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  • Writer's picturePat Brand

North Carolina Releases $67.5 Million in Final Child Care Stabilization Funds, Faces Growing Crisis in Early Education



This week, the North Carolina Department of Health and Human Services (NCDHHS) announced the release of $67.5 million in stopgap funding to stabilize the state's early childhood education and child care centers. This payment marks the final installment of the Child Care Stabilization Grants, which were introduced in 2021 to help keep child care centers operational and improve pay for early childhood educators. The $67.5 million was provided by the Republican-led General Assembly earlier this year to extend these grants through December 31, 2024, though at a reduced funding level.


Governor Roy Cooper emphasized the importance of early childhood education and child care in North Carolina, noting that the programs are vital for children’s development, parental employment, and the overall functioning of businesses. He warned that the state faces challenges in maintaining these services and called for additional legislative investments to prevent the closure of child care centers, educator shortages, and increased costs for parents.


Currently, the Child Care Stabilization Grants support 3,763 early childhood education and child care facilities across North Carolina. A statewide survey suggests that nearly one-third of these centers are at risk of closing once federal funding ends. Without further financial support, many centers may struggle to retain quality teachers, hire new staff, and may be forced to raise fees.


Over the past year, North Carolina has experienced a net loss of 116 child care centers. The rising costs of child care, particularly infant care, now exceed the cost of in-state tuition at a four-year public college by 28%.


Governor Cooper has declared 2024 the Year of Public Schools and has been advocating for increased investments in both K-12 education and early childhood programs during visits to schools across the state. He has also expressed opposition to state spending on vouchers for private schools, urging a focus on fully funding public education.

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