North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S593

Introduced
3/25/25  
Refer
3/26/25  

Caption

Grant Our Kids Care Act

Summary

Senate Bill 593, the Grant Our Kids Care Act, would create a two-year statewide pilot program administered by the Department of Health and Human Services’ Division of Child Development and Early Education. The program would use $30 million in nonrecurring General Fund appropriations in each year of the 2025-2027 biennium to provide child care expansion assistance grants for eligible full-time employees of licensed child care programs, including lead teachers, teachers, teacher assistants, and administrators. The stated goal is to help child care programs recruit and retain staff by reducing the cost of child care for those workers, thereby making it easier for programs to expand capacity for children from birth through age five. Under the bill, eligible child care providers must earn at or below 85% of state median income and work at least 32 hours per week at a licensed child care center or family child care home. If approved, the Division would pay 75% of the published tuition rate for up to two children per eligible employee, while the employer must cover at least 25%. For family child care home providers seeking assistance for their own children, the bill requires them to add care for additional children in their program equal to the number of their own children receiving assistance. Grants could be distributed monthly or quarterly, and programs would have to notify the Division when an eligible employee leaves employment or risk repaying funds paid after separation. The bill would affect state law by creating a new grant program within DHHS and directing the Division to administer it statewide, with priority for counties with the highest unmet demand or longest wait lists for subsidized child care. It also explicitly allows licensed child care programs to participate even if they do not participate in the federal Child Care Assistance Program. The bill requires reporting to legislative oversight and fiscal staff in 2026 and 2027 on participation, staffing, new slots created, and additional children served, which would give lawmakers data to evaluate whether the pilot expands child care supply. The overall sentiment reflected in the bill itself is supportive of child care workers and providers, with the policy framed as a workforce and access initiative. No committee transcripts or recorded votes were provided, so there is no documented debate or formal vote history to indicate broader legislative support or opposition. Based on the text, the bill appears designed to address child care staffing shortages and affordability barriers, suggesting likely favorable reception among child care advocates and providers. Potential points of contention include the size of the appropriation, the requirement that employers contribute at least 25% of tuition costs, and the administrative burden of verifying eligibility, tracking employment status, and reporting outcomes. Some stakeholders may also question whether the pilot’s income cap, full-time work requirement, and county prioritization criteria are the best way to target assistance. The bill’s emphasis on using public funds to subsidize child care for child care workers themselves may draw scrutiny from those concerned about cost, program design, or whether the approach will sufficiently expand licensed slots statewide.

Impact

The bill would add a new statewide pilot grant program to the responsibilities of the Department of Health and Human Services, Division of Child Development and Early Education, funded with $30 million per year in nonrecurring General Fund money for the 2025-2027 biennium. It would create a new mechanism for subsidizing child care costs for eligible employees of licensed child care programs, require employer cost-sharing, and establish reporting obligations to the General Assembly. The program is intended to increase recruitment and retention in the child care workforce and, indirectly, expand licensed child care capacity for young children.

Sentiment

No committee discussion transcripts or vote records were provided, so there is no direct evidence of legislative debate or recorded support/opposition. From the bill text, the measure is clearly framed as a pro-child-care workforce and access initiative, suggesting a generally favorable policy posture toward child care providers, employees, and families seeking care. The absence of recorded votes means sentiment cannot be measured from legislative action history in the materials provided.

Contention

The main likely areas of contention are fiscal cost, program administration, and eligibility design. Critics may focus on the $30 million annual appropriation and whether the pilot will produce measurable increases in child care slots. Others may question the 85% of state median income threshold, the 32-hour full-time requirement, and the requirement that employers pay 25% of tuition, especially for smaller providers. There may also be concern about compliance and recoupment rules when employees leave, as well as whether prioritizing high-demand counties could leave some areas with less immediate access to grants.

Companion Bills

No companion bills found.

Previously Filed As

NC HB4451

CARE for Kids Act of 2025 Caregivers, Access, and Responsible Expansion for Kids Act of 2025

NC SB857

Child Care - Prekindergarten Expansion Grant Modifications and Workgroup

NC HB8728

Feed Our Kids Act of 2026

NC SB169

Child Care Workforce and Facilities Act of 2025This bill requires the Department of Health and Human Services to provide states and tribal entities with grants to increase access to licensed child care services.The grants may be used to develop and expand the child care workforce or child care facilities in locations with insufficient available child care. Specifically, grants cover 50% of the cost of programs to support the education and training of caregivers or projects to build, expand, or renovate child care facilities in these areas.

NC HB2239

child care; grant program; fund

NC HB3274

Child Care Infrastructure Act Infrastructure Grants To Improve Child Care Safety Act

NC SB95

Child Care: Assistance/grants

NC HB7017

Kids Before Cuts Act

NC SB080

Cradle to Career Grant Program Creation

NC A5127

Establishes child care stabilization and operation grant program in DHS.

Similar Bills

No similar bills found.