Bill
SB 281
NC SB 281 uses a one-time $50M General Fund to extend the compensation grants in the child care stabilization program through Q4 2024–25, preserving staff pay and avoiding closures
Status
- Bill No.: SB 281
- Title: Essential Relief for Child Care Act
- Introduced: February 5, 2025
- Current status (per provided info): Passed first reading
- Subject areas: Appropriations; Budgeting; Day care; DHHS; Funding; Grants; Public social services
Purpose / Intent
- To provide immediate, one‑time financial support to stabilize child care providers by continuing the compensation‑grant component of existing child care stabilization grants. The bill aims to preserve provider capacity, support staff compensation, and limit provider closures that would reduce access to child care and harm local labor markets.
Key provisions
- Appropriation: $50,000,000 (nonrecurring) from the State General Fund to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (DCDEE).
- Use of funds: Specifically designated to continue the compensation‑grants portion of the child care stabilization grants program.
- Timeframe: Funds cover the 2024–2025 fiscal year; the Division must continue the compensation grants through the fourth quarter at the same level as in FY 2024–25.
- Administration: DCDEE is the implementing agency and responsible for distributing the grants consistent with the bill’s direction.
- Effective date: The act takes effect upon becoming law.
Who is affected
- Child care providers: Licensed centers and family child care homes that participate in the stabilization grant program and receive the compensation grant portion — intended to help maintain payroll and staff retention.
- Early childhood workforce: Teachers and staff who may receive improved/continued compensation through provider grants.
- Families and employers: Indirect beneficiaries through preserved child care access and reduced risk of provider closures that can affect workforce participation.
- DHHS / DCDEE: Responsible for disbursing funds and overseeing compliance.
Fiscal/timeline notes and likely impacts
- Fiscal: $50 million is a one‑time (nonrecurring) General Fund appropriation for FY 2024–25. It does not create an ongoing funding commitment.
- Short‑term impact: Helps prevent near‑term provider closures and supports compensation for child care workers during the covered quarter.
- Medium/long‑term considerations: Because the funding is nonrecurring and limited to continuation through the fourth quarter at current levels, providers and policymakers may face a funding cliff unless additional, sustained appropriations or program changes are enacted in subsequent budgets.
- Administrative: DCDEE will need to apply existing program rules or any implementing guidance to allocate funds quickly and equitably.
Contextual note
- The bill frames child care stabilization as an economic priority, citing risks that program reductions could lead to significant provider closures and workforce impacts. It targets the compensation component specifically (rather than other stabilization components like operational grants), reflecting a policy emphasis on workforce retention.
Compiled from official sources — confirm details with the bill’s official record.
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