Missoula, MT — Childcare remains one of the most pressing challenges for Montana families and businesses, and lawmakers are actively considering options to address the issue. A proposed bill in the Montana Legislature is seeking to create a $150 million endowment fund aimed at improving childcare access across the state.
Senator Laura Smith, a Democrat from Helena, introduced Senate Bill 565, known as the Early Childhood Endowment Fund. The bill proposes a one-time investment of $150 million into the fund, with the interest generated used to make childcare more affordable for families. The funds would help secure childcare workers, provide assistance grants for families, and expand licensed after-school care programs.
“Childcare is one of the biggest challenges facing not only our communities but our businesses right now,” Smith said. “We need to find a solution to ensure that families have access to affordable, quality childcare while also supporting the workforce.”
According to the Montana Department of Labor and Industry, the state’s licensed childcare capacity meets only 44% of the estimated demand, and 59% of counties in Montana are considered childcare deserts, where the supply meets less than a third of the demand.
The proposed endowment fund has garnered both support and opposition. Supporters, including Ethan Kohoutek, a parent and business owner, argue that the lack of available childcare is pushing employees out of the workforce. Kohoutek stated that he has lost valuable workers because they cannot find suitable childcare, leaving them with no choice but to stay home with their children.
“There’s just not good childcare for them, so they are staying home with their child,” Kohoutek explained. “They would love to work, but the reality is they can’t due to the lack of options.”
However, the proposal has faced strong opposition from some lawmakers who believe the state should prioritize other needs, such as education or property tax relief. Senator John Fuller, a Republican from Kalispell, expressed concerns about the allocation of $150 million toward childcare.
“I look at the $150 million endowment, and I think of what we can do for education – putting that money toward education for students or relief of property taxes,” Fuller said. “I feel that this is a bad expenditure of taxpayer dollars.”
Senator Greg Hertz, a Republican from Polson, echoed similar concerns. “While I like the concept of this bill, I’m not going to support it. What I would support is an endowment fund that is funded by gifts and grants, rather than taxpayer dollars,” Hertz stated.
The endowment would be managed by a seven-member board appointed by the governor, consisting of state employees and representatives from early childhood organizations. Smith has pointed to similar childcare trust funds in 16 other states as evidence that such initiatives can be successful.
Another proposal related to childcare is House Bill 924, introduced by Representative Llew Jones, a Republican from Conrad. This bill also seeks to address childcare issues, but it includes additional measures for infrastructure and property tax relief. Smith indicated that she would be happy if either her bill or Jones’s bill is signed into law.
As the legislative session progresses, the debate over how best to address Montana’s childcare crisis continues, with lawmakers weighing the potential long-term benefits of such an investment against concerns over the immediate use of taxpayer dollars.
