What's Happening?
Governor Josh Stein has announced an $11.3 million expansion of the Child Care WAGE$ salary supplement program over three years. This initiative aims to support the early education workforce in 39 North Carolina counties significantly impacted by Hurricane
Helene. The Child Care WAGE$ Program, established in 1994, provides education-based, biannual salary supplements directly to low-paid family child care providers, early childhood teachers, directors, and other staff working with children from birth through age 5 in licensed facilities. The program is designed to address low base wages and high turnover in the child care industry by rewarding educators who advance their formal early childhood education. Funding for this expansion comes from a $75 million award to the state from the Administration for Children & Families’ Office of Child Care through the American Relief Act’s Disaster Supplemental Funds for Child Care. In partnership with Early Years Inc., the program will be established in Ashe, Madison, and Watauga counties, which were not previously served, and will provide an additional annual incentive of approximately $1,350 per participant in the other 36 Helene-affected counties already offering WAGE$.
Why It's Important?
This expansion is crucial for stabilizing North Carolina's early childhood workforce, which has faced decades of crisis, exacerbated by the COVID-19 pandemic and recent natural disasters like Hurricane Helene. By providing direct financial supplements, the program helps retain qualified educators, ensuring the availability of high-quality, affordable early childhood care and education. This, in turn, supports children's healthy development and learning, enables parents to work, and keeps businesses running. The U.S. Chamber Foundation recognizes WAGE$ as an innovative compensation strategy, and data from North Carolina shows a significantly lower turnover rate among WAGE$ participants (14% in 2026) compared to the state average (38% in 2023). A stable early childhood workforce is considered essential for both the healthcare infrastructure and the economy, as it provides critical support for the youngest North Carolinians during challenging recovery processes.
What's Next?
For the three expansion counties—Ashe, Madison, and Watauga—applications for salary supplements will open in November 2026, with supplement checks expected to be widely available by spring 2027 for eligible participants. In the other 36 Helene-affected counties, annual incentives for individuals are anticipated to begin in January 2027. Additionally, the North Carolina Department of Health and Human Services (NCDHHS) is requesting child care facilities in disaster-impacted counties to update and complete their Disaster Impact Reports for Tropical Storm Debby and Hurricane Helene. Reimbursements for these reports began on October 30, 2026, and will continue on a rolling basis. State funding remains available to licensed child care operators in Helene-impacted counties through the North Carolina Partnership for Children.
Beyond the Headlines
The expansion of the Child Care WAGE$ program highlights a broader recognition of early childhood educators as essential workers whose compensation directly impacts the quality and stability of child care services. This initiative addresses the systemic issue of low wages in the early education sector, which often leads to high turnover and a shortage of qualified staff. By investing in direct salary supplements, North Carolina is not only responding to immediate disaster recovery needs but also implementing a long-term strategy to strengthen its early childhood infrastructure. This approach acknowledges that teacher education, stability, and compensation are key factors in improving child care quality, ultimately benefiting children, families, and the state's economic resilience. The program serves as a model for how states can leverage federal disaster relief funds to address underlying workforce challenges in critical sectors.
