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NC S583

NC S583
Lead. Invest. Families/Foster Teen Act (LIFT)


summary

Introduced
03/25/2025
In Committee
03/26/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

AN ACT TO IMPLEMENT THE "LEADING INVESTMENTS IN FAMILIES AND FOSTER TEENS ACT" AND TO IMPLEMENT THE HEALTHY START NC PROGRAM TO REDUCE MATERNAL MORTALITY AND CHILDHOOD POVERTY AND TO OFFSET COSTS BY MODIFYING THE CORPORATE INCOME TAX RATE SO AS TO KEEP THE EFFECTIVE TAX RATE FOR CORPORATE TAXPAYERS MORE CLOSELY ALIGNED WITH THAT WHICH IS REQUIRED OF INDIVIDUAL TAXPAYERS OF THE STATE. Whereas, wealth and income inequality, which have long plagued North Carolina and the country, continue to grow; and Whereas, structural poverty in our State leads to economic inequality, limited access to education, healthcare, and affordable housing, and high rates of incarceration and environmental hazards. These systemic disparities have created cycles of poverty across generations, leading to underemployment, poor health outcomes, and lower educational advancement; and Whereas, a 2025 Bankrate survey found that fifty-nine percent (59%) of Americans don't have enough savings to cover an unexpected $1,000 emergency expense; and Whereas, we can keep more people out of poverty created by expected or unexpected life changes, or emergencies, by providing targeted populations with recurring payments when they need it most; and Whereas, building on the successes and learnings of City of Durham's guaranteed income pilot, Excel, and Durham County's program, DCo Thrives, we can disrupt structural poverty across North Carolina by zeroing in populations that are most susceptible to financial hardship; and Whereas, this act shifts the paradigm from reacting to poverty to preventing poverty; Now, therefore,

AI Summary

This bill establishes the Leading Investments in Families and Foster Teens (LIFT) Program, which will provide monthly $1,000 cash payments to specific vulnerable populations between April 1, 2026, and April 1, 2035, including high school students experiencing homelessness, young adults exiting foster care, expectant or new mothers, and survivors of natural disasters who qualify for FEMA assistance. The program will be administered by the North Carolina Department of Health and Human Services through a dedicated LIFT Fund, and the payments will not be considered taxable income or used to offset any liabilities. Simultaneously, the bill creates the Healthy Start NC Program, which will provide additional financial support to expecting mothers, offering a one-time $1,500 payment during pregnancy and up to $500 monthly for the first year after giving birth, funded through a combination of Temporary Assistance for Needy Families (TANF) block grant funds and private philanthropic donations. To help fund these programs, the bill modifies the corporate income tax rate, setting it at a fixed 2.25% for corporations doing business in the state. The overall goal of these initiatives is to prevent poverty, support vulnerable populations, and provide financial stability during critical life stages.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Re-ref Com On Appropriations/Base Budget (on 03/26/2025)

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