NC
North Carolina Senate Bill S647

North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S647 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 647
3+S D
4+SENATE BILL DRS35235-LMfa-98A
5+
56
67
78 Short Title: The Child Promise Act. (Public)
89 Sponsors: Senators Garrett, Everitt, and Salvador (Primary Sponsors).
9-Referred to: Rules and Operations of the Senate
10-March 26, 2025
11-*S647 -v-1*
10+Referred to:
11+
12+*DRS35235 -LMfa-98A*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO FULFILL NORTH CAROLINA 'S PROMISE TO ITS CHILDREN THROUGH 2
1415 COMPREHENSIVE INVESTMENT IN EARLY CHILDHOOD EDUCATION AND 3
1516 CHILDCARE INFRASTRUCTURE, TO ENSURE THAT EVERY CHILD HAS ACCESS 4
1617 TO QUALITY EARLY LEARNING OPPORTUNITIES REGARDLESS OF 5
1718 GEOGRAPHY OR FAMILY INCOME, TO STRENGTHEN THE EARLY CHILDHOOD 6
1819 WORKFORCE, AND TO SUPPORT WORKING FAMILIES ACROSS THE STATE. 7
1920 Whereas, the General Assembly hereby finds that investing in high-quality early 8
2021 childhood education and childcare is essential to fulfilling our State's promise to the next 9
2122 generation of North Carolinians; and 10
2223 Whereas, this act establishes a framework to ensure every child has the opportunity 11
2324 to reach their full potential through accessible, affordable, and high-quality early learning 12
2425 experiences; Now, therefore, 13
2526 The General Assembly of North Carolina enacts: 14
2627 SECTION 1.(a) NC Pre-K Expansion. – There is appropriated from the General 15
2728 Fund to the Department of Health and Human Services, Division of Child Development and 16
2829 Early Education, the sum of ninety million two hundred fifty thousand dollars ($90,250,000) in 17
2930 recurring funds for the 2025-2027 fiscal biennium to continue implementing the prekindergarten 18
3031 program (NC Pre-K). These funds shall be used to increase the number of slots available in the 19
3132 program to 10,000 over the next three years as follows: 3,000 in year one; 3,500 in year two; and 20
3233 3,500 in year three. The NC Pre-K program shall serve children who are 4 years of age on or 21
3334 before August 31 of the program year. In determining eligibility, the Division shall establish 22
3435 income eligibility requirements for the program at or below three hundred percent (300%) of the 23
3536 federal poverty level. All sites established under this section shall achieve and maintain a 4- or 24
3637 5-star rating. The Division may use up to three percent (3%) of these funds each fiscal year of 25
3738 the fiscal biennium for administrative expenses associated with implementing the provisions of 26
3839 this section. 27
3940 SECTION 1.(b) There is appropriated from the Economic Development Reserve 28
4041 Fund in the Department of Commerce and available ARPA funds to the Division of Child 29
4142 Development and Early Education (DCDEE) the sum of six million eight hundred thousand 30
4243 dollars ($6,800,000) in recurring funds for each year of the 2025-2027 fiscal biennium to 31
4344 administer a grant program for childcare facilities, new or existing, in census tracts where the 32
4445 ratio of children under 5 to licensed child care providers exceeds 3:1. Childcare facilities with 33
4546 20-49 children are eligible to receive a grant of up to one hundred fifty thousand dollars 34
4647 ($150,000); 50-74 up to three hundred thousand dollars ($300,000); 75 or more up to five 35
47-hundred thousand dollars ($500,000); and family childcare homes up to fifty thousand dollars 36 General Assembly Of North Carolina Session 2025
48-Page 2 Senate Bill 647-First Edition
48+hundred thousand dollars ($500,000); and family childcare homes up to fifty thousand dollars 36
49+FILED SENATE
50+Mar 25, 2025
51+S.B. 647
52+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
53+Page 2 DRS35235-LMfa-98A
4954 ($50,000). Grant recipients shall provide a fifteen percent (15%) match and shall commit to 1
5055 provide the services for at least five years. Of the funds appropriated in this act, the sum of three 2
5156 hundred fifty thousand dollars ($350,000) in each fiscal year of the 2025-2027 fiscal biennium 3
5257 shall be used to employ one full-time program manager and two full-time specialists and the sum 4
5358 of two hundred fifty thousand dollars ($250,000) may be used for technical assistance. DCDEE 5
5459 shall consult with the Department of Commerce in administering the grant program. 6
5560 SECTION 1.(c) The Division of Child Development and Early Education shall 7
5661 coordinate with other appropriate divisions in the Department of Health and Human Services to 8
5762 develop modernized inspections standards for childcare centers. Inspections shall be conducted 9
5863 on a biannual basis for 4- and 5-star childcare centers and an electronic checklist system shall be 10
5964 made available to providers. Inspection standards shall include reasonable space requirements 11
6065 for both indoor and outdoor and allow for expedited review for expansions by providers with 12
6166 three or more years in good standing. DCDEE shall implement the modernized standards required 13
6267 by this section over a period of eighteen months. DCDEE shall use funds available to it to 14
6368 implement the provisions of this subsection. 15
6469 SECTION 1.(d) There is appropriated from the General Fund to the Division of 16
6570 Child Development and Early Education (DCDEE) the sum of nine million five hundred 17
6671 sixty-two thousand five hundred dollars ($9,562,500) in recurring funds and from the North 18
6772 Carolina Education Lottery Fund the sum of three million one hundred eighty-seven thousand 19
6873 five hundred dollars ($3,187,500) for the 2025-2027 fiscal biennium to administer a grant 20
6974 program for after school programs in public schools where more than fifty percent (50%) of the 21
7075 students receive free or reduced lunch. After school programs funded under this section shall 22
7176 operate at a minimum of three hours a day five days a week, and shall provide academic support 23
7277 and transportation home from the site. Students participating may be charged a fee, but it shall 24
7378 be based on family income. DCDEE shall work in conjunction with the Department of Public 25
7479 Instruction to establish the administrative guidelines for the grant program and in reporting on 26
7580 attendance and improvements in academic outcomes. The report required by this section shall be 27
7681 made to the Department of Health and Human Services, Department of Public Instruction, the 28
7782 Joint Legislative Oversight Committee on Health and Human Services, the Joint Legislative 29
7883 Oversight Committee on Education, and the Fiscal Research Division. Of the funds appropriated 30
7984 in this section, the sum of four hundred thousand dollars ($400,000) in each fiscal year of the 31
8085 2025-2027 fiscal biennium shall be used to employ three full-time program coordinators and one 32
8186 full-time director for the program. 33
8287 SECTION 2.(a) The maximum gross annual income for initial eligibility, adjusted 34
8388 annually, for subsidized child care services shall be determined based on a percentage of the 35
8489 federal poverty level as follows: 36
8590 AGE INCOME PERCENTAGE LEVEL 37
8691 0 – 5 300% 38
8792 6 – 12 133% 39
8893 Fees for families who are required to share in the cost of care are established based 40
8994 on seven percent (7%) of gross family income. Priority populations under this section are foster 41
9095 children, children with disabilities, and homeless children. 42
9196 SECTION 2.(b) The Division of Child Development and Early Education shall use 43
9297 available funds from the Child Care and Development Fund to implement the following scale for 44
9398 determining childcare subsidy eligibility for the 2026-2027 fiscal year: 45
9499 (1) 100-200% FPL – standard subsidy (7% family contribution) 46
95100 (2) 201-220% FPL – 90% of standard subsidy (9% family contribution) 47
96101 (3) 221-240% FPL – 80% of standard subsidy (11% family contribution) 48
97102 (4) 241-260% FPL – 70% of standard subsidy (13% family contribution) 49
98103 (5) 261-280% FPL – 60% of standard subsidy (15% family contribution) 50
99104 (6) 281-300% FPL – 50% of standard subsidy (17% family contribution) 51 General Assembly Of North Carolina Session 2025
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101106 SECTION 2.(c) For each year of the 2025-2027 fiscal biennium, a taxpayer with 1
102107 children under six years of age and an income between 300-400% of the federal poverty level is 2
103108 allowed a deduction of $1,500 for each qualifying child. For a child with disabilities, the 3
104109 deduction shall be increased by $500; for an infant under twelve months, by $500; for a child in 4
105110 a childcare desert, by $250. 5
106111 SECTION 2.(d) There is appropriated from the General Fund to the Department of 6
107112 Health and Human Services the sum of twenty-two million nine hundred thousand dollars 7
108113 ($22,900,000) in nonrecurring funds for the 2025-2027 fiscal biennium to provide funds to 8
109114 on-site childcare providers to construct new and renovate existing childcare facilities and to 9
110115 provide childcare subsidies to employees of the providers. These funds shall be available only to 10
111116 providers with 10 or more employees. 11
112117 SECTION 3.(a) There is appropriated from the General Fund and the Child Care 12
113118 and Development Fund to the Department of Health and Human Services, Division of Child 13
114119 Development and Early Education, the sum of nine hundred fifty thousand dollars ($950,000) in 14
115120 recurring funds for each fiscal year of the 2025-2027 fiscal biennium to enhance the 15
116121 compensation paid to educators in licensed childcare facilities. The supplement shall be provided 16
117122 to educators who work a minimum of 30 hours each week and shall be allocated as follow: (i) 17
118123 $2,000 annually for CDA credentials; $3,500 annually for an associate's degree; $5,000 annually 18
119124 for a bachelor's degree; and $6,500 annually for a master's degree. The supplement shall be paid 19
120125 on a biweekly basis. An additional supplement shall be paid for infant-toddler specialization in 20
121126 the amount of $1,000 annually; bilingual certification $1,000 annually; and rural location $1,500 21
122127 annually. 22
123128 SECTION 3.(b) The Department of Health and Human Services, Division of Child 23
124129 Development and Early Education, shall implement 5-star rating system reforms by reducing 24
125130 documentation required to be submitted on a biannual basis; incorporate classroom assessment 25
126131 tools, such as CLASS and ERS; streamline staff qualification verifications; and increase subsidy 26
127132 reimbursement differentials. 27
128133 SECTION 3.(c) There is appropriated from the General Fund and the Child Care 28
129134 and Development Fund to the Department of Health and Human Services, Division of Child 29
130135 Development and Early Education, the sum of one million eight hundred thousand dollars 30
131136 ($1,800,000) in nonrecurring funds for the 2025-2026 fiscal year to administer a mentorship 31
132137 program for childcare providers seeking a star-level increase. Mentors shall have at least five or 32
133138 more years' experience working in a 4- or 5-star childcare facility and shall hold at a minimum a 33
134139 bachelor's degree. 34
135140 SECTION 4.(a) There is appropriated from the General Fund and the Child Care 35
136141 and Development Fund to the Department of Health and Human Services, Division of Child 36
137142 Development and Early Education, the sum of two million eight hundred thousand dollars 37
138143 ($2,800,000) in nonrecurring funds for each fiscal year of the 2025-2027 fiscal biennium to 38
139144 provide retention bonuses to full-time childcare facility employees in licensed facilities. An 39
140145 employee with two years of service is eligible for a bonus of $1,000 each year; five years of 40
141146 service $2,500 each year; 10 years of service $5,000 each year; 15 years of service $7,000 each 41
142147 year; 20 years of service $10,000 each year. 42
143148 SECTION 4.(b) There is appropriated from the General Fund and the Child Care 43
144149 and Development Fund to the Department of Health and Human Services, Division of Child 44
145150 Development and Early Education, the sum of two million eight hundred thousand dollars 45
146151 ($2,800,000) in nonrecurring funds for each fiscal year of the 2025-2027 fiscal biennium to 46
147152 administer a professional development program for childcare workers. The program shall include 47
148153 providing career advise to childcare workers, professional development programs, leadership 48
149154 training for directors, and an online tracking and verification system. 49
150155 SECTION 4.(c) There is appropriated from the General Fund and the Child Care 50
151156 and Development Fund to the Department of Health and Human Services, Division of Child 51 General Assembly Of North Carolina Session 2025
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153158 Development and Early Education, the sum of nine million dollars ($9,000,000) in recurring 1
154159 funds for each fiscal year of the 2025-2027 fiscal biennium to expand T.E.A.C.H. scholarships. 2
155160 The amount of the scholarships shall be as follows: for CDA, 80% of costs up to $3,000; 3
156161 associate's degree, 80% of costs up to $4,500; and bachelor's degree, 80% of costs up to $6,000. 4
157162 Scholarship recipients shall commit to continued employment in a childcare facility for at least 5
158163 one year after completing their degree. 6
159164 SECTION 4.(d) The Department of Health and Human Services, Division of Child 7
160165 Development and Early Education, shall develop and administer an apprenticeship program for 8
161166 individuals desiring to work in the childcare industry. The program shall provide for at least 9
162167 2,000 hours on hand-on experience in a childcare facility, at least 144 hours of technical 10
163168 instruction on childcare; a starting wage of at least $13 per hour; and the apprenticeship shall last 11
164169 between 12-18 months. This program shall be funded by using federal apprenticeship funds, State 12
165170 workforce development funds, and General Fund monies. 13
166171 SECTION 5.(a) There is appropriated from the General Fund to the Department of 14
167172 Health and Human Services, Division of Child Development and Early Education, the sum of 15
168173 five million dollars ($5,000,000) in recurring funds for each fiscal year of the 2025-2027 fiscal 16
169174 biennium to enter into public-private partnerships with childcare facility owners to construct and 17
170175 renovate childcare facilities, purchase equipment and materials, provide professional 18
171176 development initiatives, and provide quality enhancement projects. A facility owner shall 19
172177 contribute a minimum of $25,000 for each project and the State a maximum of $500,000 for each 20
173178 project. 21
174179 SECTION 5.(b) The Department of Health and Human Services, Division of Child 22
175180 Development and Early Education, in collaboration with the Department of Public Instruction 23
176181 shall administer a grant program to expand school-based care facilities. Eligible projects include 24
177182 elementary school classroom conversions, installing modular units on school property, and 25
178183 creating shared service arrangements with existing service providers. 26
179184 SECTION 5.(c) Using funds from the Child Care and Development Fund and funds 27
180185 appropriated from the General Fund for this purpose, the Department of Health and Human 28
181186 Services, Division of Child Development and Early Education, shall establish 12 regional 29
182187 hub-and-spoke support networks for family childcare. The networks shall share administrative 30
183188 services such as billing and enrollment, substitute pool management, bulk purchasing, 31
184189 professional development, business coaching and support, and quality improvement assistance. 32
185190 This program shall be funded by using available funds from Child Care and Development Fund 33
186191 and funds from the General Fund appropriated for this purpose. 34
187192 SECTION 5.(d) The Department of Health and Human Services, Division of Child 35
188193 Development and Early Education, shall develop and administer a universal Pre-K pilot program. 36
189194 The pilot program shall be conducted in 5 counties selected by the Division as long as they meet 37
190195 the following: one urban with a population of less than 500,000; two suburban with a population 38
191196 of 100,000 or more but less than 500,000; and two rural counties with a population of less than 39
192197 100,000. The pilot program shall provide for universal eligibility of all 4 years olds in the State; 40
193198 a mixed delivery system of public schools, Head Start, and private childcare centers; a full day 41
194199 of 6 hours or more required; standardized quality requirements across setting; and a common 42
195200 enrollment system. The pilot program shall be funded with funds from the General Funds with a 43
196201 match of fifteen percent (15%) provided by the counties in which the pilot program will be 44
197202 conducted. 45
198203 SECTION 6.(a) The Department of Health and Human Services, Division of Child 46
199204 Development and Early Education, shall set aside twenty percent (20%) of the additional subsidy 47
200205 dollars provided in this act to be given to parents who have infants and toddlers in a childcare 48
201206 facility. Funds shall also be used to fund one family engagement navigator in each county to 49
202207 assist with enrollment and to provide for a comprehensive database of all ECE professionals. 50
203208 This program shall be funded from CCDF funds and the General Fund. 51 General Assembly Of North Carolina Session 2025
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205210 SECTION 6.(b) The Department of Health and Human Services, Division of Child 1
206211 Development and Early Education, shall implement a program to assist businesses providing 2
207212 childcare. The program shall include (i) fast tracking licensure with a 14-day review for employer 3
208213 sponsored centers; tax credits of at least $1,000 per employee for providing flexible work hours 4
209214 (at least 20% of the workforce must participate); and regional childcare coordinators. 5
210215 SECTION 7. This act becomes effective July 1, 2025. 6