North Carolina SB 1015: Child Care Omnibus.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1015

Short Title: Child Care Omnibus. (Public)
Sponsors: Senators Chitlik and Chaudhuri (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1015-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE VARIOUS CHANGES UNDER THE LAWS PERTAINING TO CHILD 2
CARE AND TO APPROPRIATE FUNDS FOR THOSE PURPOSES. 3
The General Assembly of North Carolina enacts: 4
5
PART I. INCREASE CHILD CARE SUBSIDY RATES/ESTABLISH RATE FLOOR 6
SECTION 1.1. Beginning October 1, 2026, the Department of Health and Human 7
Services, Division of Child Development and Early Education, shall increase the child care 8
subsidy market rates to the seventy-fifth percentile as recommended by the 2023 Child Care 9
Market Rate Study for children in three-, four-, and five-star-rated child care centers and homes. 10
SECTION 1.2. Beginning October 1, 2026, provisions of payment rates for child 11
care providers in counties that have a county rate below the State rate for center-based and 12
home-based care are as follows: 13
(1) Except as applicable in subdivision (2) of this section, payment rates shall be 14
set at the seventy-fifth percentile statewide market rate as recommended by 15
the 2023 Child Care Market Rate Study for children birth through 5 years of 16
age for licensed child care centers and homes. 17
(2) If it can be demonstrated that the application of the statewide rate to a county 18
with fewer than 50 children in each age group is lower than the county market 19
rate and would inhibit the ability of the county to purchase child care for 20
low-income children, then the county market rate may be applied. 21
SECTION 1.3. There is appropriated from the General Fund to the Department of 22
Health and Human Services, Division of Child Development and Early Education, the sum of 23
one hundred ten million dollars ($110,000,000) in recurring funds beginning in the 2026-2027 24
fiscal year to implement the market rate increases and to establish a floor for child care subsidy 25
rates as set forth in Sections 1.1 and 1.2 of this Part. 26
27
PART II. REINSTITUTE FUNDING FOR CHILD CARE STABILIZATION GRANTS 28
SECTION 2.1. There is appropriated from the General Fund to the Department of 29
Health and Human Services, Division of Child Development and Early Education (Division), the 30
sum of fifty million dollars ($50,000,000) in nonrecurring funds for the 2026-2027 fiscal year to 31
reinstitute the compensation grants portion of the child care stabilization grants. 32
SECTION 2.2. This Part is effective when it becomes law. 33
34
PART III. MATCHING GRANT FUNDS FOR COUNTIES AND PRIVATE 35
EMPLOYERS TO ASSIST WITH CAPACITY BUILDING IN CHILD CARE 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1015-First Edition
SECTION 3.1. There is appropriated from the General Fund to the Department of 1
Health and Human Services, Division of Child Development and Early Education (Division), the 2
sum of fifty million dollars ($50,000,000) in nonrecurring funds for the 2026-2027 fiscal year to 3
be used for grants to counties and private employers that provide assistance with capacity 4
building in child care in this State, including, but not limited to, (i) building construction, 5
renovation, upfitting, or improvements, (ii) expansion costs, (iii) furniture and equipment, or (iv) 6
playground installation. The Division shall award grants under this section pursuant to criteria 7
established by the Division in accordance with federal law and guidance. These grants shall be 8
one-time awards to assist with child care initiatives as established by the Division. Counties or 9
private employers seeking to receive funds under this section shall provide documentation of a 10
twenty-five percent (25%) match as a condition of receiving these State funds. A county or 11
private employer receiving grant funds under this Part may use up to nine percent (9%) of the 12
State funds awarded for administrative costs. 13
14
PART IV. CHILD CARE FOR CHILD CARE PROVIDERS PILOT PROGRAM 15
SECTION 4.1. There is appropriated from the General Fund to the Department of 16
Health and Human Services, Division of Child Development and Early Education (Division), the 17
sum of sixty million dollars ($60,000,000) in nonrecurring funds for the 2026-2027 fiscal year. 18
These funds shall be used to establish a two-year, statewide pilot program that provides child 19
care expansion assistance grants for child care providers providing direct care and employed full 20
time by any licensed child care program in this State to assist in recruiting and retaining 21
employees necessary to expand the supply of licensed child care to additional children from birth 22
through 5 years of age by ensuring that unaffordable child care is not a barrier to work for these 23
employees. For purposes of this Part, "child care provider" includes lead teachers, teachers, 24
teacher assistants, and administr