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Child care in Gov. Stein's 'critical needs' budget

'An education crisis that hurts each of us'

Early Bird readers, hello again. Newcomers, welcome! If you were forwarded this email, you can sign up here to receive it every two weeks, and join our conversation on issues facing North Carolina’s young children and those who support them. If you’re already a subscriber, please help us reach more people by sharing this with your friends and coworkers interested in early childhood education. 

A student at A Safe Place Child Enrichment Center explores an outdoor kitchen. Liz Bell/EdNC

I’ve been in my happy place this week — on the road and in classrooms. I’ve met extraordinary, committed early educators and bright, silly children. As always, thank you for welcoming me into your communities.

Back in Raleigh, things are ramping up ahead of this year’s short legislative session. In case you missed it, here’s what Gov. Josh Stein’s Task Force on Child Care and Early Education is recommending the state do to confront the lack of affordable, high-quality early childhood education.

Though there are several broad ideas in the the task force’s report, released in January, it does not include specific funding or policy asks for this legislative session. Last week, we saw the first specific proposal ahead of the session in Stein’s “critical needs budget.” This proposal is meant to “fill the gap” until the lawmakers pass a new comprehensive budget, he said.

The budget called for $20 million for the child care subsidy program, which helps low-income working families afford care. This funding would update the per-child rate participating child care programs receive to a market rate survey from 2023. Updating those rates would cost $80 million for a full year, according to the budget proposal.

Meanwhile, Candace Witherspoon, director of the Division of Child Development and Early Education, updated legislators on the state’s child care landscape, which she said has seen a net loss of 13% of licensed programs since 2019.

“While we understand the foundational impact of early education to the state’s well-being, the early education industry is built on an unsustainable business model, which result(s) in an education crisis that hurts each of us,” Witherspoon said.

Witherspoon said the subsidy program has served 15% fewer children since 2019, and that the waitlist for the program has grown sevenfold since mid-2024.

Advocates in recent years have fought for subsidy funding to raise rates for participating programs instead of funding to expand the program to new families at current rates. The current rates cover about half of the true cost of providing care, Witherspoon said.

“Our parents can’t afford to make up the difference,” she said.

We’ll be bringing you coverage of the most pressing early childhood policy issues leading up to the session, and legislative updates once the session starts. Stay tuned!

More from EdNC on early childhood

State early childhood director updates legislators on child care loss and large waitlist growth for subsidies

North Carolina has experienced a 13% net loss of child care programs since 2019, with record lows of licensed care expected in the next year, said Candace Witherspoon, director of the Division of Child Development and Early Education (DCDEE) to...

For child care providers impacted by Helene, what to know about federal funds on the way

Another $75.8 million is on the way to North Carolina child care programs from the U.S. Department of Health and Human Services to help them recover from Hurricane Helene and Tropical Storm Debby. More than 230 child care programs were...

Gov. Stein's $1.4 billion budget proposal includes funds for Medicaid, 5.8% average raise for teachers

Gov. Josh Stein announced a “critical needs budget” proposal on Monday, calling, among other things, for raises for teachers and state employees, $319 million to fully fund Medicaid after federal funding cuts, and funds to raise the state’s subsidy reimbursement...

Chirp! Chirp! Opportunities to share your voice

Do you operate a waitlist for families in need of help paying for child care? Are you on a waitlist to receive child care subsidies? Respond to this email and let us know. We’d love to hear your experience.

The big picture for little kids

Taking flight! Opportunities to spread your wings

Webinar on young child homelessness - From The Young Child Homelessness Outreach Project

April 29 | 1 p.m.

This webinar will outline the “HOPE framework,” a national initiative that stands for, “Healthy Outcomes from Positive Experiences,” and discuss the importance of high-quality experiences, including in child care, for children and families experiencing homelessness.

2026 Triangle Child Care Awards - From Early Years

March 27 | 8-11 a.m.

From the host: “Every two years, Early Years gathers community leaders, child care providers and advocates to celebrate the dedicated individuals working to ensure the Triangle’s children receive the highest quality of early care and education.

Join us in recognizing a group of dedicated professionals who work each day to guarantee our children have the best possible start in life as we present the Early Years Public Service Award, the Dorothy B. Graham Early Childhood Leadership Award and the Mary Y. Bridgers Early Childhood Teacher Award.”

Liz Bell

Liz Bell is the early childhood reporter for EducationNC.