A Democratic-backed bill would shift $390 million from the state’s Opportunity Scholarship voucher program to reduce a childcare subsidy waitlist affecting more than 15,000 families. Another proposal from Republican Sen. Jim Burgin would dedicate $75 million annually from gambling tax revenue to stabilize childcare funding.
NC lawmakers propose using voucher funds, sports betting proceeds for childcare subsidies
by Clayton Henkel, NC Newsline
May 6, 2026
North Carolina Rep. Beth Helfrich (D-Mecklenburg), a mother of five, recalls when three of her children were under age 5, and finding affordable childcare seemed impossible.
“My husband and I tried just about every arrangement that you can imagine — part-time work, job sharing, staying home, preschool, nanny care, nanny shares, and full-time daycare centers,” said Helfrich. “And we are among the lucky ones. Even so, it has been complicated.”
For far too many families in North Carolina, childcare is not just complicated, it’s out of reach.
Helfrich said more than 700,000 children in North Carolina don’t have access to childcare nearby, and too many parents are being forced to choose between having a family and having a career.
Helfrich is a primary sponsor of House Bill 1066, titled the “Child Care Stabilization & Affordability Act.” It would use some of the money currently earmarked for school vouchers to reduce the state’s waitlist for subsidized childcare instead.
Republican lawmakers put $600 million into the Opportunity Scholarship Fund in the current fiscal year. H1066 would move $390 million of that to the Division of Child Development and Early Education within the North Carolina Department of Health of Human Services.
As of last December, North Carolina had over 15,000 families on the wait list for childcare subsidies, according to Rep. Brandon Lofton (D-Mecklenburg).
“When families are struggling, it impacts us all,” said Lofton.
Lofton said the bill would also permanently establish the Tri-Share Childcare Program, creating a public/private partnership to share the cost of childcare equally between employers, eligible employees, and the state to help stabilize childcare businesses across North Carolina.
The North Carolina Partnership for Children would work with DHHS to establish guidelines, including coordinating the payments between employers and licensed childcare providers.
From the coast to the mountains, parents seek solutions
North Carolina has lost 6% of its childcare facilities in the past year.
On Hatteras Island, the only childcare provider shut its doors in December 2025. Little Sprouts Child Care in Frisco told parents that staffing shortages and an unsustainable financial model forced the decision.
With three small children, Erin Trant was forced to quit her job as an office manager of a real estate firm and stay home.
Trant told NC Newsline that six months later, little has changed.
“We still have no childcare,” said Trant. “There is a group of us working towards finding a solution, whether that be a co-op for childcare or a full-day, fully staffed childcare facility. It is still in the very beginning stages.”
When Trant and other mothers turned to Dare County for a solution, they were told they would need to present commissioners with a business plan, a full budget, and staffing details before they would be considered for any sort of seed money to get started.
Trant said a local pastor is helping scout locations and write grants, but things are not moving as rapidly as parents there would like.
“My husband and I also own a small seasonal business. So, in the wintertime, we kind of just made it work as far as him being home with our younger kiddos. Once our season starts, which is now, we just don’t have family or extra help to watch our kids,” Trant said.
Trant is hopeful lawmakers will take concrete action this session to address the crisis, including setting a minimum statewide subsidy rate that would stabilize the struggling industry and reduce county funding disparities.
On the opposite end of the state, Carol Steen, a vice president with Biltmore Farms in Asheville, is also asking for a minimum statewide rate that will allow childcare facilities to keep their doors open as the area continues to rebuild after Helene.
“Childcare was fragile before Helene, and it remains even more fragile after the storm, costing our workforce, our families and our regional economy,” Steen told members of the N.C. Task Force on Child Care and Early Education last week.
When there’s no access to affordable, quality childcare, starting a family or growing a family “turns into a professional crisis,” Steen said.
NC senator bets on a different approach
Senator Jim Burgin (R-Harnett), who co-chairs the governor’s task force on childcare, has introduced Senate Bill 1042 to address the problem.
Burgin’s bill would use some of the money the state receives from gambling taxes to increase childcare funding. He’s proposing sending an extra $75 million every year to DHHS for that purpose. Burgin’s bill also calls on the agency to develop a plan for a minimum statewide childcare subsidy rate by December 1, 2026.
Back on Hatteras Island, Trant said solutions and financial support from the state can’t come soon enough.
“I just think of those kiddos that might not have the best home life. Daycare is a place where they can go and be loved and they can have their friends,” said Trant. “We cannot just forget about the most vulnerable and [children] that are literally going to be running this country someday.”
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NC Newsline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. NC Newsline maintains editorial independence. Contact Editor Laura Leslie for questions: info@ncnewsline.com.
The push comes as childcare shortages deepen statewide. North Carolina has lost 6% of its childcare facilities in the past year, including the only provider on Hatteras Island, forcing some parents to quit jobs and stay home with children. Lawmakers and business leaders warned the lack of affordable childcare is becoming both an economic and workforce crisis, especially in communities still recovering from Hurricane Helene.
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