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Bill Summary · HB 1160

Summary of HB 1160 (Session 2025, North Carolina)

Overview

  • Title: Reduce Parent Copays/Child Care Subsidy/Funds
  • Purpose: To reduce parent copayments for subsidized child care and provide state funding to support this reduction.
  • Sponsor: Representative Lofton (with co-sponsors Lindsey Prather, Brandon Lofton, Sarah Crawford, Julie von Haefen)
  • Status: Filed April 30, 2026

Key Provisions

1) Copayment Framework for Subsidized Child Care

  • The bill references a modification to the copayment structure for families required to share in the cost of subsidized child care.
  • It directs that, beginning October 1, 2026, family copayments are established at:
    • 10% of gross family income or
    • 7% of gross family income
    • The text as written appears to set these as the thresholds; the exact applicability may depend on specific program rules in the future.
  • When care is received at a blended rate:
    • The copayment shall be 83% of the full-time copayment.
  • For part-time care:
    • Copayments shall be 75% of the full-time copayment.

Note: The section references a rewrite of Section 9D.3(b) of S.L. 2023-134, indicating a modification of the copayment schedule starting October 1, 2026.

2) Funding Appropriation

  • The bill appropriates $25,000,000 in recurring General Fund money to the North Carolina Department of Health and Human Services (DHHS), Division of Child Development and Early Education.
  • Purpose: To reduce parent copayments for subsidized child care in accordance with Section 1.
  • Availability: Funds begin in the 2026-2027 fiscal year.

3) Effective Date

  • The act becomes effective July 1, 2026.

Who/What Is Affected

  • Families receiving subsidized child care (as administered by the Division of Child Development and Early Education within DHHS).
  • Child care providers and programs that participate in the state’s subsidized child care system, as copay structures influence enrollment and family eligibility.
  • DHHS, specifically the Division of Child Development and Early Education, which administers funding and copayment policies.

Timeline and Procedural Notes

  • October 1, 2026: Proposed effective date for the revised copayment percentages (10% or 7% of gross income; blended rate at 83% of full-time copayment; part-time at 75% of full-time copayment).
  • July 1, 2026: Act becomes effective.
  • Fiscal Year 2026-2027: First year of the $25 million recurring appropriation to support the copayment reductions.

Potential Impacts

  • Lower out-of-pocket costs for eligible families receiving subsidized child care, potentially improving access and affordability.
  • Increased demand for subsidized child care services if copayments decrease the financial barrier for families.
  • Budgetary impact on the General Fund due to the $25 million recurring appropriation beginning in FY 2026-2027.

Observation

  • The bill provides a specific funding mechanism and a defined copayment reduction framework, but some details (such as the precise interpretation and sequencing of the 10% vs. 7% thresholds) may require follow-up with the final enacted language or implementing regulations.

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

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