North Carolina Invests in Childcare While Addressing Decline in Family Childcare Homes
North Carolina is making significant investments in childcare and early education, with the state budget allocating an additional $160 million to the childcare subsidy program, bringing annual spending to over $650 million. This investment establishes the state's first reimbursement floor and updates subsidy reimbursement to 2023 market rates, expected to increase reimbursement for 96% of providers. However, despite these new investments, the state faces a challenge in sustaining licensed family childcare homes, which are small programs operated in providers' residences. The number of these homes has drastically declined from approximately 4,500 in 2005 to just over 1,000 today, a trend that accelerated after federal relief funding ended in March 2025. The North Carolina Task Force on Child Care and Early Education is exploring ways to prevent these programs from disappearing, as they are crucial for caring for infants and toddlers, serving families with non-traditional work hours, and operating in rural c... 
