Bill > S594

This bill aims to improve child care affordability and accessibility by increasing child care subsidy rates across North Carolina. Starting October 1, 2025, the Department of Health and Human Services will raise child care subsidy market rates to the 75th percentile as recommended by the 2023 Child Care Market Rate Study for children in three-, four-, and five-star-rated child care centers and homes. The bill establishes a standard statewide payment rate for counties with rates below the state average, ensuring that even counties with fewer children can maintain adequate child care services. For counties with fewer than 50 children in each age group, an exception allows them to use their local market rate if the statewide rate would restrict child care purchasing for low-income families. To support these changes, the bill appropriates $110 million in recurring funds from the General Fund for the 2025-2027 fiscal biennium, which will help implement the market rate increases and establish a baseline for child care subsidy rates. The act will become effective on July 1, 2025, providing time for implementation and preparation by child care providers and the state agency.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S594