Von Haefen introduces North Carolina bill to boost child care subsidy rates

State Rep. Julie von Haefen has filed a bill that seeks to raise North Carolina’s child care subsidy payment rates and set a statewide minimum rate for qualifying child care facilities, according to the North Carolina State House.

Labeled as HB 1158 and filed on April 30 for the 2025 regular session, the measure is officially titled ‘Increase Market Rate/Rate Floor/Child Subsidy.’

Our overview below is based directly on the bill text and offers clarification of its key provisions.

The proposal calls for North Carolina’s child care subsidy payment rates to rise to the 75th percentile of the 2023 Child Care Market Rate Study for children in three-, four- and five-star centers starting July 1, 2026, with further automatic increases as new studies are conducted. A statewide minimum payment rate would apply to counties where local rates fall short, although small counties could use a higher local rate if the state rate would restrict low-income children’s access to care. The bill allocates $60 million in recurring General Fund appropriations and $20 million in recurring federal block grant support for increased payments, plus $160 million annually from the General Fund for the minimum rate floor. The law would take effect July 1, 2026.

Lindsey Prather, one of HB 1158’s four sponsors, introduced the highest number of bills (48) in the 2025 regular session.

The North Carolina legislative process involves multiple steps before a bill becomes law. A legislator first files a bill, which then goes to a committee for evaluation. The measure must pass three readings in both legislative chambers. If either chamber amends the bill after passage by the other, both chambers must agree on the revised version. The final bill goes to the governor, who can sign, veto or allow it to take effect without signature within 10 days (or 30 days if the General Assembly is not in session).

Explore additional legislation and measures here.

Von Haefen earned a BA from Ohio University in 1992 and a JD from Case Western Reserve University in 1995.

A Democrat, von Haefen has represented North Carolina’s 36th House district since 2019, succeeding Nelson Dollar.