NC Task Force on Child Care and Early Education, State Leaders Commend Child Care and Early Education Investments in State Budget

Leaders from the North Carolina Task Force on Child Care and Early Education, state agencies, and nonprofit organizations applaud recent public investments to improve child care and early education access, affordability, and quality across North Carolina.

"Accessing quality, affordable, child care shouldn't depend on your ZIP code. This budget helps level the playing field so providers in every part of North Carolina have a better opportunity to serve families and keep their doors open. That's good for families and good for our state's economy," said Task Force Co-Chairs Lieutenant Governor Rachel Hunt and Senator Jim Burgin. "We're grateful to Governor Stein, leaders in the General Assembly, and everyone who came together to make this progress possible."

"Our First in Opportunity strategic economic development plan recognizes that a strong economy depends on strong families and a future-ready workforce," said N.C. Department of Commerce Secretary Lee Lilley. "By investing in child care and early education, North Carolina is strengthening the foundation that helps parents participate in the workforce today while preparing the next generation for tomorrow's opportunities."

"I am grateful for the historic investment in child care access and provider stability in North Carolina," said NC Health and Human Services Secretary Dev Sangvai. "These efforts support child care providers across the state, particularly in rural communities, so more families can access the affordable, high-quality care they need to work and thrive."

Earlier this month, Governor Josh Stein signed into law a new state budget that directs investment in various child care policies analyzed and recommended by the Task Force on Child Care and Early Education, including:

• Improving reimbursement rates for child care providers who participate in North Carolina's Child Care Subsidy Program and setting a statewide floor rate for child care subsidy reimbursements (about $101 million)
• New child care and early education initiatives, including the continuation of a program to help increase the supply of family child care homes in North Carolina as well as technology improvements for the Division ($5.8 million)
• Child Care Academies - rapid career training for aspiring early childhood teachers - in collaboration among North Carolina Community Colleges and local Partnerships for Children ($1.5 million)

Setting a Child Care Subsidy Program reimbursement rate floor is expected to help child care providers who deliver child care and early education services on thin margins stabilize their businesses and retain more revenue, which they can use to improve pay for child care teachers, deliver non-salary employee benefits, and even serve more students. Policy experts believe North Carolina is the first state in the nation to create a statewide floor rate for child care subsidy reimbursements.

In June 2025, the North Carolina Task Force on Child Care and Early Education selected policy recommendations to help parents of young children across North Carolina access and afford high-quality child care and early education. Setting a floor for child care subsidy reimbursement rates is a primary recommendation of the Task Force and has been a priority for early childhood education providers and advocates in recent years.

"North Carolina's new budget makes meaningful investments in young children and families by strengthening key early childhood supports across the state," said Task Force member Amy Cubbage, President of the North Carolina Partnership for Children. "Investments in child care academies, increased Child Care Subsidy Program reimbursement rates, expanded support for Dolly Parton's Imagination Library, and enhanced behavioral and mental health services will help more children get the strong start they deserve. Smart Start thanks Governor Stein, leaders in the General Assembly, and our partners across the early childhood community for advancing these investments."

"With the $100.8 million investment in our state's early education system to establish a statewide subsidy floor, North Carolina once again achieves a new 'first.' This transformative investment will help make child care more affordable and accessible, giving children the opportunity to access key learning opportunities that support a lifetime of success," said Task Force member Erica Palmer Smith, Executive Director of NC Child. "This investment helps align subsidies closer to the true cost of care while helping child care operators keep the lights on and classrooms open. We are grateful to Governor Stein and the North Carolina General Assembly for recognizing the importance of early learning opportunities and taking action to improve the lives of North Carolina's children."

"On behalf of the North Carolina Early Childhood Foundation, I extend my gratitude to Governor Stein and the General Assembly for the new and increased support for the young children and families of North Carolina. These investments represent an important step toward improving the financial stability of child care programs, helping build the workforce needed to meet the growing demand for high-quality child care and increasing access for working families," said Task Force member Theresa Stacker, Executive Director of the North Carolina Early Childhood Foundation. "We are grateful for these important steps forward and look forward to working with policymakers and partners to build on this momentum in the years ahead."

"The creation of a statewide child care subsidy reimbursement rate floor offers promise to finally address our state's worsening child care crisis, which has long been undermining the economic security of families, the success of businesses, and the fiscal health of our state," said Task Force member Beth Messersmith, North Carolina Director of MomsRising. "The establishment of a floor will help stabilize our state's critical child care infrastructure, especially in rural communities that have historically received lower reimbursement rates. MomsRising and our more than 47,000 NC members applaud this investment and the bipartisan recognition that child care is essential infrastructure for North Carolina's families and economy."

WHAT NC CHILD CARE AND EARLY EDUCATION LEADERS ARE SAYING

"The recent budget investments in child care demonstrate that our elected leaders are fully aware of and support accessible, affordable and quality child care for North Carolina's families. As confirmed by the recent Status of Women in NC report, North Carolina's child care costs are creating significant financial burdens for many families in our state which also impacts the labor force," saidAnnette Taylor, Chair of the NC Council for Women. "The Council has long advocated for additional investments in child care and this is a great first step."

"We have exciting news to celebrate: North Carolina's new state budget signed by Governor Stein on Tuesday includes a statewide child care subsidy reimbursement rate floor-a major step forward for children, families, child care providers, and local economies across our state. We thank the legislative leadership - including champions from western NC - for prioritizing this in the budget," said Greg Borom, Director of the Western North Carolina Early Childhood Coalition. "We championed this policy because we know what it means for our mountain counties: stronger support for child care programs, more stability for providers, and a better chance that working families can find and keep the care they need. This new rate floor will help increase subsidy reimbursement rates and keep child care programs open for business from the mountains to the coast."

"The NC Early Education Coalition offers our gratitude to Governor Stein and his staff for North Carolina's 2026 state budget that includes policy and allocations for our state's child care programs. Specifically, we are thankful for changes to the Child Care Subsidy Program and the establishment of a statewide floor for market rates," said Sheila Hoyle, Interim Director of the NC Early Education Coalition. "For many years this policy has been discussed and hoped for by our child care community. With the establishment of the Governor's Child Care and Early Education Task Force and the appointment of bi-partisan leadership, we have witnessed North Carolina public policy leaders work together to develop these meaningful solutions for NC's child care crisis."

ABOUT THE NC TASK FORCE ON CHILD CARE AND EARLY EDUCATION

The North Carolina Task Force on Child Care and Early Education was established by Governor Stein through Executive Order No. 10 in March 2025. Its purpose is to expand the supply of accessible, affordable, high-quality child care and early education options for working families in North Carolina. Led by Lieutenant Governor Rachel Hunt and Senator Jim Burgin, the Task Force includes bipartisan members of the North Carolina General Assembly, leaders from state agencies, business executives, and leaders of child-focused nonprofit organizations. It is housed at the North Carolina Department of Commerce.