Georgia House Bill HR396

Georgia 2025-2026 Regular Session

• Introduced: 2/26/25

Caption

General Assembly; creation of Georgia's Children First Trust Fund; authorize - CA

Summary

House Resolution 396 proposes a constitutional amendment to authorize the Georgia General Assembly to create the Georgia's Children First Trust Fund. The fund would be established to provide financial assistance for child care services in Georgia, including scholarships, grants, or other forms of aid. The resolution specifically directs an initial one-time appropriation of $3 billion from the state's Revenue Shortfall Reserve into the fund, while also allowing the legislature to make additional appropriations in the future. The measure also provides that money deposited into the trust fund would not lapse at the end of a fiscal year, and that a portion of the principal could be invested and reinvested. Earnings from those investments would remain in the fund and be used for the same child care assistance purposes. Because the proposal is a constitutional amendment, it would need to be submitted to voters for ratification before taking effect.

Impact

If adopted, the resolution would amend the Georgia Constitution to create a new spending and investment mechanism outside the normal lapsing rules for appropriations. It would authorize the General Assembly to dedicate a large reserve balance to a child care trust fund and to structure that fund so both principal and investment returns can be used for child care subsidies and related assistance. The proposal would affect state budget management, the Revenue Shortfall Reserve, and future appropriations policy, while creating a new constitutional basis for child care funding.

Sentiment

The bill’s framing suggests strong support for child care access and for using a historic state surplus to make a long-term investment in families and early care infrastructure. The ballot language emphasizes a self-sustaining fund and access to child care services, indicating a generally positive policy intent. No committee transcripts or recorded votes were provided, so there is no additional evidence of formal debate, amendment, or opposition in the available record.

Contention

The main point of potential contention is fiscal: the proposal would move $3 billion from the Revenue Shortfall Reserve into a dedicated trust fund, which could raise concerns about reducing budget flexibility, limiting the state’s rainy-day capacity, or committing surplus funds to a single purpose. Supporters are likely to favor the long-term child care investment and the nonlapsing structure, while critics may question the size of the appropriation, the constitutional dedication of funds, and whether the state should reserve that money for broader needs. No specific objections or named opponents appear in the provided materials.