DEED told the House Finance Education Subcommittee that the governor’s fiscal‑26 budget includes $120,000 in unrestricted general funds to start a three‑year grant program to reimburse travel costs for sponsors who monitor remote child care homes participating in the USDA Child and Adult Care Food Program (CACFP).

Department staff and Director Heather Heineken said sponsorship rates have declined in remote areas because the high cost of travel has discouraged sponsors and monitors, leaving some rural childcare homes unable to qualify for USDA reimbursements. The proposed grant would reimburse travel costs for sponsors that serve remote homes; DEED said grantees must sponsor a home within three hours of another home they sponsor to be eligible.

Representative Rebecca Story described a Haines provider that lost federal childcare food payments because monitoring travel costs and overnight travel made certification unsustainable for third‑party monitors based in Anchorage. Story and other committee members said the proposed grant targets a clear rural equity problem.

DEED said it would provide more implementation details and named Gavin Murphy and the food service program office as internal contacts for follow‑up.

Why this matters: CACFP reimbursements help cover nutritious meals for young children in licensed childcare homes. Reimbursing sponsor travel costs could prevent rural providers from losing USDA support and improve nutrition access in remote communities.