NC S412

Child care subsidy market rates increase to the 75th percentile beginning July 1, 2025, for centers and homes rated one to five stars, with $123.5 million in recurring funds appropriated annually for the 2025-2027 biennium

Rural counties (250 people per square mile or less) and infant/toddler care (birth to 3 years) each receive an additional 10% rate increase

$8 million in nonrecurring funds establishes a two-year pilot program through five western NC councils of governments to build child care capacity in Hurricane Helene-affected areas

Pilot program funds are allocated by child population under age 5: Land of Sky Regional Council ($1.9M), Western Piedmont COG ($1.84M), Foothills Regional Commission ($1.54M), High Country COG ($1.39M), and Southwestern Commission COG ($1.33M)

Participating councils must submit progress reports every six months starting January 1, 2026, tracking new child care programs, slots created, and associated costs