The Child Promise Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 647

Short Title: The Child Promise Act. (Public)
Sponsors: Senators Garrett, Everitt, and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S647-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO FULFILL NO RTH CAROLINA'S PROMI SE TO ITS CHILDREN T HROUGH 2
COMPREHENSIVE INVEST MENT IN EARLY CHILDH OOD EDUCATION AND 3
CHILDCARE INFRASTRUCTURE, TO ENSURE THAT EVERY CHILD HAS ACCESS 4
TO QUALITY EARLY LEA RNING OPPORTUNITIES REGARDLESS OF 5
GEOGRAPHY OR FAMILY INCOME, TO STRENGTHEN THE EARLY CHILDHOOD 6
WORKFORCE, AND TO SUPPORT WORKING FAMILIES ACROSS THE STATE. 7
Whereas, the General Assembly hereby finds that investing in high -quality early 8
childhood education and childcare is essential to fulfilling our State's promise to the next 9
generation of North Carolinians; and 10
Whereas, this act establishes a framework to ensure every child has the opportunity 11
to reach their full potential through accessible, affordable, and high -quality early learning 12
experiences; Now, therefore, 13
The General Assembly of North Carolina enacts: 14
SECTION 1.(a) NC Pre-K Expansion. – There is appropriated from the General 15
Fund to the Department of Health and Human Services, Division of Child Development and 16
Early Education, the sum of ninety million two hundred fifty thousand dollars ($90,250,000) in 17
recurring funds for the 2025-2027 fiscal biennium to continue implementing the prekindergarten 18
program (NC Pre-K). These funds shall be used to increase the number of slots available in the 19
program to 10,000 over the next three years as follows: 3,000 in year one; 3,500 in year two; and 20
3,500 in year three. The NC Pre -K program shall serve children who are 4 years of age on or 21
before August 31 of the program year. I n determining eligibility, the Division shall establish 22
income eligibility requirements for the program at or below three hundred percent (300%) of the 23
federal poverty level. All sites established under this section shall achieve and maintain a 4 - or 24
5-star rating. The Division may use up to three percent (3%) of these funds each fiscal year of 25
the fiscal biennium for administrative expenses associated with implementing the provisions of 26
this section. 27
SECTION 1.(b) There is appropriated from the Economic D evelopment Reserve 28
Fund in the Department of Commerce and available ARPA funds to the Division of Child 29
Development and Early Education (DCDEE) the sum of six million eight hundred thousand 30
dollars ($6,800,000) in recurring funds for each year of the 2025 -2027 fiscal biennium to 31
administer a grant program for childcare facilities, new or existing, in census tracts where the 32
ratio of children under 5 to licensed child care providers exceeds 3:1. Childcare facilities with 33
20-49 children are eligible to receiv e a grant of up to one hundred fifty thousand dollars 34
($150,000); 50 -74 up to three hundred thousand dollars ($300,000); 75 or more up to five 35
hundred thousand dollars ($500,000); and family childcare homes up to fifty thousand dollars 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 647-First Edition
($50,000). Grant rec ipients shall provide a fifteen percent (15%) match and shall commit to 1
provide the services for at least five years. Of the funds appropriated in this act, the sum of three 2
hundred fifty thousand dollars ($350,000) in each fiscal year of the 2025 -2027 fiscal biennium 3
shall be used to employ one full-time program manager and two full-time specialists and the sum 4
of two hundred fifty thousand dollars ($250,000) may be used for technical assistance. DCDEE 5
shall consult with the Department of Commerce in administering the grant program. 6
SECTION 1.(c) The Division of Child Development and Early Education shall 7
coordinate with other appropriate divisions in the Department of Health and Human Services to 8
develop modernized inspections standards for childcare cent ers. Inspections shall be conducted 9
on a biannual basis for 4- and 5-star childcare centers and an electronic checklist system shall be 10
made available to providers. Inspection standards shall include reasonable space requirements 11
for both indoor and outdoo r and allow for expedited review for expansions by providers with 12
three or more years in good standing. DCDEE shall implement the modernized standards required 13
by this section over a period of eighteen months. DCDEE shall use funds available to it to 14
implement the provisions of this subsection. 15
SECTION 1.(d) There is appropriated from the General Fund to the Division of 16
Child Development and Early Education (DCDEE) the sum of nine million five hundred 17
sixty-two thousand five hundred dollars ($9,562,500) in recurring funds and from the North 18
Carolina Education Lottery Fund the sum of three million one hundred eighty -seven thousand 19
five hundred dollars ($3,187,500) for the 2025 -2027 fiscal biennium to administer a grant 20
program for after school programs in public schools where more than fifty percent (50%) of the 21
students receive free or reduced lunch. After school programs funded under this section shall 22
operate at a minimum of three hours a day five days a week, and shall provide academic support 23
and transportation home from the site. Students participating may be charged a fee, but it shall 24
be based on family income. DCDEE shall work in conjunction with the Department of Public 25
Instruction to establish the administrative guidelines for the grant program and in reporting on 26
attendance and improvements in academic outcomes. The report required by this section shall be 27
made to the Department of Health and Human Services, Department of Public Instruction, the 28
Joint Legislative Oversight Committee on Health and Hu man Services, the Joint Legislative 29
Oversight Committee on Education, and the Fiscal Research Division. Of the funds appropriated 30
in this section, the sum of four hundred thousand dollars ($400,000) in each fiscal year of the 31
2025-2027 fiscal biennium shall be used to employ three full-time program coordinators and one 32
full-time director for the program. 33
SECTION 2.(a) The maximum gross annual income for initial eligibility, adjusted 34
annually, for subsidized child care services shall be determined based on a percentage of the 35
federal poverty level as follows: 36
AGE INCOME PERCENTAGE LEVEL 37
0 – 5 300% 38
6 – 12 133% 39
Fees for families who are required to share in the cost of care are established based 40
on seven percent (7%) of gross family income. Priority populations under this section are foster 41
children, children with disabilities, and homeless children. 42
SECTION 2.(b) The Division of Child Development and Early Education shall use 43
available funds from the Child Care and Development Fund to implement the following scale for 44
determining childcare subsidy eligibility for the 2026-2027 fiscal year: 45
(1) 100-200% FPL – standard subsidy (7% family contribution) 46
(2) 201-220% FPL – 90% of standard subsidy (9% family contribution) 47
(3) 221-240% FPL – 80% of standard subsidy (11% family contribution) 48
(4) 241-260% FPL – 70% of standard subsidy (13% family contribution) 49
(5) 261-280% FPL – 60% of standard subsidy (15% family contribution) 50
(6) 281-300% FPL – 50% of standard subsidy (17% family contribution) 51
General Assembly Of North Carolina Session 2025
Senate Bill 647-First Edition Page 3
SECTION 2.(c) For each year of the 2025 -2027 fiscal biennium, a taxpayer with 1
children under six years of age and an income between 300-400% of the federal poverty level is 2
allowed a deduction of $1,500 for each qualifying child. For a child with disabilities, the 3
deduction shall be increased by $500; for an infant under twelve months, by $500; for a child in 4
a childcare desert, by $250. 5
SECTION 2.(d) There is appropriated from the General Fund to the Department of 6
Health and Human Services the sum of twenty -two million nine hundred thousand dollars 7
($22,900,000) in nonrecurring funds for the 2025 -2027 fiscal biennium to provide funds to 8
on-site childcare providers to construct new and renovate existing childcare facilities and to 9
provide childcare subsidies to employees of the providers. These funds shall be available only to 10
providers with 10 or more employees. 11
SECTION 3.(a) There is appropriated from the General Fund and the Child Care 12
and Development Fund to the Department of Health and Human Services, Division of Child 13
Development and Early Education, the sum of nine hundred fifty thousand dollars ($950,000) in 14
recurring funds for each fiscal year of the 2025 -2027 fiscal biennium to enhance the 15
compensation paid to educators in licensed childcare facilities. The supplement shall be provided 16
to educators who work a minimum of 30 hours each week and shall be allocated as follow: (i) 17
$2,000 annually for CDA credentials; $3,500 annually for an associate's degree; $5,000 annually 18
for a bachelor's degree; and $6,500 annually for a master's degree. The supplement shall be paid 19
on a biweekly basis. An additional supplement shall be paid for infant -toddler specialization in 20
the amount of $1,000 annually; bilingual certification $1,000 annually; and rural location $1,500 21
annually. 22
SECTION 3.(b) The Department of Health and Human Services, Division of Child 23
Development and Early Education, shall implement 5 -star rating system reforms by reducing 24
documentation required to be submitted on a biannual basis; incorporate classroom assessmen t 25
tools, such as CLASS and ERS; streamline staff qualification verifications; and increase subsidy 26
reimbursement differentials. 27
SECTION 3.(c) There is appropriated from the General Fund and the Child Care 28
and Development Fund to the Department of Health a nd Human Services, Division of Child 29
Development and Early Education, the sum of one million eight hundred thousand dollars 30
($1,800,000) in nonrecurring funds for the 2025 -2026 fiscal year to administer a mentorship 31
program for childcare providers seeking a star-level increase. Mentors shall have at least five or 32
more years' experience working in a 4- or 5-star childcare facility and shall hold at a minimum a 33
bachelor's degree. 34
SECTION 4.(a) There is appropriated from the General Fund and the Child Care 35
and Development Fund to the Department of Health and Human Services, Division of Child 36
Development and Early Education, the sum of two million eight hundred thousand dollars 37
($2,800,000) in nonrecurring funds for each fiscal year of the 2025 -2027 fiscal bien nium to 38
provide retention bonuses to full -time childcare facility employees in licensed facilities. An 39
employee with two years of service is eligible for a bonus of $1,000 each year; five years of 40
service $2,500 each year; 10 years of service $5,000 each y ear; 15 years of service $7,000 each 41
year; 20 years of service $10,000 each year. 42
SECTION 4.(b) There is appropriated from the General Fund and the Child Care 43
and Development Fund to the Department of Health and Human Services, Division of Child 44
Development and Early Education, the sum of two million eight hundred thousand dollars 45
($2,800,000) in nonrecurring funds for each fiscal year of the 2025 -2027 fiscal biennium to 46
administer a professional development program for childcare workers. The program shall include 47
providing career advise to childcare workers, professional development programs, leadership 48
training for directors, and an online tracking and verification system. 49
SECTION 4.(c) There is appropriated from the General Fund and the Child Care 50
and Development Fund to the Department of Health and Human Services, Division of Child 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 647-First Edition
Development and Early Education, the sum of nine million dollars ($9,000,000) in recurring 1
funds for each fiscal year of the 2025 -2027 fiscal biennium to expand T.E.A.C.H. sc holarships. 2
The amount of the scholarships shall be as follows: for CDA, 80% of costs up to $3,000; 3
associate's degree, 80% of costs up to $4,500; and bachelor's degree, 80% of costs up to $6,000. 4
Scholarship recipients shall commit to continued employment in a childcare facility for at least 5
one year after completing their degree. 6
SECTION 4.(d) The Department of Health and Human Services, Division of Child 7
Development and Early Education, shall develop and administer an apprenticeship program for 8
individuals desiring to work in the childcare industry. The program shall provide for at least 9
2,000 hours on hand -on experience in a childcare facility, at least 144 hours of technical 10
instruction on childcare; a starting wage of at least $13 per hour; and the apprenticeship shall last 11
between 12-18 months. This program shall be funded by using federal apprenticeship funds, State 12
workforce development funds, and General Fund monies. 13
SECTION 5.(a) There is appropriated from the General Fund to the Departme nt of 14
Health and Human Services, Division of Child Development and Early Education, the sum of 15
five million dollars ($5,000,000) in recurring funds for each fiscal year of the 2025 -2027 fiscal 16
biennium to enter into public-private partnerships with childcare facility owners to construct and 17
renovate childcare facilities, purchase equipment and materials, provide professional 18
development initiatives, and provide quality enhancement projects. A facility owner shall 19
contribute a minimum of $25,000 for each project and the State a maximum of $500,000 for each 20
project. 21
SECTION 5.(b) The Department of Health and Human Services, Division of Child 22
Development and Early Education, in collaboration with the Department of Public Instruction 23
shall administer a grant program to expand school-based care facilities. Eligible projects include 24
elementary school classroom conversions, installing modular units on school property, and 25
creating shared service arrangements with existing service providers. 26
SECTION 5.(c) Using funds from the Child Care and Development Fund and funds 27
appropriated from the General Fund for this purpose, the Department of Health and Human 28
Services, Division of Child Development and Early Education, shall establish 12 regional 29
hub-and-spoke support net works for family childcare. The networks shall share administrative 30
services such as billing and enrollment, substitute pool management, bulk purchasing, 31
professional development, business coaching and support, and quality improvement assistance. 32
This program shall be funded by using available funds from Child Care and Development Fund 33
and funds from the General Fund appropriated for this purpose. 34
SECTION 5.(d) The Department of Health and Human Services, Division of Child 35
Development and Early Education, shall develop and administer a universal Pre-K pilot program. 36
The pilot program shall be conducted in 5 counties selected by the Division as long as they meet 37
the following: one urban with a population of less than 500,000; two suburban with a population 38
of 100,000 or more but less than 500,000; and two rural counties with a population of less than 39
100,000. The pilot program shall provide for universal eligibility of all 4 years olds in the State; 40
a mixed delivery system of public schools, Head Start, and p rivate childcare centers; a full day 41
of 6 hours or more required; standardized quality requirements across setting; and a common 42
enrollment system. The pilot program shall be funded with funds from the General Funds with a 43
match of fifteen percent (15%) pr ovided by the counties in which the pilot program will be 44
conducted. 45
SECTION 6.(a) The Department of Health and Human Services, Division of Child 46
Development and Early Education, shall set aside twenty percent (20%) of the additional subsidy 47
dollars provided in this act to be given to parents who have infants and toddlers in a childcare 48
facility. Funds shall also be used to fund one family engagement navigator in each county to 49
assist with enrollment and to provide for a comprehensive database of all ECE p rofessionals. 50
This program shall be funded from CCDF funds and the General Fund. 51
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Senate Bill 647-First Edition Page 5
SECTION 6.(b) The Department of Health and Human Services, Division of Child 1
Development and Early Education, shall implement a program to assist businesses providing 2
childcare. The program shall include (i) fast tracking licensure with a 14-day review for employer 3
sponsored centers; tax credits of at least $1,000 per employee for providing flexible work hours 4
(at least 20% of the workforce must participate); and regional childcare coordinators. 5
SECTION 7. This act becomes effective July 1, 2025. 6