Sen. Chaudhuri files bill in North Carolina Senate to raise child care subsidy rates

A new bill filed by Sen. Chaudhuri in the North Carolina Senate seeks to raise child care subsidy rates to improve access and support for providers statewide, according to the North Carolina State Senate.

The bill, filed as SB 594 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Care Center Cost Support Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill mandates the Department of Health and Human Services, Division of Child Development and Early Education, to increase child care subsidy market rates to the 75th percentile as advised by the 2023 Child Care Market Rate Study effective Oct. 1, 2025. It requires child care providers in counties with lower-than-state rates to adopt these increased rates unless the county can prove that this adjustment would impair access to care due to fewer than 50 children per age group. In such cases, the county market rate may be applied. Additionally, the bill allocates $110 million in recurring funds from the General Fund for each year of the 2025–2027 fiscal biennium to support these adjustments. The legislation is set to take effect on July 1, 2025.

Of the two sponsors of this bill, Sophia Chitlik proposed the most bills (52) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Chaudhuri graduated from Davidson College in 1991 with a BA and again in 1999 from North Carolina Central University with a JD.

Chaudhuri, a Democrat, was elected to the North Carolina State Senate in 2019 to represent the state’s 15th Senate district, replacing previous state senator Terry Van Duyn.