North Carolina SB 538: Family Empowerment Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 538

Short Title: Family Empowerment Act. (Public)
Sponsors: Senators Theodros and Murdock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S538-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND CHILD CARE ASSISTANCE, ESTABLISH STATE-LEVEL FAMILY 2
LEAVE INCENTIVES, STRENGTHEN PARENTAL SUPPORT SERVICES, AND 3
PROMOTE WORK-FAMILY BALANCE IN NORTH CAROLINA AND 4
APPROPRIATING FUNDS FOR THOSE PURPOSES. 5
The General Assembly of North Carolina enacts: 6
SECTION 1.(a) Title. – This act shall be known and may be cited as the "Family 7
Empowerment Act." 8
SECTION 1.(b) The following definitions apply in this act: 9
(1) Child Care Assistance Program. – Financial aid for eligible families to cover 10
child care expenses. 11
(2) Family leave incentives. – State-sponsored tax incentives for businesses 12
providing paid parental or caregiving leave. 13
(3) Parental support services. – Parenting education, financial counseling, and 14
home-visiting programs to assist families in achieving economic stability. 15
(4) Flexible work arrangements. – Employer policies that allow telework, 16
alternative schedules, and caregiver-friendly workplace practices. 17
SECTION 1.(c) Findings. – The General Assembly finds that North Carolina 18
families face increasing economic pressures and challenges in balancing work and caregiving 19
responsibilities. Expanding access to child care, parental leave, and family support services will 20
enhance economic security and overall family well-being for the people of this State. 21
SECTION 2. Expanded Child Care Support. – The North Carolina Department of 22
Health and Human Services (DHHS) shall expand the Child Care Subsidy Program by increasing 23
funding and broadening eligibility to families earning up to three hundred percent (300%) of the 24
federal poverty level. Priority shall be given to single-parent households and families in 25
industries with nontraditional work hours. 26
SECTION 3. Reducing Costs for Working Families. – By January 1, 2027, the 27
DHHS, in conjunction with other relevant State agencies, shall develop a tiered copayment 28
structure ensuring families pay no more than seven percent (7%) of their household income on 29
child care. Child care providers receiving State subsidies shall meet quality early childhood 30
education standards to ensure program effectiveness. 31
SECTION 4.(a) Employer Tax Incentives for Paid Family Leave. – Pursuant to 32
Section 10 of this act, the North Carolina Department of Revenue shall establish the tax credit 33
program for businesses offering at least four weeks of paid parental leave or paid family 34
caregiving leave. Eligible businesses shall receive a credit of up to two thousand five hundred 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 538-First Edition
dollars ($2,500) per participating employee, capped at two hundred fifty thousand dollars 1
($250,000) per year per business. 2
SECTION 4.(b) Small Business Family Leave Grants. – By January 1, 2027, 3
businesses with fewer than 50 employees offering paid family leave shall be eligible to participate 4
in a State-funded grant program to offset costs. Grant applications shall be developed and 5
administered by the Department of Commerce, in conjunction with other relevant State agencies. 6
Funds shall be prioritized for businesses in rural and underserved communities. 7
SECTION 5.(a) Expansion of Home-Visiting Programs. – DHHS shall expand 8
funding for home-visiting programs that provide early childhood education, parenting skills 9
training, and infant health support. Services shall be prioritized for families below two hundred 10
fifty percent (250%) of the federal poverty level and those at risk of child welfare involvement. 11
SECTION 5.(b) Financial Counseling and Family Stability Services. – By January 12
1, 2027, the State shall develop and implement financial literacy workshops and economic 13
empowerment programs to assist parents with budgeting, savings, and access to resources. 14
Partnerships shall be established with community organizations, credit unions, and financial 15
institutions to expand access to free financial counseling. The Department of Commerce shall 16
lead relevant State agencies to develop this program. 17
SECTION 6.(a) Flexible Work Arrangements Encouragement. – By January 1, 18
2027, the North Carolina Department of Labor shall develop guidelines and incentives for 19
businesses adopting flexible work policies such as telework, alternative schedules, and 20
caregiving leave. Employers implementing flexible work policies shall receive State recognition 21
and certification under a new "Family-Friendly Workplace" designation. 22
SECTION 6.(b) State Employee Work-Family Balance Initiative. – State agencies 23
shall adopt model flexible work policies to support work-life balance for State employees. 24
Agencies shall conduct annual s