GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 456
Short Title: Healthy Start NC. (Public)
Sponsors: Senators Chitlik, Murdock, and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 25, 2025
*S456 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO IMPLEMENT THE HEALTHY START NC PROGRAM TO REDUCE 2
MATERNAL MORTALITY A ND CHILDHOOD POVERTY AND TO OFFSET COSTS 3
BY MODIFYING THE COR PORATE INCOME TAX RA TE SO AS TO KEEP THE 4
EFFECTIVE TAX RATE F OR CORPORATE TAXPAYE RS MORE CLOSELY 5
ALIGNED WITH THAT WH ICH IS REQUIRED OF INDIVIDUAL TAXPAYERS OF 6
THE STATE. 7
The General Assembly of North Carolina enacts: 8
SECTION 1.(a) Program. – Of the funds received by the State and appropriated to 9
the Department of Health and Human Services from the Temporary Assistance for Needy 10
Families (TANF) Block Grant, the Department shall allocate to the Division of Social Services 11
(Division) the recurring sum of one hundred sixty-one million six hundred thousand dollars 12
($161,600,000) for each year of the 2025-2027 fiscal biennium to implement the Healthy Start 13
NC Program (Program). In addition, there is appropriated from the General Fund to the 14
Department the recurring sum of one hundred forty-six million three hundred thousand dollars 15
($146,300,000) for each year of the 2025-2027 fiscal biennium to be allocated to the Division of 16
Social Services for implementation of the Program. The purpose of the Program is to provide 17
nonrecurrent, short-term benefits in the form of prenatal and infant cash allowances to meet 18
pre- and post-birth needs of expecting mothers and babies. 19
SECTION 1.(b) Administration. – The Division shall develop detailed guidelines to 20
administer, and accomplish the purposes of, the Program. The Division, in administering the 21
Program, shall do all of the following: 22
(1) Study, and make any amendments necessary to, the TANF State plan, 23
including what was approved in Section 9J.1 of S.L. 2023-134, to implement 24
the Program. Notwithstanding any provision of law to the contrary, the 25
Division may modify the State plan to accomplish the purposes of this act. To 26
the extent the Division identifies State laws modified pursuant to the authority 27
provided in this subsection, the Division shall make recommendations to the 28
General Assembly for legislative changes needed. 29
(2) Define childbirth as a specific crisis situation and episode of need and take 30
other steps required to use TANF funds to provide nonrecurrent, short-term 31
benefits to families who give birth to a child. In so doing, the Division shall 32
follow the guidance from the United States Department of Health and Human 33
Services, Administration of Children and Families Office of Family 34
Assistance, for funding the Program in conformity with this section. 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 456-First Edition
(3) Adopt policies, including a compliant means-based test at the time of birth for 1
Program recipients (such as Medicaid or a percentage of the federal poverty 2
level), to identify needy families that can be supported with TANF Block 3
Grant dollars in a manner that will neither trigger time limits or work 4
requirements nor adversely affect entitlement to other State or federal aid. The 5
Division shall collect and review information relevant to the means-based 6
eligibility determination required by this section. 7
(4) Identify and partner with a nonprofit organization to administer the Program. 8
As a condition of partnering with the nonprofit organization, the Division shall 9
require that the organization (i) deliver programmatic funding to families as a 10
private gift below applicable federal maximums in such a way as to make it 11
non-taxable and protect, to the maximum extent possible, the receipt of other 12
social benefits and (ii) engage in fundraising efforts to spur the receipt of funds 13
donated through private philanthropy to expand the reach of the Program so 14
as to provide programmatic funding to families that do not qualify under 15
subdivision (3) of this subsection. 16
(5) Identify and report annually to the General Assembly on the number of 17
families receiving aid, broken down by those supported using TANF funds 18
and those supported using private funds, the total amount of private funds 19
raised through fundraising efforts, and additional needs or resources that 20
would assist the Division in maximizing private fundraising efforts. 21
SECTION 1.(c) Use. – Awards of programmatic funding shall be subject to all of 22
the following: 23
(1) A one-time award to an expecting mother during pregnancy in the amount of 24
one thousand five hundred dollars ($1,500) for needs determined by the 25
mother, including food, prenatal care, rent, and other needs. 26
(2) A monthly award for the maximum amount of time permitted under federal 27
law to qualify as nonrecurrent, short-term benefits, not to exceed the first year 28
after giving birth to the mother in the amount of five hundred dollars ($500.00) 29
per month for needs of the baby determined by the mother, including formula, 30
diapers, child care, and other needs. 31
(3) Awards utilizing TANF funds shall use, and be limited by, the means-based 32
test provided in subdivision (b)(3) of this section, other applicable federal 33
restrictions, and this section to ensure the funds are used solely to benefit 34
eligible families. 35
(4) Awards utilizing funds raised by the nonprofit organization with which the 36
Division partners pursuant to subdivision (b)(4) of this section shall be used, 37
first, to augment awards for families that qualify for TANF funds under 38
subdivision (3) of this subsection to the maximum amount permitted by this 39
section and, thereafter, to beneficially impact as many other families as 40
possible; provided that, such awards shall not exceed the amounts and 41
purposes permitted in subdivisions (1) and (2) of this subsection. 42
SECTION 2. G.S. 105-130.3 reads as rewritten: 43
"§ 105-130.3. Corporations. 44
A tax is imposed on the State net income of every C Corporation doing business in this State. 45
An S Corporation is not subject to the tax levied in this section. The tax is a percentage equal to 46
two and one-quarter percent (2.25%) of the taxpayer's State net income computed as 47
follows:income. 48
Taxable Years Beginning Tax 49
In 2025 2.25% 50
In 2026 2% 51 General Assembly Of North Carolina Session 2025
Senate Bill 456-First Edition Page 3
In 2028 1% 1
After 2029 0%." 2
SECTION 3. Section 2 of this act is effective for taxable years beginning on or after 3
January 1, 2025. Section 1 of this act becomes effective July 1, 2025. The remainder of this act 4
is effective when it becomes law. 5