The Working Hearts, Empowered Homes Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 561

Short Title: The Working Hearts, Empowered Homes Act. (Public)
Sponsors: Senator Theodros (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S561-v-1*
A BILL TO BE ENTITLED 1
AN ACT INTEGRATING A ND EXPANDING HEALTHC ARE, CHILD CARE, 2
NUTRITIONAL ASSISTAN CE, AND PREVENTIVE C ARE PROGRAMS TO 3
STRENGTHEN SUPPORT FOR WORKING FAMILIES IN NORTH CAROLINA; A ND 4
APPROPRIATING FUNDS FOR THESE PURPOSES. 5
Whereas, working families face significant financial and logistical barriers to 6
accessing essential services such as healthcare, child care, and nutrition assistance; and 7
Whereas, existing programs that provide support to working families operate 8
independently, creating inefficiencies and gaps in service delivery for low - and middle-income 9
families; and 10
Whereas, integrating and enhancing the State's family support programs and services 11
will promote economic stability, health equity, and long -term well-being for North Caroli na's 12
working families; Now, therefore, 13
The General Assembly of North Carolina enacts: 14
15
PART I. TITLE 16
SECTION 1.1. This act shall be known and may be cited as "The Working Hearts, 17
Empowered Homes Act." 18
19
PART II. DEFINITIONS 20
SECTION 2.1. The following definitions apply in this act: 21
(1) Integrated family support services. – Programs and services administered at 22
the State level that are designed to strengthen families through the provision 23
of State -funded or State -subsidized child care, nu tritional assistance, 24
healthcare, or preventive care. 25
(2) Preventive care. – Healthcare services and activities aimed at reducing 26
long-term healthcare costs and improving an individual's overall well-being. 27
(3) Working families. – Households with one or more adults who are engaged in 28
employment but require support services to maintain economic stability. 29
30
PART III. PROGRAM INTEGRATION 31
32
STATEWIDE FAMILY SUPPORT COORDINATION SYSTEM 33
SECTION 3.1.(a) The Department of Health and Human Services shall coordinate 34
all family support contracts and activities across divisions. This coordination shall address 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 561-First Edition
duplication, cost efficiency, and effectiveness and shall ensure compliance with federal 1
requirements while maximizing State and federal resources. 2
SECTION 3.1.(b) The Department of Health and Human Services shall develop a 3
family support coordination system that integrates family support programs, services, and 4
activities offered throughout the State to ensure streamlined access for working families. This 5
system shall consolidate application processes, eligibility requirements, and service delivery 6
methods for family support programs and services. 7
8
FAMILY SUPPORT REGIONAL HUBS PILOT PROGRAM 9
SECTION 3.2.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 10
appropriated from the General Fund to the Department of Health and Human Services the sum 11
of three million dollars ($3,000,000) in nonrecurring funds for each year of the 2025-2027 fiscal 12
biennium to establish and administer a Regional Hubs Pilot Pr ogram (Pilot Program) in up to 13
three different regions of the State. The purpose of this Pilot Program is to evaluate the 14
effectiveness of utilizing regional hubs that are available in person, through the World Wide 15
Web, or through any other means of elect ronic access to assist working families with gaining 16
access to family support programs and services in one setting. The Pilot Program authorized by 17
this section shall terminate upon the filing of the report required by subsection (b) of this section. 18
SECTION 3.2.(b) Eligible Use of Funds. – The Department may use the funds 19
appropriated by subsection (a) of this section to enter into a contract with a third -party entity to 20
assist with the design, implementation, and operation of these regional hubs. 21
SECTION 3.2.(c) Reporting. – By February 1, 2028, the Department of Health and 22
Human Services shall conduct and submit to the Joint Legislative Oversight Committee on 23
Health and Human Services and the Fiscal Research Division a comprehensive evaluation of the 24
Pilot Program authorized by this section. The evaluation shall include, at a minimum, all of the 25
following information: 26
(1) A detailed breakdown of Pilot Program expenditures. 27
(2) A description of the design and operation of each regional hub. 28
(3) The number of counties and individuals served by each regional hub. 29
(4) A recommendation as to whether the Pilot Program should be implemented 30
statewide. 31
32
PART IV. SERVICE EXPANSION 33
34
CHILD CARE INNOVATION PILOT PROGRAM 35
SECTION 4.1.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 36
appropriated from the General Fund to the Department of Health and Human Services, Division 37
of Child Development and Early Education (DCDEE), the sum of seven million dollars 38
($7,000,000) in nonrecurring funds for each yea r of the 2025–2027 fiscal biennium to establish 39
and administer a Child Care Innovation Pilot Program (Pilot Program). The purpose of the Pilot 40
Program is to evaluate the effectiveness of targeted child care interventions in improving access 41
for working families, especially those employed in industries with nontraditional work hours or 42
employed by small businesses. Upon the filing of the report required by subsection (c) of this 43
section, the Pilot Program terminates. 44
SECTION 4.1.(b) Eligible Use of Funds. – The DCDEE shall not use the funds 45
appropriated by subsection (a) of this section for any purpose other than to do one or more of the 46
following: 47
(1) To award grants on a competitive basis to small and midsize nonprofit 48
employers that establish or contract for on-site or near-site child care services 49
for their employees. The amount of any competitive grant will be limited to 50
the amount necessary to match the employer's expenses for these on -site or 51
General Assembly Of North Carolina Session 2025
Senate Bill 561-First Edition Page 3
near-site child care services. The DCDEE shall develop an application 1
process, eligibility criteria, and selection criteria for the competitive grants 2
authorized by this section. 3
(2) To award directed grants of up to one thousand dollars ($1,000) each on a first 4
come, first serve basis to nonprofit or faith-based child care centers located in 5
rural or underserved communities to expand their child caring capacity or 6
extend their hours of operation. The DCDEE shall develop an application 7
process, eligibility criteria, and selection criteria for the microgrants 8
authorized by this section. 9
(3) To fund smaller, innovative child care pilot projects in up to five counties 10
determined by the Department to have the greatest need for expanded access 11
to child care, based on child care availability and economic data. 12
SECTION 4.1.(c) Report. – By February 1, 2028, the DCDEE shall report to the Joint 13
Legislative Oversight Committee on Health and Human Services and the Fiscal Research 14
Division on the outcomes of the Pilot Program authorized by this section. The report shall 15
include at least all of the following: 16
(1) An itemized list of expenditures. 17
(2) For any grants awarded under this section: 18
a. The identity and a brief description of each grantee and each program 19
or service offered by the grantee. 20
b. The amount of funding awarded to each grantee. 21
c. The number of individuals served by each grantee and, for the 22
individuals served, the types of services provided to each. 23
d. Any other information requested by the Office of Rural Health as 24
necessary for evaluating the success of the Community Health Grant 25
Program. 26
(3) An evaluation of the outcomes and cost-effectiveness of the Pilot Program. 27
(4) Any other information the DCDEE believes to be necessary for evaluating the 28
success of the Pilot Program. 29
30
NUTRITION ASSISTANCE PILOT PROGRAM 31
SECTION 4.2.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 32
appropriated from the General Fund to the Department of Health and Human Services, Division 33
of Child and Family Well -Being (DCFW), the sum of five million dollars ($5,00 0,000) in 34
nonrecurring funds for each year of the 2025 –2027 fiscal biennium to establish the Targeted 35
Food Access Pilot Program (Pilot Program). The purpose of this Pilot Program is to improve 36
food security and nutritional outcomes for working families through targeted, community-based 37
strategies. The Pilot Program authorized by this section shall terminate upon the filing of the 38
report required by subsection (c) of this section. 39
SECTION 4.2.(b) Eligible Use of Funds. – The DCFW shall not use the funds 40
appropriated by subsection (a) of this section for any purpose other than to do one or more of the 41
following: 42
(1) To support produce prescription programs administered in partnership with 43
local he alth clinics or federally qualified health centers, targeting working 44
families who have at least one family member with a chronic health condition 45
or that is actively engaged in workforce training. For the purpose of this 46
subdivision, a produce prescription program is a program in which healthcare 47
providers prescribe fruits and vegetables to patients at risk for diet -related 48
health problems or food insecurity, enabling access to healthy produce at low 49
or no cost. 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 561-First Edition
(2) To support the establishment or expansio n of mobile food markets or food 1
delivery programs for working families in areas of the State with food deserts, 2
defined as areas of the State with limited access to affordable, nutritious food 3
due to a lack of grocery stores or other sources of fresh prod uce within a 4
reasonable distance. 5
(3) To support local partnerships with farmers markets, food co -ops, and 6
culturally appropriate food providers to improve food security for working 7
families. 8
(4) To provide the State contribution necessary to draw down fed eral matching 9
funds available through the Food and Nutrition Services Program or nutrition 10
initiatives supported by the United States Department of Agriculture, or both, 11
for the activities described in subdivisions (1) through (3) of this subsection. 12
SECTION 4.2.(c) Report. – By February 1, 2028, the DCFW shall report to the Joint 13
Legislative Oversight Committee on Health and Human Services and the Fiscal Research 14
Division on the Pilot Program authorized by this section. The report shall include at least all of 15
the following information: 16
(1) An itemized list of expenditures. 17
(2) The number of people served. 18
(3) An evaluation of the nutritional impact of the Pilot Program. 19
(4) An evaluation of the outcomes and cost-effectiveness of the Pilot Program. 20
(5) Any other information the DCFW believes to be necessary for evaluating the 21
success of the Pilot Program. 22
23
YEAR-ROUND NUTRITION SERVICE PILOT PROGRAM 24
SECTION 4.3.(a) Program, Purpose. – To the extent funds are made available for 25
the purpose, the Department of Public Instruction shall establish and administer the Year-Round 26
Nutrition Service Pilot Program (Program) in accordance with the provisions of this section. The 27
purpose of the program is to enable select local school administrative units to provide meal s to 28
students at no cost to students through the summer. 29
SECTION 4.3.(b) Eligibility. – Any local school administrative unit that is or 30
contains schools that are eligible for and participating in the Community Eligibility Provision 31
Program is eligible to apply for the Program. 32
SECTION 4.3.(c) Application. – The Department of Public Instruction shall develop 33
and release an application for the Program each year. The Department shall notify the local school 34
administrative units selected to participate in the Program by July 15. The Department shall then 35
award grants to all selected local school administrative units. 36
SECTION 4.3.(d) Program Requirements. – Local school administrative units 37
participating in the Program shall do the following: 38
(1) Participate in the National School Lunch Program, School Breakfast Program, 39
and Summer Food Service Program. 40
(2) Provide two meals per day, breakfast and lunch, to students at no cost to the 41
students year-round, regardless of the school's instructional calendar. 42
SECTION 4.3.(e) Report. – No later than January 1 of each year of the Program, the 43
Department shall report to the Joint Legislative Education Oversight Committee at least the 44
following information: 45
(1) The selected local school administrative units and the award to each. 46
(2) The number of students served through the Program and the number of meals 47
served. 48
(3) The number of unfunded applications. 49
SECTION 4.3.(f) There is appropriated from the General Fund to the Department of 50
Public Instruction the sum of five million dollars ($5,000,000) in nonrecurring funds for the 51
General Assembly Of North Carolina Session 2025
Senate Bill 561-First Edition Page 5
2025-2026 fiscal year for the Department to establish and administer the Year-Round Nutrition 1
Service Pilot Program, as enacted by this section. 2
SECTION 4.3.(g) This section becomes effective July 1, 2025, and applies 3
beginning with the 2025-2026 school year. 4
5
PART V. PREVENTIVE HEALTHCARE AND FAMILY WELL-BEING 6
7
PREVENTIVE CARE SERVICES 8
SECTION 5.1. Effective July 1, 2025, there is appropriated from the General Fund 9
to the Department of Health and Human Services, Division of Central Management and Support, 10
Office of Rural Health (ORH), the sum of two million dollars ($2,000,000) in recurring funds for 11
the 2025-2027 fiscal biennium to be used to provide grants to local health departments, federally 12
qualified health centers, community health centers, and other safety -net providers to expand 13
telehealth services in up to ten counties to enable working fa milies to participate in virtual 14
preventative care services, including wellness checkups, mental health counseling, and pediatric 15
consultations. In selecting grant recipients, the ORH shall prioritize safety-net providers located 16
in low-wealth counties. 17
18
PARENTAL HEALTH AND FAMILY SUPPORT SERVICES 19
SECTION 5.2. Effective July 1, 2025, there is appropriated from the General Fund 20
to the Department of Health and Human Services, Division of Child and Family Well-Being, the 21
sum of three million dollars ($3,000,000) in recurring funds for each year of the 2025-2027 fiscal 22
biennium to be used to offer employers with 50 or more employees an incentive to offer on -site 23
child care and flexible work hours to accommodate working families. 24
25
PART VI. FEDERAL MATCHING FUNDS 26
SECTION 6.1. It is the intent of the General Assembly that the Department of Health 27
and Human Services and the Department of Public Instruction pursue all available federal 28
matching funds to supplement State investments in integrated family support services. 29
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PART VII. OVERSIGHT AND ACCOUNTABILITY 31
SECTION 7.1.(a) Creation of Family Support Advisory Board. – There is 32
established the Family Support Advisory Board (Advisory Board) within the Department of 33
Health and Human Services. The Advisory Board shall consist of the following nine members: 34
(1) The Director of the Division of Child and Family Well-Being or the Director's 35
designee. 36
(2) The Secretary of the Department of Public Instruction or a designee. 37
(3) Two members of the House of Representatives appo inted by the Speaker of 38
the House of Representatives. 39
(4) Two members of the Senate appointed by the President Pro Tempore of the 40
Senate. 41
(5) Three members appointed by the Governor, one of whom shall be a 42
representative of a community -based organization, one of whom shall be an 43
expert in healthcare policy, and one of whom shall be an expert in social 44
services. 45
SECTION 7.1.(b) Chairperson. – A chairperson shall be elected from among the 46
members. The chairperson shall organize and direct the work of the Advisory Board. 47
SECTION 7.1.(c) Administrative Support. – The Department of Health and Human 48
Services shall provide necessary clerical and administrative support to the Advisory Board. 49
General Assembly Of North Carolina Session 2025
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SECTION 7.1.(d) Meetings. – The Advisory Board shall meet at least quarterly and 1
at the call of the chairperson. A majority of the Advisory Board constitutes a quorum for the 2
transaction of business. 3
SECTION 7.1.(e) Expenses. – Members of the Advisory Board who are State 4
officers or employees shall receive no compensation for serving on the Advisory Board but may 5
be reimbursed for their expenses in accordance with G.S. 138-6. Members of the Advisory Board 6
who are full -time salaried public officers or employees other than State officers or employees 7
shall receive no compensation for serving on the Advisory Board but may be reimbursed for their 8
expenses in accordance with G.S. 138-5(b). All other members of the Advisory Board may 9
receive compensation and reimbursement for expenses in accordance with G.S. 138-5. 10
SECTION 7.1.(f) Duties. – The Advisory Board shall provide consultation to the 11
Department of Health and Human Services with respect to the fulfillment of the Department's 12
responsibilities under Section 3.1 of this act. 13
SECTION 7.1.(g) Annual Report. – Annually by May 1, b eginning May 1, 2027, 14
the Advisory Board shall conduct a comprehensive evaluation of family support services in North 15
Carolina and submit a report of its findings and recommendations to the Joint Legislative 16
Oversight Committee on Health and Human Services and the Fiscal Research Division. The 17
evaluation shall be made publicly available on the Department's website and shall include at least 18
all of the following: 19
(1) The impact of integrated family support services on family economic stability. 20
(2) The efficiency and effectiveness of the statewide family support coordination 21
system developed pursuant to Section 3.1(b) of this act. 22
(3) Gaps and challenges in State -administered family support programs and 23
services requiring policy adjustments. 24
25
PART VIII. SEVERABILITY 26
SECTION 8.1. If any section or provision of this act is declared unconstitutional or 27
invalid by the courts, it does not affect the validity of this act as a whole or any part other than 28
the part declared to be unconstitutional or invalid. 29
30
PART IX. EFFECTIVE DATE 31
SECTION 9.1. Except as otherwise provided, this act is effective when it becomes 32
law. 33