House Bill 651 would lower the required parent copayment for families receiving subsidized child care in North Carolina. The bill amends existing law so that the fee share for families who must contribute to the cost of care would drop from 10% of gross family income to 7%. It also keeps the existing blended-rate and part-time care formulas, which are calculated as percentages of the full-time copayment.
In addition to changing the copayment formula, the bill appropriates $25 million in recurring General Fund dollars to the Department of Health and Human Services, Division of Child Development and Early Education, for each year of the 2025-2027 biennium. Those funds are intended to offset the reduced parent payments and support the subsidized child care program. The act would take effect July 1, 2025.
Impact
The bill would directly amend Section 9D.3(b) of S.L. 2023-134, reducing the statutory parent cost-share for subsidized child care and thereby lowering out-of-pocket child care expenses for eligible families. It would also create a recurring state funding obligation of $25 million per year for the 2025-2027 biennium, increasing General Fund spending for the child care subsidy program and affecting DHHS administration of early education subsidies.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a supportive child care affordability proposal. The sponsors are all House members, and the bill’s title and funding provision suggest an intent to ease financial pressure on working families using subsidized care. No contrary positions are documented in the supplied record.
Contention
No specific points of contention are captured in the provided transcripts or voting history because none were included. Potential areas of debate, based on the bill itself, would likely include the cost of the recurring appropriation, the use of General Fund dollars, and whether reducing copayments is the best way to expand access to child care subsidies. Any opposition would most likely focus on budget impact, while supporters would emphasize affordability and family support.
Codifies child care copayments in law, expand zero copays to families under 125% FPL, lower costs for working families, and cap most copayments at 6% while preserving a 7% statutory maximum.