NC Lawmakers Propose Shifting Voucher Money to Fund Childcare Subsidies
Legislation would move $390 million from school vouchers to tackle childcare crisis affecting over 700,000 North Carolina children.
RALEIGH, NORTH CAROLINA — North Carolina lawmakers have introduced legislation to redirect $390 million from the state’s school voucher program to address the childcare crisis affecting over 700,000 children statewide.
House Bill 1066, the “Child Care Stabilization & Affordability Act,” proposes moving funds from the Opportunity Scholarship Fund to the Division of Child Development and Early Education within the North Carolina Department of Health of Human Services. This comes as more than 15,000 families are on a waiting list for childcare subsidies as of December.
“My husband and I tried just about every arrangement that you can imagine — part-time work, job sharing, staying home, preschool, nanny care, nanny shares, and full-time daycare centers,” said Rep. Beth Helfrich (D-Mecklenburg), a primary sponsor of the bill and mother of five. “And we are among the lucky ones. Even so, it has been complicated.”
Massive Funding Shift Proposed
Republican lawmakers allocated $600 million to the Opportunity Scholarship Fund in the current fiscal year. The new legislation would transfer nearly two-thirds of that funding to childcare programs instead.
Helfrich said more than 700,000 children in North Carolina don’t have access to childcare nearby, forcing too many parents to choose between having a family and having a career. The legislation aims to reduce the state’s substantial waitlist for subsidized childcare services.
Public-Private Partnership Component
The bill would also permanently establish the Tri-Share Childcare Program, creating a public-private partnership to share childcare costs equally between employers, eligible employees, and the state. This initiative is designed to help stabilize childcare businesses across North Carolina.
“When families are struggling, it impacts us all,” said Rep. Brandon Lofton (D-Mecklenburg), another supporter of the legislation.
Under the proposed program, the North Carolina Partnership for Children would work with the Department of Health and Human Services to establish guidelines, including coordinating payments between employers and licensed childcare providers.
Addressing Statewide Crisis
The legislation represents a significant policy shift as lawmakers grapple with what sponsors describe as a childcare accessibility crisis affecting families throughout the state. The proposal would change how North Carolina allocates education-related funding by prioritizing early childhood care over private school vouchers.
The bill’s sponsors argue that the current system leaves too many working families without viable childcare options, creating barriers to employment and economic stability. By redirecting voucher funds, they believe the state can make a more immediate impact on families struggling to balance work and childcare responsibilities.
The legislation would need approval from both chambers of the General Assembly, where Republicans hold majorities, making passage uncertain given the proposed reduction to the voucher program they previously funded.
