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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 542
Short Title: Child Care Mental & Behavioral Services/Funds. (Public)
Sponsors: Representatives Lambeth, Arp, Paré, and Rhyne (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
March 27, 2025
*H542-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO APPROPRIAT E FUNDS TO THE NORTH CAROLINA PARTNERSHIP FOR 2
CHILDREN, INC., TO E XPAND MENTAL AND BEH AVIORAL HEALTH SERVICES 3
FOR CHILDREN, FAMILI ES, AND STAFF IN CHI LD CARE FACILITY SET TINGS 4
AND TO ESTABLISH THE NORTH CAROLINA PARTNERSHIP FOR CHIL DREN, 5
INC., SPECIAL FUND. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.(a) There is appropriated from the ARPA Temporary Savings Fund, 8
established in Section 1.3(a) of S.L. 2023 -7, to the Department of Health and Human Services, 9
Division of Child Development and Early Education, the sum of seven million five hundred 10
thousand dollars ($7,500,000) in nonrecurring funds for each fiscal year of the 2025-2027 fiscal 11
biennium to be allocated to the North Carolina Partnership for Children, Inc., (NCPC) to expand 12
mental and behavioral health services for children, families, and staff in child care facility settings 13
and out -of-school programs. The NCPC shall spend the funds appropriated in this act in the 14
following budget codes: PSC 5415 Health Care Access and Support, PSC 5505 Parent Education, 15
PSC 3125 Quality Child Care, and PSC 5509 Parents as Teachers. The NCPC shall distribute the 16
funds appropriated in this act to local partnerships, as determined by the NCPC. These funds 17
shall supplement and not supplant existing Smart Start partnership behavioral health spending. 18
Funds appropriated in this act shall not revert at the end of the 2025 -2027 fiscal biennium but 19
shall remain available for costs associated with mental and behavioral health initiatives described 20
in this subsection until expended. 21
SECTION 1.(b) The NCPC shall submit a progress report on the mental and 22
behavioral health initiatives described in subsection (a) of this section to the Joint Legislative 23
Oversight Committee on Health and Human Services, the Secretary of the Department of Health 24
and Human Services, and the Fiscal Research Division by March 15, 2026, and a final report by 25
November 15, 2027. The progress report and final report shall include all of the following: 26
(1) The name of each local partnership that received funds. 27
(2) The number of children served by each local partnership. 28
(3) The types of mental and behavioral health services provided by each local 29
partnership. 30
(4) Recommendations for continuing and/ or expanding mental and behavioral 31
health initiatives for children, families, and staff in child care facility settings. 32
SECTION 1.(c) Additional funds allocated in this act to the North Carolina 33
Partnership for Children, Inc., from the Department of Heal th and Human Services, Division of 34
Child Development and Early Education, for each year of the 2025-2027 fiscal biennium are not 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 542-First Edition
subject to the administrative cost requirements under Section 9D.5(b) of S.L. 2023 -134, child 1
care services funding requirement s under G.S. 143B-168.15(b), child care subsidy expansion 2
requirements under G.S. 143B-168.15(g), or match requirements under Section 9D.5(d) of S.L. 3
2023-134. 4
SECTION 2. G.S. 143B-168.15(h) reads as rewritten: 5
"(h) The North Carolina Partnership for Children, Inc., Special Fund is hereby established 6
as an interest -bearing, nonreverting special fund in the Department of Health and Human 7
Services. Funds appropriated from the General Fund to the Department for Smart Start and the 8
North Carolina Partnership for Children, Inc., (NCPC) shall be deposited in the Fund and shall 9
be used by the NCPC and local partnership s exclusively for the purposes authorized in this 10
section, unless otherwise expressly provided by law . State funds allocated to local partnerships 11
that are unexpended at the end of a fiscal year shall not revert but shall remain available to the 12
North Carolina Partnership for Children, Inc., to reallocate to local partnerships. Notwithstanding 13
G.S. 147-86.11 or any other provision of law to the contrary, the NCPC shall be allowed to hold 14
cash in excess of incurred expenditures at the end of each fiscal year up to five million dollars 15
($5,000,000). Not later than August 1 of each year, the NCPC shall provide to the Department of 16
Health and Human Services, Division of Child Development and Early Education , a financial 17
status report for the preceding fiscal year that includes all actual expenditures and remaining cash 18
on hand." 19
SECTION 3. This act is effective when it becomes law. 20