New Funding Opportunities for Smart Start and Early Childhood

The North Carolina General Assembly is deep into the 2021 Long Session. There are several big new opportunities for North Carolina to increase its level of investment in early childhood.

  • Federal COVID Relief. Earlier this year, Congress passed the American Rescue Plan, the latest federal COVID-19 stimulus bill. North Carolina will receive more than $1.3 billion for child care relief plus $5 billion in flexible funds for state government. Advocates are pushing the state to make strategic investments that will protect our early childhood system during COVID-19 and make it stronger and more resilient in the future.
  • Gov. Cooper Budget/Leandro Plan. Gov. Roy Cooper released his recommended 2021 biennium budget proposal in March. The Governor recommended a $20M recurring increase for Smart Start this biennium, in addition to other substantial new investments in child care subsidies, NC PreK, and education and compensation for the early childhood workforce. Many of these recommendations are aligned with the latest Leandro action plan. The action plan is the state’s proposed roadmap for responding to the long-running Leandro court case and providing a sound, basic education for all children beginning at birth and recommends more than $1 billion in increased funds for early childhood over the next decade.
  • Smart Start Appropriations Bills. This session, legislators filed H262 and S464, Smart Start Funds, which would appropriate an additional $30M per year to expand Smart Start programs and services for child care, family support, and health. Both bills were introduced by top appropriations chairs in each chamber and received strong bipartisan support, with 53 Representatives and 21 Senators signing on as cosponsors. As the General Assembly prepares to write its biennium budget in the next few months, we are optimistic that legislators will include new funds for Smart Start.

The COVID-19 pandemic has highlighted the importance of supporting families and early childhood service providers. Families rely on a strong early childhood system that allows parents to work and young children to grow up healthy and ready for success in school and life. Fortunately, these opportunities for new investment in Smart Start and the early childhood system can help ensure that all families have access to the programs and services they need. NCPC and the Smart Start network will continue to work with policymakers and advocates at all levels to secure these new funds throughout the legislative session and beyond.

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