AN ACT to appropriate funds for matching grants for counties and private employers to assist with capacity building in child care.

The General Assembly of North Carolina enacts:

SECTION 1.  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education (Division), the sum of twenty‑five million dollars ($25,000,000) in nonrecurring funds for each year of the 2025‑2027 fiscal biennium to be used for grants to counties and private employers that provide assistance with capacity building in child care in this State, including, but not limited to, (i) building construction, renovation, upfitting, or improvements, (ii) expansion costs, (iii) furniture and equipment, or (iv) playground installation. The Division shall award grants under this section pursuant to criteria established by the Division in accordance with federal law and guidance. These grants shall be one‑time awards to assist with child care initiatives as established by the Division. Counties or private employers seeking to receive funds under this section shall provide documentation of a twenty‑five percent (25%) match as a condition of receiving these State funds. A county or private employer receiving grant funds under this act may use up to nine percent (9%) of the State funds awarded for administrative costs.

SECTION 2.  This act becomes effective July 1, 2025.