank you for continuing to show up and speak out for Alaska’s children, families, and early childhood educators. Let’s keep pushing forward, together.