Halflings can reproduce, but only with halflings that share their egg group, so no humans. Being part animal, their pregnancies only take 6 months on average.
Halfling children take around 18 years to sexually mature / this is the youngest age that they usually have children themselves.
Because the halflings are a new, unstable breed, the chances that the children grow to adulthood (18 years) are less than humans. The chances lessen with each subsequent child:
1st child: 80% survival rate
2nd child: 60% survival rate
3rd child: 40% survival rate
And so on and so forth.
Halfling children take their species from their mother, like the in-game breeding mechanics. They can inherit egg moves from the father.