NC S594

Increases child care subsidy market rates to the 75th percentile based on the 2023 Child Care Market Rate Study for three-, four-, and five-star-rated child care centers and homes, effective October 1, 2025

Establishes a statewide floor for child care subsidy rates, ensuring counties with rates below the state rate receive the 75th percentile statewide market rate for children birth through age 5

Allows counties with fewer than 50 children per age group to use their county market rate if the statewide rate would be lower and inhibit purchasing child care for low-income children

Appropriates $110 million in recurring funds from the General Fund for each year of the 2025-2027 fiscal biennium to the Division of Child Development and Early Education

Becomes effective July 1, 2025