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Bill

HB 507

The Children First Act.

2025-2026 Session Introduced by Eric Ager and 32 co-sponsors

Expands affordable, high-quality child care in NC by boosting subsidies, funding new facilities in underserved areas, and adding employer incentives and safety protections.

Passed 1st Reading
0
WeVote Research Nonpartisan
Bill Summary · HB 507

Summary — HB 507: "The Children First Act"

Status: Passed first reading; introduced November 12, 2024 (filed session 2025)
Primary sponsor: Rep. Prather (with multiple co-sponsors)
Jurisdiction: North Carolina

Main purpose

The Children First Act is a comprehensive early‑childhood and child‑safety package that aims to (1) expand affordable, high‑quality child care access for North Carolina families; (2) grow and professionalize the child‑care workforce; (3) strengthen child health and safety protections (including digital privacy, substance exposure, and firearm safety); (4) create incentives for employer‑sponsored child care; and (5) establish new grant and financing tools to reduce child‑care deserts.

Key provisions and changes

Note: Portions of the bill text were truncated in the provided materials; the summary highlights provisions shown in the available text.

  • Child care subsidy expansion

    • Appropriates $50,000,000 recurring per year (General Fund) to the NC Department of Health and Human Services, Division of Child Development and Early Education (DCDEE) for FY2026–FY27.
    • Raises initial eligibility maximum gross annual income to 85% of State Median Income (SMI).
    • Revises family copayment sliding scale (starts at 200% of the federal poverty level up to 85% SMI).
    • Increases subsidy payment rates to reflect the true cost of quality care based on the 2023 NC child‑care market rate survey.
    • Effective date for these appropriations: July 1, 2025.

  • Child care facility grants

    • Appropriates $15,000,000 nonrecurring per year (General Fund) for FY2026–FY27 to DCDEE to provide start‑up grants for new child‑care facilities in rural/underserved areas (targeting child‑care deserts, high‑poverty/low‑performing districts).
    • DCDEE must report on grants (due December 1, 2026 and December 1, 2027) including amounts, grantees, facility locations, and operational status.

  • Child Care Facilities Investment Fund

    • Establishes a nonreverting revolving Child Care Facilities Investment Fund in the Department of Commerce to support facility financing (details in truncated text).

  • Workforce, licensing, employer incentives, and safety

    • Directs workforce development and licensing reform to address workforce shortages (details truncated).
    • Creates incentives for employer‑provided child care (an employer child‑care credit is referenced in the bill purpose; specific mechanics not shown).
    • Includes measures to strengthen child health/safety: digital privacy protections, substance exposure prevention, firearm safe‑storage and safety education, early childhood mental health, infant and fetal mortality prevention, and supports for youth homelessness and food insecurity (the bill frames these as priorities; many implementation details are not in the excerpt).

  • Governance and planning

    • Establishes a Child Care Innovation Task Force (referenced) to improve the child‑care landscape (details truncated).

Who is affected

  • Families with young children — expanded subsidy eligibility and lower out‑of‑pocket costs for low‑ and moderate‑income households.
  • Child‑care providers and prospective new facilities — increased subsidy rates, start‑up grant eligibility, and financing through a revolving fund.
  • Child‑care workforce — workforce development, training, and licensing reforms intended to recruit and retain staff.
  • Employers — potential tax/credit incentives to provide on‑site or sponsored child care.
  • State agencies (DCDEE, Dept. of Commerce) — responsible for administering funds, grants, reporting, and program changes.

Fiscal and procedural notes

  • Explicit appropriations in the text provided: $50 million recurring per year and $15 million nonrecurring per year for each year of the 2025–2027 biennium (implementation beginning July 1, 2025 for the subsidy provision).
  • DCDEE reporting deadlines: Dec. 1, 2026 and Dec. 1, 2027 (on grants).
  • Many program details (e.g., employer credit mechanics, full scope of workforce reforms, investment fund rules) are truncated in the supplied materials; the bill text should be consulted for full provisions.
  • Procedural status: Passed first reading (per docket); referred to Rules/Calendars as it advances through the legislative process.

Limitations / next steps

Because substantial portions of the bill text were truncated in the materials provided, readers should consult the full enrolled/committee version of HB 507 for complete statutory language, administrative rulemaking directives, eligibility criteria, and any fiscal‑note updates that accompany the final bill.

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

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