Bill would fund child care services and train lead teachers

The North Carolina Partnership for Children and community colleges would run a two-year pilot of free child care teacher academies. The academies would train people with no child care experience or education who want to work in the field. A separate provisional credential would be available to 16- and 17-year-olds who complete an approved course. The pilot would include Johnston and Wayne Counties and 10 more local partnerships, with at least one from each of four Smart Start regions. Partnerships would need to document a 25% local match to receive state funds. A local partnership may offer graduates a one-time stipend of at least $150. Graduates could receive a separate $500 state stipend after starting full-time work within three months of graduation and completing one year at the same licensed child care program within a consecutive 12-month period. The pilot would last two years. The state funds for tuition and stipends are for fiscal year 2026–2027.

The state would provide $15 million for mental and behavioral health services connected to child care. Services could support children, families, and staff in child care facilities and out-of-school programs. The North Carolina Partnership for Children would distribute the money to local partnerships for services in child care facilities and out-of-school programs, including on-site support. The money would add to, not replace, existing Smart Start behavioral health spending, and would remain available until spent. The special fund provisions would allow the Partnership to hold up to $5 million in cash beyond incurred expenses and require an annual financial status report. The $15 million is for fiscal year 2026–2027 and would remain available until spent. The annual financial report would be due by August 15.

Licensed child care centers could combine two workers’ qualifications to meet certain administrator requirements. These options would apply to licensed child care centers and people seeking the minimum North Carolina Early Childhood Administration Credential. One worker would need qualifying business coursework, education, or experience. The other would need a degree in early childhood education or child development, oversee the center’s curriculum and practices, and be on site for required hours. A person with qualifying business education or two years of verifiable administrative experience could earn the minimum administration credential without completing EDU 261 and EDU 262 or their equivalent. These provisions would take effect when the bill becomes law.

The Department of Insurance would study possible liability insurance for child care providers. The study would consider liability insurance for North Carolina child care providers, including coverage for sexual abuse and molestation. The study would examine possible program designs, insurance costs and availability, and public funding needs. It would not provide insurance coverage itself. The department would report its findings by June 1, 2027. The bill would provide $350,000 for the study in fiscal year 2026–2027.

The North Carolina Partnership for Children and local partnerships would use updated dollar thresholds for competitive bidding. The thresholds would apply to contracts for goods and services by the Partnership and all local partnerships. Contracts of $15,000 or less would follow the Partnership’s written policy. Contracts over $15,000 but under $25,000 would need three written quotes. Contracts of $25,000 or more but under $40,000 would require a request for proposals advertised through appropriate venues. Contracts of $40,000 or more would require a request for proposals and newspaper advertising. These bidding rules would take effect July 1, 2026, if the bill becomes law.