Lead. Invest. Families/Foster Teen Act (LIFT).

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 583

Short Title: Lead. Invest. Families/Foster Teen Act (LIFT). (Public)
Sponsors: Senators Murdock, Chitlik, and Applewhite (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S583-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO IMPLEMENT THE "LEADING INVESTMENTS IN FAMILIES AND FOSTER 2
TEENS ACT" AND TO IM PLEMENT THE HEALTHY START NC PROGRAM TO 3
REDUCE MATERNAL MORTALITY AND CHILDHOOD POVERTY AND TO OFFSET 4
COSTS BY MODIFYING T HE CORPORATE INCOME TAX RATE SO AS TO KEEP 5
THE EFFECTIVE TAX RA TE FOR CORPORATE TAX PAYERS MORE CLOSELY 6
ALIGNED WITH THAT WH ICH IS REQUIRED OF I NDIVIDUAL TAXPAYERS OF 7
THE STATE. 8
Whereas, wealth and income inequality, which have long plagued North Carolina and 9
the country, continue to grow; and 10
Whereas, structural poverty in our State leads to economic inequality, limited access 11
to education, healthcare, and affordable housing, and high rates of incarceration and 12
environmental hazards. These systemic disparities have created cycles of poverty across 13
generations, leading to underemployment, poor health outcomes, and lower educational 14
advancement; and 15
Whereas, a 2025 Bankrate survey found that fifty -nine percent (59%) of Americans 16
don't have enough savings to cover an unexpected $1,000 emergency expense; and 17
Whereas, we can keep more people out of poverty created by expected or unexpected 18
life changes, or emergencies, by providing targeted populations with recurring payments when 19
they need it most; and 20
Whereas, building on the successe s and learnings of City of Durham's guaranteed 21
income pilot, Excel, and Durham County's program, DCo Thrives, we can disrupt structural 22
poverty across North Carolina by zeroing in populations that are most susceptible to financial 23
hardship; and 24
Whereas, this act shifts the paradigm from reacting to poverty to preventing poverty; 25
Now, therefore, 26
The General Assembly of North Carolina enacts: 27
SECTION 1.(a) Article 3 of Chapter 143B of the General Statutes is amended by 28
adding a new Part to read: 29
"Part 3B. 30
"Leading Investments in Families and Foster Teens Act. 31
"§ 143B-146.30. Short title. 32
This act shall be known and may be cited as the "Leading Investments in Families and Foster 33
Teens Act." 34
"§ 143B-146.31. Definitions. 35
(a) The following definitions apply in this Part: 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 583-First Edition
(1) Department. – The Department of Health and Human Services. 1
(2) Eligible recipient. – A high school participant, expectant or new mother 2
participant, survivor of a natural disaster, or young adult exiting foster care 3
participant, who meets the criteria to receive Program income payments under 4
the Program. 5
(3) High school participant. – A public school student who is in Grade 12 and is 6
a homeless child or youth, as defined in 42 U.S.C. § 11434a(2). 7
(4) Expectant or new mother participant. – A person who is pregnant or a person 8
who birthed a child and that child is under 18 months of age. 9
(5) Survivor of a natural disaster. – Individuals that are eligible to receive Federal 10
Emergency Management Agency Individual Assistance or FEMA individual 11
assistance funds. 12
(6) Young adult exiting foster care participant. – Anyone who was in foster care 13
after 14 years of age, who exited foster care after 16 years of age, and who has 14
not yet turned 27 years of age. 15
(7) Fund. – The LIFT Fund. 16
(8) Liaison. – A local educational agency liaison for homeless children and youths 17
and unaccompanied youths designated pursuant to Section 11432(g)(1)(J)(ii) 18
of Title 42 of the United States Code. 19
(9) LIFT. – Leading Investments in Families and Foster Teens. 20
(10) Program. – The Leading Investments in Families and Foster Teens ( LIFT) 21
Program. 22
(11) Program income payment. – Cash payments of equal amounts issued monthly 23
to eligible recipients with the intention of stabilizing the eligible recipients ' 24
financial security and to protect from emergency expenditures. 25
(12) Taxable year. – As defined in G.S. 105-153.3. 26
"§ 143B-146.32. Program. 27
There is established the L eading Investments in Families and Foster Teens Program is 28
established within the Department to support eligible recipients with Program income payments 29
for limited periods of time in accordance with the Program. Eligible recipients shall only receive 30
funds to the extent that the Program income payments do not conflict with federal law, eligibility 31
for other federal of State programs, or any necessary waivers or exemptions for State or federal 32
benefits that are jeopardized. Eligible recipients shall receive payments of one thousand dollars 33
($1,000.00) per month in accordance with the following schedule: 34
(1) High school participant s shall receive Program income payments beginning 35
April 1 and continuing through to August 1 on the first business days of each 36
of those months. These payments begin on April 1, 2026 , and continue 37
through April 1, 2035, during those months listed above. 38
(2) Young adults exiting foster care shall receive Program income payments 39
beginning April 1, 2026, through to April 1, 2035, on the first business day of 40
each month. 41
(3) Expectant or new mothers shall receive Program income payments beginning 42
April 1, 2026 , through to April 1, 2035, on the first business day of each 43
month. 44
(4) Beginning April 1, 2026, through to April 1, 2035, s urvivors of a natural 45
disaster shall receive Program income payments the first business day of each 46
month for 12 months after qualifying for Federal Emergency Management 47
Agency Individual Assistance. 48
"§ 143B-146.33. Fund. 49
The LIFT Fund is hereby established within the Department as a nonreverting, 50
interest-bearing account to receive appropriations, gifts, grants, federal funds, donations, and any 51
General Assembly Of North Carolina Session 2025
Senate Bill 583-First Edition Page 3
other funds to support this Program. The Department shall administer the Fund. Interest earned 1
shall become part of the Fund. Monies in the Fund are hereby appropriated for the purposes set 2
forth in this Part and shall not be diverted for other purposes. 3
"§ 143B-146.34. Agency coordination. 4
The Department shall coordinate with the Department of Public Instruction, the Division of 5
Social Services, the Division of Public Health, and the Department of Public Safety, Division of 6
Emergency Management, for the respective eligible recipients under the Program to distribute 7
Program income payments. 8
"§ 143B-146.35. Taxation of Program income payments. 9
Notwithstanding any provision of law to the contrary, receipt of Program income payments 10
shall not be (i) considered taxable income for the purposes of State income taxes, (ii) considered 11
in calculating any State tax credits, (iii) used to offset any liabilities owed by an eligible recipient, 12
and (iv) affect income eligibility of the eligible recipient or the household of the eligible recipient 13
for any public assistance, benefits, or programs administered or funded by the State. To the extent 14
that this Program would create a conflict between receipt of Program income payments and the 15
federal program aid, the State agency shall seek to obtain federal exemptions or waivers 16
necessary, if available, in order to execute both programs fully for eligible recipients. The 17
Department may seek alternative payment methods for the Program through rulemaking, if 18
necessary, due to a federal program conflict." 19
SECTION 1.(b) The Department of Health and Human Services may adopt rules to 20
implement the provisions of this act. 21
SECTION 1.(c) G.S. 143B-146.35, as enacted by this act, is effective for taxes 22
imposed for taxable years beginning on or after January 1, 2026. The rema inder of this section 23
becomes effective July 1, 2025. 24
SECTION 2.(a) Program. – Of the funds received by the State and appropriated to 25
the Department of Health and Human Services from the Temporary Assistance for Needy 26
Families (TANF) Block Grant, the Depa rtment shall allocate to the Division of Social Services 27
(Division) the recurring sum of one hundred sixty -one million six hundred thousand dollars 28
($161,600,000) for each year of the 2025 -2027 fiscal biennium to implement the Healthy Start 29
NC Program (Pro gram). In addition, there is appropriated from the General Fund to the 30
Department the recurring sum of one hundred forty -six million three hundred thousand dollars 31
($146,300,000) for each year of the 2025-2027 fiscal biennium to be allocated to the Division of 32
Social Services for implementation of the Program. The purpose of the Program is to provide 33
nonrecurrent, short -term benefits in the form of prenatal and infant cash allowances to meet 34
pre- and post-birth needs of expecting mothers and babies. 35
SECTION 2.(b) Administration. – The Division shall develop detailed guidelines to 36
administer, and accomplish the purposes of, the Program. The Division, in administering the 37
Program, shall do all of the following: 38
(1) Study, and make any amendments necessary to, the TANF State plan, 39
including what was approved in Section 9J.1 of S.L. 2023-134, to implement 40
the Program. Notwithstanding any provision of law to the contrary, the 41
Division may modify the State plan to accomplish the purposes of this act. To 42
the extent the Division identifies State laws modified pursuant to the authority 43
provided in this subsection, the Division shall make recommendations to the 44
General Assembly for legislative changes needed. 45
(2) Define childbirth as a specific crisis situation and epi sode of need and take 46
other steps required to use TANF funds to provide nonrecurrent, short -term 47
benefits to families who give birth to a child. In so doing, the Division shall 48
follow the guidance from the United States Department of Health and Human 49
Services, Administration of Children and Families Office of Family 50
Assistance, for funding the Program in conformity with this section. 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 583-First Edition
(3) Adopt policies, including a compliant means-based test at the time of birth for 1
Program recipients (such as Medicaid or a percentage of the federal poverty 2
level), to identify needy families that can be supported with TANF Block 3
Grant dollars in a manner that will neither trigger time limits or work 4
requirements nor adversely affect entitlement to other State or federal aid. The 5
Division shall collect and review information relevant to the means -based 6
eligibility determination required by this section. 7
(4) Identify and partner with a nonprofit organization to administer the Program. 8
As a condition of partnering with the nonprofit organization, the Division shall 9
require that the organization (i) deliver programmatic funding to families as a 10
private gift below applicable federal maximums in such a way as to make it 11
non-taxable and protect, to the maximum extent possible, the receipt of other 12
social benefits and (ii) engage in fundraising efforts to spur the receipt of funds 13
donated through private philanthropy to expand the reach of the Program so 14
as to provide programmatic funding to families that do not qualify under 15
subdivision (3) of this subsection. 16
(5) Identify and report annually to the General Assembly on the number of 17
families receiving aid, broken down by those supported using TANF funds 18
and those supported using private funds, the total amount of private funds 19
raised t hrough fundraising efforts, and additional needs or resources that 20
would assist the Division in maximizing private fundraising efforts. 21
SECTION 2.(c) Use. – Awards of programmatic funding shall be subject to all of 22
the following: 23
(1) A one-time award to an expecting mother during pregnancy in the amount of 24
one thousand five hundred dollars ($1,500) for needs determined by the 25
mother, including food, prenatal care, rent, and other needs. 26
(2) A monthly award for the maximum amount of time permitted under fe deral 27
law to qualify as nonrecurrent, short-term benefits, not to exceed the first year 28
after giving birth to the mother in the amount of five hundred dollars ($500.00) 29
per month for needs of the baby determined by the mother, including formula, 30
diapers, child care, and other needs. 31
(3) Awards utilizing TANF funds shall use, and be limited by, the means -based 32
test provided in subdivision (b)(3) of this section, other applicable federal 33
restrictions, and this section to ensure the funds are used solely to be nefit 34
eligible families. 35
(4) Awards utilizing funds raised by the nonprofit organization with which the 36
Division partners pursuant to subdivision (b)(4) of this section shall be used, 37
first, to augment awards for families that qualify for TANF funds under 38
subdivision (3) of this subsection to the maximum amount permitted by this 39
section and, thereafter, to beneficially impact as many other families as 40
possible; provided that, such awards shall not exceed the amounts and 41
purposes permitted in subdivisions (1) and (2) of this subsection. 42
SECTION 2.(d) G.S. 105-130.3 reads as rewritten: 43
"§ 105-130.3. Corporations. 44
A tax is imposed on the State net income of every C Corporation doing business in this State. 45
An S Corporation is not subject to the tax levied in this section. The tax is a percentage equal to 46
two and one -quarter percent (2.25%) of the taxpayer's State net income computed as 47
follows:income. 48
Taxable Years Beginning Tax 49
In 2025 2.25% 50
In 2026 2% 51
General Assembly Of North Carolina Session 2025
Senate Bill 583-First Edition Page 5
In 2028 1% 1
After 2029 0%." 2
SECTION 2.(e) Section 2(d) of this act is effective for taxable years beginning on 3
or after January 1, 2025. Section 2(a) through (c) of this act becomes effective July 1, 2025. The 4
remainder of this act is effective when it becomes law. 5