NC H574

Increases child care subsidy market rates to the seventy-fifth percentile based on the 2018 Child Care Market Rate Study for children birth through 5 years of age in three-, four-, and five-star-rated facilities, effective October 1, 2021.

Appropriates $13.5 million for fiscal year 2021-2022 and $18 million for fiscal year 2022-2023 to implement the market rate increases for subsidized child care providers.

Establishes a temporary statewide payment rate floor for counties with rates below the state rate, with an exception allowing county rates in counties with fewer than 50 children per age group if the statewide rate would inhibit purchasing child care for low-income children.

Appropriates $40.5 million for fiscal year 2021-2022 and $54 million for fiscal year 2022-2023 to implement the temporary market rate increases, with this temporary provision expiring when the state adopts a new rate methodology.

Removes the 20-month enrollment limitation for subsidized child care services for those pursuing postsecondary education and appropriates $10 million annually for the 2021-2023 biennium for this change.