Senate Bill 692 would reduce the amount that families pay in copayments for subsidized child care in North Carolina. Under current law referenced in the bill, families required to share in the cost of care generally pay fees based on 10% of gross family income; this bill lowers that benchmark to 5% of gross family income. The bill also keeps the existing proportional rules for blended-rate and part-time care, which would continue to be calculated as percentages of the full-time copayment.
The measure is a targeted amendment to Section 9D.3(b) of S.L. 2023-134, which governs family fees in the state’s subsidized child care program. If enacted, it would directly reduce out-of-pocket child care costs for participating families and would likely increase the state’s share of the cost of subsidized care. The act would take effect July 1, 2025.
Impact
This bill would amend North Carolina law governing subsidized child care copayments by changing the family cost-share standard from 10% to 5% of gross family income. It would affect families receiving subsidized child care assistance, child care providers that bill under the program, and the state agencies administering child care subsidies, likely requiring updated fee schedules and budget adjustments to cover the reduced parent contribution.
Sentiment
The available context suggests the bill is framed positively as a child care affordability measure, with sponsors from the Senate Democratic caucus indicating support for lowering costs for working families. No committee debate or recorded votes are provided, so there is no evidence of formal opposition or amendment activity in the supplied materials. Overall, the bill appears to have been introduced with a supportive policy intent focused on reducing the financial burden of child care.
Contention
The main policy issue is fiscal and distributive: supporters would likely view the reduction in copays as necessary to make child care more affordable and accessible, while potential critics could argue that lowering family contributions increases state costs or shifts more of the subsidy burden to taxpayers. Another possible point of contention is whether a 5% income-based copay is the appropriate level for balancing affordability with program sustainability. No specific objections, amendments, or recorded disagreements are included in the provided context.
An act to amend Section 10227.6 of of, and to add Section 10227.7 to, the Welfare and Institutions Code, relating to childcare, and declaring the urgency thereof, to take effect immediately.
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.