Child Welfare/Foster Care/Child Care Funding.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1042

Short Title: Child Welfare/Foster Care/Child Care Funding. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1042-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE ADDITIONAL FUNDING FOR CHILD WELFARE, FOSTER CARE, 2
AND CHILD CARE. 3
The General Assembly of North Carolina enacts: 4
5
PART I. WEB AND MOBI LE BASED COMMUNICATION PLATFORM FOR USE IN 6
CHILD WELFARE CASES 7
SECTION 1.1. There is appropriated from the General Fund to the Department of 8
Health and Human Services the sum of two hundred and fifty thousand dollars ($250,000) in 9
recurring funds beginning in the 2026-2027 fiscal year to be allocated to the Office of Indigent 10
Defense Services to contract with an approved vendor, no later than October 1, 2026, for the 11
implementation of a secure web and mobile based communications platform to ensure 12
compliance with federal and State requirements for the following: 13
(1) Advanced notifi cation via automated electronic methods such as text 14
messaging or email to all parties and their attorneys, to the persons providing 15
care to the juvenile, and to any other person or agency designated by the court 16
for all court hearings and for interagency team meetings initiated by the 17
county department of social services such as permanency planning review 18
meetings, child and family team meetings, and placement status change 19
meetings. 20
(2) Enhanced communication between attorneys and clients and between part ies 21
to reduce court continuances, share discovery, and reduce barriers to 22
permanency. 23
SECTION 1.2. The Administrative Office of the Courts, Indigent Services of North 24
Carolina, the Guardian Ad Litem Program, and the Division of Social Services of the Nort h 25
Carolina Department of Health and Human Services shall enter into a data sharing agreement to 26
enable the vendor selected pursuant to Section 1.1 of this act to receive the data necessary to 27
ensure timely notification of court hearings and interagency tea m meetings and to ensure the 28
platform receives accurate information. 29
SECTION 1.3. Section 1.1 of this act becomes effective July 1, 2026. Section 1.2 30
of this act becomes effective when it becomes law. 31
32
33
34
PART II. SPORTS WAGERING/LOTTERY CHANGES 35
SECTION 2.1. G.S. 105-113.128(1) reads as rewritten: 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1042-First Edition
"(1) Two One hundred four million dollars ($2,000,000) ($104,000,000) annually 1
to the Department of Health and Human Services for Services, to be used as 2
follows: 3
a. Four million dollars ( $4,000,000) for gambling addiction education 4
and treatment programs. 5
b. Twenty-five million dollars ($25,000,000) for child welfare and foster 6
care services. 7
c. Seventy-five million dollars ($75,000,000) for child-care services." 8
SECTION 2.2. The Department of Health and Human Services shall use the funds 9
credited as provided in G.S. 105-113.128(1), as amended by Section 2.1 of this act, to annually 10
provide the following: 11
(1) Four million dollars ($4,000,000) for gambling addiction education and 12
treatment programs. 13
(2) Twenty-five million dollars ($25,000,000) to be used for child welfare and 14
foster care services including: 15
a. Reimbursement for home inspections required to obtain and maintain 16
foster home and therapeutic foster home licensure. 17
b. Reimbursement for training required to obtain and maintain licensure 18
as a therapeutic foster parent. 19
c. Reimbursement for items needed by a child at the child's initial 20
placement. Such items include school supplies, toiletries, clothing, 21
diapers, and other items to assist in the transition, and which should be 22
chosen with the child's input when possible. Reimbursement shall be 23
up to two hundred fifty dollars ($250) for children through five years 24
of age and up to five hundred dollars ($500) for children from six years 25
of age. 26
d. Emergency placement. 27
(3) Seventy-five million dollars ($75,000,000) to be used for child -care services 28
including: 29
a. Increasing the child -care subsidy market rates to the seventy -fifth 30
percentile as recommended by the 2023 Child Care Market Rate Study 31
for children in three-, four-, and five-star-rated child care centers and 32
homes. 33
b. Extension of the Tri -Share Child -Care program established by S.L. 34
2023-134 and amended by S.L. 2024-34. 35
c. Increasing child-care providers inclusive of extending and expanding 36
the in-home child-care pilot program established by S.L. 2023-134. 37
SECTION 2.3. G.S. 18C-162(a) reads as rewritten: 38
"(a) The Commission shall allocate revenues to the North Carolina State Lottery Fund in 39
order to increase and maximize the available revenues for education purposes, and to the extent 40
practicable, shall adhere to the following guidelines: 41
(1) At least fifty percent (50%) of the total annual revenues, as described in this 42
Chapter, shall be returned to the public in the form of prizes. 43
(2) At least thirty-eight percent (38%) of the total annual revenues, as described 44
in this Chapter, shall be transferred as provided in G.S. 18C-164. 45
(3) No more than five percent (5%) of the total annual revenues, as described in 46
this Chapter, shall be allocated for payment of expenses of the Lottery. 47
(4) No more than seven percent (7%) of the face value of tickets or shares, as 48
described in this Chapter, shall be allocated for compensation paid to lottery 49
game retailers." 50
General Assembly Of North Carolina Session 2025
Senate Bill 1042-First Edition Page 3
SECTION 2.4. The Department of Health and Hum an Services shall adopt or 1
amend any rules, policies, or procedures necessary to give effect to Sections 2.1 and 2.2 of this 2
act. 3
SECTION 2.5. Sections 2.1 and 2.2 of this act become effective July 1, 2026, and 4
apply to net proceeds credited on or after that date. Section 2.3 of this act becomes effective July 5
1, 2026. 6
7
PART III. PLAN FOR IMPLEMENTATION OF STATEWIDE FLOOR 8
SECTION 3. The Department of Health and Human Services, Division of Child 9
Development and Early Education (Division), shall develop a plan for implementing a statewide 10
child care subsidy reimbursement rate floor. The Division shall submit a report with their 11
recommended plan no later than December 1, 2026 to the Joint Legislative Oversight Committee 12
on Health and Human Services and the Fiscal Research Division. 13
14
PART IV. EFFECTIVE DATE 15
SECTION 4. Except as otherwise provided, this act becomes effective when it 16
becomes law. 17