North Carolina would fund foster care and child care services

The Department of Health and Human Services would receive $104 million annually from sports betting proceeds. The money would support services in North Carolina. The annual split would be $25 million for child welfare and foster care, $75 million for child care, and $4 million for gambling addiction education and treatment. Foster care money would cover required home inspections, required training for therapeutic foster parents, children's initial placement supplies, and emergency placements. Initial supply payments would be capped at $250 for children age five or younger and $500 for children age six or older. Children should help choose supplies when possible. If enacted, these provisions would take effect July 1, 2026, and apply to net proceeds credited on or after that date.

State health officials would use the $75 million child care share for subsidy payments and child care programs. The subsidy rate provision would cover children in child care centers and homes rated three, four, or five stars. Subsidy payment rates would reach the 75th percentile recommended by the 2023 Child Care Market Rate Study—a benchmark at or above roughly three-quarters of surveyed prices. The money would also support continuation of the Tri-Share Child-Care program and more providers, including a longer and broader in-home child care pilot. If enacted, these funding uses would take effect July 1, 2026, and apply to net proceeds credited on or after that date.

The state would set aside $250,000 annually from its General Fund for a secure website and mobile communication platform. Advance notices of hearings and county social services team meetings would reach people involved in child welfare cases, their lawyers, caregivers, and others named by the court. State health officials would send the money to the Office of Indigent Defense Services to hire an approved vendor. The state court office, Indigent Services of North Carolina, the program that represents children's interests in court, and the state social services division would agree to share needed data with the vendor. The platform would help lawyers and clients communicate, help people involved in cases communicate, and allow them to share case evidence. If enacted, funding would begin July 1, 2026, with a vendor contract due by October 1, 2026. The data-sharing duty would begin when the bill becomes law.

Lottery officials would have to follow the listed rules for dividing revenue. These rules would apply to the North Carolina State Lottery's revenue, expenses, and retailer payments. At least 50% of total annual revenue would go to prizes, and at least 38% would go to transfers required by G.S. 18C-164. Lottery operating expenses could use no more than 5% of total annual revenue. Payments to lottery retailers could use no more than 7% of the face value of tickets or shares. If enacted, the lottery provision would take effect July 1, 2026.

State child care officials would prepare a plan for a statewide minimum child care subsidy payment rate. The Division of Child Development and Early Education would submit its recommendation to legislative health and budget reviewers. This provision would require a recommended plan. It would not itself put a statewide minimum payment rate into effect. The planning duty would begin when the bill becomes law. The recommended plan would be due by December 1, 2026.