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S594 • 2025

Care Center Cost Support Act.

Care Center Cost Support Act.

Children
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Chaudhuri, Chitlik, Waddell
Last action
2025-03-26
Official status
Re-ref Com On Appropriations/Base Budget
Effective date
2025-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Care Center Cost Support Act.

Care Center Cost Support Act.

What This Bill Does

  • Care Center Cost Support Act.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-26 Senate

    Re-ref Com On Appropriations/Base Budget

  2. 2025-03-26 Senate

    Withdrawn From Com

  3. 2025-03-26 Senate

    Ref To Com On Rules and Operations of the Senate

  4. 2025-03-26 Senate

    Passed 1st Reading

  5. 2025-03-25 Senate

    Filed

Official Summary Text

Care Center Cost Support Act.

Current Bill Text

Read the full stored bill text 
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 594

Short Title: Care Center Cost Support Act. (Public)
Sponsors: Senators Chaudhuri and Chitlik (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S594-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO INCREASE C HILD CARE SUBSIDY RA TES TO THOSE IN THE 2023 2
MARKET RATE STUDY, T O ESTABLISH A FLOOR FOR CHILD CARE SUBSI DY 3
RATES, AND TO APPROPRIATE FUNDS FOR THOSE PURPOSES. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. Beginning October 1, 2025, the Department of Health and Human 6
Services, Division of Child Development and Early Education, shall increase the child care 7
subsidy market rates to the seventy -fifth percentile as recommended by the 2023 Child Care 8
Market Rate Study for children in three-, four-, and five-star-rated child care centers and homes. 9
SECTION 2. Beginning October 1, 2025, provisions of payment rates for child care 10
providers in counties that have a county rate below the State rate for cent er-based and 11
home-based care are as follows: 12
(1) Except as applicable in subdivision (2) of this subsection, payment rates shall 13
be set at the seventy -fifth percentile statewide market rate as recommended 14
by the 2023 Child Care Market Rate Study for childr en birth through 5 years 15
of age for licensed child care centers and homes. 16
(2) If it can be demonstrated that the application of the statewide rate to a county 17
with fewer than 50 children in each age group is lower than the county market 18
rate and would inh ibit the ability of the county to purchase child care for 19
low-income children, then the county market rate may be applied. 20
SECTION 3. There is appropriated from the General Fund to the Department of 21
Health and Human Services, Division of Child Development and Early Education, the sum of 22
one hundred ten million dollars ($110,000,000) in recurring funds for each year of the 2025-2027 23
fiscal biennium to implement the market rate increases and to establish a floor for child care 24
subsidy rates as set forth in Sections 1 and 2 of this act. 25
SECTION 4. This act becomes effective July 1, 2025. 26