State raises some child care subsidy rates starting in October

The law directs the state to raise certain child care subsidy rates. The rates cover children in three-, four-, and five-star-rated child care centers and homes. For counties with rates below the state rate, provider payment rates are set at the statewide level. This provision applies only if Senate Bill 257 becomes law. The rate increases are to be paid from federal child care grant funds. The rate changes begin October 1, 2026. The next market rate study must report both 50th- and 75th-percentile statewide rates.

The law requires testing and recordkeeping at schools that accept scholarship students. The rules cover nonpublic schools that accept students whose tuition or fees are paid in whole or in part by scholarship grants. Testing covers eligible scholarship students in grade three and above, with different tests required for some grades. These provisions apply only if Senate Bill 257 becomes law. Schools must send test results to the Authority by July 15 each year. Those results are not public records. These requirements apply beginning with the 2026–2027 school year. Each year, the Authority must select at least four percent of these schools to check testing records.

The law redirects some state budget money to named projects and organizations. The listed funding changes involve North Carolina towns, state programs, and nonprofit organizations named in the act. The transfers and grant adjustments in sections 1.2, 3.5, 3.6, 4.6, 4.7, and 6.2 depend on Senate Bill 257 becoming law. The listed transfers include $4.5 million for Fair Bluff's riverwalk, $5.516 million shifted between state trails funds, and grants to named local governments and organizations. The trail and grant allocations identified in the text are for the 2026–2027 fiscal year.