Bill > S412

This bill addresses two key initiatives related to childcare in North Carolina. First, starting July 1, 2025, the Department of Health and Human Services will increase child care subsidy market rates to the 75th percentile as recommended by the 2023 Child Care Market Rate Study, with an appropriation of $123.5 million in recurring funds for the 2025-2027 fiscal biennium. The rate increases include an additional 10% for rural counties (defined as counties with 250 or fewer people per square mile) and another 10% for infant and toddler care (birth to 3 years old). Second, the bill establishes an $8 million pilot program to build child care capacity in areas impacted by Hurricane Helene, allocating funds to five regional councils of governments. These councils will work with vendors experienced in supporting early child care providers to recruit and coach new child care providers, with the goal of increasing child care programs and ensuring their sustainability through a two-year mentorship program. The participating councils must submit progress reports every six months, detailing the number of child care programs created, types of programs, new child care slots, and associated costs. The bill becomes effective on July 1, 2025.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S412