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Bill Summary · SB 1054

Summary of S.B. 1054 (Session 2025) – No Child Left Unfed

Purpose and intent

S.B. 1054 seeks to expand the federal Child and Adult Care Food Program (CACFP) to legally operating family, friend, and neighbor (FFN) child care providers in North Carolina. The bill recognizes FFN providers as a critical component of the child care landscape, particularly in low-income, rural, and underserved communities, and aims to improve child nutrition and reduce food insecurity by allowing these providers to participate in CACFP. The Legislature directs the Department of Health and Human Services (DHHS) to take feasible administrative actions to enable this expansion without a lengthy study period, while conforming to federal law and USDA requirements.

Key provisions

Creation of CACFP access for FFN providers

  • Adds a new Part 10D to Article 3 of Chapter 143B of the General Statutes.
  • Establishes definitions:
    • CACFP: Federal program administered in North Carolina by the Division of Child Development and Early Education (DCDEE), DHHS.
    • FFN provider: An individual legally operating child care in settings such as:
    • An operator-occupied private dwelling with two or fewer children in care.
    • The home of any child in care where all children are related and no more than two additional children are present.
    • Includes providers with licensure-exempt status or other exemptions recognized by the state.
  • Requirements for DHHS:
    • Take feasible administrative actions to extend CACFP access to FFN providers. Actions may include:
    • Identifying or designating sponsoring organizations to administer CACFP reimbursements for FFN providers.
    • Developing or modifying application procedures, training, and record-keeping suitable for FFN settings.
    • Applying for federal waivers, pilots, or flexibilities to support FFN participation.
    • Establishing simplified or tiered compliance mechanisms to reduce administrative burden while preserving program integrity.
  • Reporting obligations:
    • Annually by July 1, DHHS must report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division, covering:
    • Number of FFN providers enrolled or newly accessing CACFP.
    • Number of children served through FFN CACFP participation.
    • Any participation barriers and steps taken to address them.
    • Recommendations for further legislative or administrative action.
  • Participation is voluntary for FFN providers; no changes to licensure requirements or federal/cacfp regulations are imposed.

Implementation and reporting timeline

  • Implementation Plan: DHHS must publish an implementation plan within 180 days of the act becoming law, detailing the chosen administrative approach, timelines, rule changes, federal approvals, and resource needs.
  • Initial statutory report: The DCDEE must submit the initial implementation and participation reports within 12 months of enactment.

Funding and appropriations

2025-2026 fiscal year appropriations

  • Nonrecurring funds: $150,000 to develop the implementation plan, conduct outreach to potential sponsoring organizations, pilot FFN-appropriate processes, and pursue federal waivers or flexibilities.
  • Recurring funds: $500,000 to support ongoing administration, including staff for processing and outreach, sponsoring organization oversight, FFN provider support, data collection, and annual reporting.
  • Funding considerations:
    • Recurring funds continue until CACFP reimbursements cover ongoing costs, at which point the Administration must notify the Legislature and adjust funding downward.
    • Funds do not revert at year-end but remain available until expended or until June 30 of the second fiscal year after appropriation, whichever comes first.

Effective date

  • The act becomes effective upon becoming law.

Potential impact

  • Expanded access to CACFP for FFN providers could increase nutrition reimbursements for meals and snacks served to participating children.
  • May improve child nutrition outcomes and reduce food insecurity in communities relying on FFN care.
  • Administrative changes aim to minimize burden on small, informal providers while preserving program integrity.
  • Requires ongoing state oversight and reporting to monitor participation, barriers, and outcomes.

Compiled from official sources — confirm details with the bill’s official record.

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