North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S456 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 456
	3	+	S D
	4	+	SENATE BILL DRS45252-MCxfa-168
	5	+
5	6
6	7
7	8		Short Title: Healthy Start NC. (Public)
8	9		Sponsors: Senators Chitlik, Murdock, and Salvador (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 25, 2025~~
11		-	~~S456 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45252 -MCxfa -168
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO IMPLEMENT THE HEALTHY START NC PROGRAM TO REDUCE 2
14	15		MATERNAL MORTALITY AND CHILDHOOD POVERTY AND TO OFFSET COSTS 3
15	16		BY MODIFYING THE CORPORATE INCOME TAX RATE SO AS TO KEEP THE 4
16	17		EFFECTIVE TAX RATE FOR CORPORATE TAXPAYERS MORE CLOSELY 5
17	18		ALIGNED WITH THAT WHICH IS REQUIRED OF INDIVIDUAL TAXPAYERS OF 6
18	19		THE STATE. 7
19	20		The General Assembly of North Carolina enacts: 8
20	21		SECTION 1.(a) Program. – Of the funds received by the State and appropriated to 9
21	22		the Department of Health and Human Services from the Temporary Assistance for Needy 10
22	23		Families (TANF) Block Grant, the Department shall allocate to the Division of Social Services 11
23	24		(Division) the recurring sum of one hundred sixty-one million six hundred thousand dollars 12
24	25		($161,600,000) for each year of the 2025-2027 fiscal biennium to implement the Healthy Start 13
25	26		NC Program (Program). In addition, there is appropriated from the General Fund to the 14
26	27		Department the recurring sum of one hundred forty-six million three hundred thousand dollars 15
27	28		($146,300,000) for each year of the 2025-2027 fiscal biennium to be allocated to the Division of 16
28	29		Social Services for implementation of the Program. The purpose of the Program is to provide 17
29	30		nonrecurrent, short-term benefits in the form of prenatal and infant cash allowances to meet 18
30	31		pre- and post-birth needs of expecting mothers and babies. 19
31	32		SECTION 1.(b) Administration. – The Division shall develop detailed guidelines to 20
32	33		administer, and accomplish the purposes of, the Program. The Division, in administering the 21
33	34		Program, shall do all of the following: 22
34	35		(1) Study, and make any amendments necessary to, the TANF State plan, 23
35	36		including what was approved in Section 9J.1 of S.L. 2023-134, to implement 24
36	37		the Program. Notwithstanding any provision of law to the contrary, the 25
37	38		Division may modify the State plan to accomplish the purposes of this act. To 26
38	39		the extent the Division identifies State laws modified pursuant to the authority 27
39	40		provided in this subsection, the Division shall make recommendations to the 28
40	41		General Assembly for legislative changes needed. 29
41	42		(2) Define childbirth as a specific crisis situation and episode of need and take 30
42	43		other steps required to use TANF funds to provide nonrecurrent, short-term 31
43	44		benefits to families who give birth to a child. In so doing, the Division shall 32
44	45		follow the guidance from the United States Department of Health and Human 33
45	46		Services, Administration of Children and Families Office of Family 34
46		-	Assistance, for funding the Program in conformity with this section. 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 456-First Edition
	47	+	Assistance, for funding the Program in conformity with this section. 35
	48	+	FILED SENATE
	49	+	Mar 24, 2025
	50	+	S.B. 456
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45252-MCxfa-168
48	53		(3) Adopt policies, including a compliant means-based test at the time of birth for 1
49	54		Program recipients (such as Medicaid or a percentage of the federal poverty 2
50	55		level), to identify needy families that can be supported with TANF Block 3
51	56		Grant dollars in a manner that will neither trigger time limits or work 4
52	57		requirements nor adversely affect entitlement to other State or federal aid. The 5
53	58		Division shall collect and review information relevant to the means-based 6
54	59		eligibility determination required by this section. 7
55	60		(4) Identify and partner with a nonprofit organization to administer the Program. 8
56	61		As a condition of partnering with the nonprofit organization, the Division shall 9
57	62		require that the organization (i) deliver programmatic funding to families as a 10
58	63		private gift below applicable federal maximums in such a way as to make it 11
59	64		non-taxable and protect, to the maximum extent possible, the receipt of other 12
60	65		social benefits and (ii) engage in fundraising efforts to spur the receipt of funds 13
61	66		donated through private philanthropy to expand the reach of the Program so 14
62	67		as to provide programmatic funding to families that do not qualify under 15
63	68		subdivision (3) of this subsection. 16
64	69		(5) Identify and report annually to the General Assembly on the number of 17
65	70		families receiving aid, broken down by those supported using TANF funds 18
66	71		and those supported using private funds, the total amount of private funds 19
67	72		raised through fundraising efforts, and additional needs or resources that 20
68	73		would assist the Division in maximizing private fundraising efforts. 21
69	74		SECTION 1.(c) Use. – Awards of programmatic funding shall be subject to all of 22
70	75		the following: 23
71	76		(1) A one-time award to an expecting mother during pregnancy in the amount of 24
72	77		one thousand five hundred dollars ($1,500) for needs determined by the 25
73	78		mother, including food, prenatal care, rent, and other needs. 26
74	79		(2) A monthly award for the maximum amount of time permitted under federal 27
75	80		law to qualify as nonrecurrent, short-term benefits, not to exceed the first year 28
76	81		after giving birth to the mother in the amount of five hundred dollars ($500.00) 29
77	82		per month for needs of the baby determined by the mother, including formula, 30
78	83		diapers, child care, and other needs. 31
79	84		(3) Awards utilizing TANF funds shall use, and be limited by, the means-based 32
80	85		test provided in subdivision (b)(3) of this section, other applicable federal 33
81	86		restrictions, and this section to ensure the funds are used solely to benefit 34
82	87		eligible families. 35
83	88		(4) Awards utilizing funds raised by the nonprofit organization with which the 36
84	89		Division partners pursuant to subdivision (b)(4) of this section shall be used, 37
85	90		first, to augment awards for families that qualify for TANF funds under 38
86	91		subdivision (3) of this subsection to the maximum amount permitted by this 39
87	92		section and, thereafter, to beneficially impact as many other families as 40
88	93		possible; provided that, such awards shall not exceed the amounts and 41
89	94		purposes permitted in subdivisions (1) and (2) of this subsection. 42
90	95		SECTION 2. G.S. 105-130.3 reads as rewritten: 43
91	96		"§ 105-130.3. Corporations. 44
92	97		A tax is imposed on the State net income of every C Corporation doing business in this State. 45
93	98		An S Corporation is not subject to the tax levied in this section. The tax is a percentage equal to 46
94	99		two and one-quarter percent (2.25%) of the taxpayer's State net income computed as 47
95	100		follows:income. 48
96	101		Taxable Years Beginning Tax 49
97	102		In 2025 2.25% 50
98	103		In 2026 2% 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 456-First Edition~~ Page 3
	104	+	DRS45252-MCxfa-168 Page 3
100	105		In 2028 1% 1
101	106		After 2029 0%." 2
102	107		SECTION 3. Section 2 of this act is effective for taxable years beginning on or after 3
103	108		January 1, 2025. Section 1 of this act becomes effective July 1, 2025. The remainder of this act 4
104	109		is effective when it becomes law. 5