GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH10372-LUa-95A
Short Title: Review Effectiveness & Delivery of Child Care. (Public)
Sponsors: Representative Willis.
Referred to:
*DRH10372 -LUa-95A*
A BILL TO BE ENTITLED 1
AN ACT TO DIRECT THE DIVISION OF CHILD DEVELOPMENT AND EARLY 2
EDUCATION WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES 3
TO STUDY AND REPORT ON THE EFFECTIVENESS AND DELIVERY OF VARIOUS 4
CHILD CARE INITIATIVES; TO APPROPRIATE FUNDS TO ESTABLISH A PILOT 5
PROGRAM THAT WOULD ALLOW A CHILD CARE TEACHER EMPLOYED FULL 6
TIME BY A LICENSED CHILD CARE PROGRAM IN THE STATE TO BE DEEMED 7
AUTOMATICALLY ELIGIBLE FOR CHILD CARE SUBSIDY FOR THE TEACHER 'S 8
PRESCHOOL-AGE CHILDREN; AND TO PROVIDE CERTAIN DIRECTIVES 9
REGARDING CHILD CARE IN THIS STATE . 10
The General Assembly of North Carolina enacts: 11
SECTION 1.(a) The Department of Health and Human Services, Division of Child 12
Development and Early Education (Division), shall study the effectiveness and delivery model 13
of the North Carolina Prekindergarten (NC Pre-K) program and the North Carolina Partnership 14
for Children (Smart Start) program, as well as review various other child care initiatives as 15
provided in this section. In conducting the study, the Division shall do the following: 16
(1) Review the complete allocation of funds for both NC Pre-K and Smart Start. 17
(2) Review other early childhood models to determine whether those other 18
models could better maximize funds available for child care needs in this State 19
and maximize the number of children placed in licensed child care. 20
(3) Review the current rules and guidelines regarding the quality rating 21
improvement system (QRIS) to determine what, if any, temporary changes 22
need to be considered that may provide relief to child care providers and those 23
providers' ability to offer child care for as many children as permitted by law. 24
SECTION 1.(b) The Division of Child Development and Early Education (Division) 25
shall conduct a detailed analysis of the North Carolina Prekindergarten (NC Pre-K) program to 26
ensure every funded slot can be filled. In conducting the analysis required by this section, if the 27
Division determines there are open NC Pre-K slots for any reason, the Division shall reassign 28
those slots for the remainder of the school year to another county that may have a waitlist for the 29
NC Pre-K program. If a county has available slots but no additional teachers or classrooms to 30
open, the Division may choose to increase the maximum class size to 22 students. 31
SECTION 1.(c) The Division of Child Development and Early Education (Division) 32
shall study the current child care subsidy market rates and determine a recommended minimum 33
amount to establish a reimbursement rate floor for subsidized child care. 34
SECTION 1.(d) The Division of Child Development and Early Education (Division) 35
shall report its findings and recommendations, including any legislative proposals, regarding the 36
H.B. 800
Apr 7, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH10372-LUa-95A
studies and analysis required by this section to the Joint Legislative Oversight Committee on 1
Health and Human Services and the Fiscal Research Division on or before April 30, 2026. 2
SECTION 2.(a) There is appropriated from the General Fund to the Department of 3
Health and Human Services, Division of Child Development and Early Education (Division), the 4
sum of ten million dollars ($10,000,000) in nonrecurring funds for each year of the 2025-2027 5
fiscal biennium to establish a pilot program that provides automatic eligibility for child care 6
subsidy for the preschool-age children, 8 weeks to 5 years of age, of all child care teachers 7
employed full time by a licensed child care program in this State. A child care teacher deemed 8
automatically eligible for subsidy pursuant to this section shall have completed, be in the process 9
of completing, or enroll at the first available semester in an Introduction to Early Childhood class 10
at any local community college in this State. A child care teacher who does not already possess 11
an Early Childhood Education Infant/Toddler Certificate or Child Development Certificate shall 12
commit to remaining in college and completing either certificate within 18 months. Any 13
coursework taken pursuant to this section shall be paid for by the T.E.A.C.H. Early Childhood 14
North Carolina Scholarship Program, with no cost to the teacher. For purposes of this section, 15
"full time" means a minimum of 35 hours per week. 16
SECTION 2.(b) The Division of Child Development and Early Education (Division) 17
shall implement the pilot program within 120 days from the effective date of this section. The 18
Division shall select counties from across the State to participate in the pilot program. In selecting 19
counties, the Division shall focus on counties with the highest percentage of child care capacity 20
lost during the past 10 years. In determining the applicable rate for a child care teacher eligible 21
for subsidy under this section, the Division shall use the rate available in the county where the 22
teacher resides. Child care centers shall accept the current market subsidy rates and may not 23
charge copayment fees or any other fees in addition to the subsidy amount provided pursuant to 24
this section. County agencies shall use existing child care subsidy funding first before applying 25
for additional funding. 26
SECTION 2.(c) The Division of Child Development and Early Education (Division) 27
shall submit an initial report to the Joint Legislative Oversight Committee on Health and Human 28
Services and the Fiscal Research Division of the General Assembly by March 31, 2026, of the 29
number of child care teachers participating in the pilot program, by county. Thereafter, the 30
Division shall submit a quarterly report on the number of participants in the program, with a 31
detailed report by December 31 of each year the pilot program is in effect. The quarterly and 32
annual detailed reports shall include, at a minimum, the following: 33
(1) The number of teachers in the pilot program who were already teaching and 34
became automatically eligible for child care subsidy on the effective date of 35
this act. 36
(2) The number of new teachers added to the pilot program, by county, on a 37
monthly basis. 38
(3) The retention of every teacher in the pilot program. 39
SECTION 2.(d) This section becomes effective July 1, 2025. 40
SECTION 3. Funds provided to the Division of Child Development and Early 41
Education for the 2024-2025 fiscal year for the Pilot Program to Increase the Provision of 42
In-Home Child Care in accordance with Section 9D.8 of S.L. 2023-134 and the Tri-Share Child 43
Care Pilot Program in accordance with Section 9D.9 of S.L. 2023-134 shall be subject to review 44
and approval by the General Assembly before those funds may be further expended for either of 45
those pilot programs. 46
SECTION 4. Any county program that provides supplemental, local funds to 47
families for subsidized child care shall allow those families to select a four- or five-star rated 48
child care center of their choice rather than to be assigned a specific school. 49
SECTION 5. The Department of Health and Human Services shall collaborate with 50
the Department of Insurance to review and make suggestions to the General Assembly on how 51 General Assembly Of North Carolina Session 2025
DRH10372-LUa-95A Page 3
to lower the costs of all of the various types of insurance required for the provision of child care 1
in this State. 2
SECTION 6. Except as otherwise provided, this act is effective when it becomes 3
law. 4