The lack of affordable, available child care options in North Carolina is forcing new parents to quit their jobs — and draining billions of dollars out of the state economy in lost productivity, Gov. Josh Stein said Tuesday.

Stein is proposing a variety of reforms to address issues in the industry. They seek to not just provide subsidies for low-income families, but also to make jobs in child care work more appealing to people, and to utilize space in state-owned buildings for child care dedicated to teachers and other state employees.

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"Investing in child care benefits everyone," Stein said in a written statement. "When children grow up in a supportive and nurturing environment, it sets them on the trajectory to thrive as adults."

Also on Tuesday, Stein signed into law House Bill 412, which will now allow child cares to take on more kids, as long as they have enough staff to keep the proper ratios. It also lifts various other regulations on child care businesses and passed the legislature nearly unanimously.

Taken together, the overall goal of the new law and the new proposals announced Tuesday is to tackle both affordability and availability.

Speaking with reporters Tuesday, Stein referenced the state legislature's failure to pass a budget but said that once they do reach a deal, he hopes it'll include funding for child care subsidies and other proposals his task force is recommending.

"I'm eager to work with the General Assembly to find ways to pay for childcare so that folks who want to go to work can go to work," he said.

Stein's task force proposes action on the following issues:

  • Set a statewide child care subsidy reimbursement rate floor
    • Develop approaches to offer non-salary benefits for child care professionals
      • Explore partnerships with the UNC system, community colleges, and K-12 schools to increase access to child care for public employees and students at public institutions
        • Explore subsidized or free child care for child care teachers
          • Link existing workforce compensation and support programs for early childhood professionals
            • Explore the creation of a child care endowment

              And it's not just a Democratic political wishlist put together by Stein; he worked on the report with a team of state lawmakers from both parties, business leaders, early childhood education experts and others.

              "Child care is the most important issue facing young families," said Sen. Jim Burgin, a Harnett County Republican who helped put together the report. "In reality, many families start tackling this issue before conception. This task force has looked at all aspects of child care and early education and explored many possible solutions."

              In 2020, WRAL reported, the average cost of child care in North Carolina was over $9,000 per child annually. Stein's new report says as of 2025 it's now just shy of $12,000 per child annually. And in the state's urban areas, costs can easily reach higher than that: In places like Wake and Durham counties some child care centers charge in excess of $1,500 a month — the equivalent of $18,000 or more per year.

              For some new parents, it makes more financial sense to quit working entirely than it does to try enrolling in child care. Someone making $15 an hour makes $31,200 a year — before taxes — if they can also manage to find a job that pays them 40 hours a week. North Carolina's minimum wage is $7.25 an hour.

              And even for new parents who can afford to put their kids in child care, they often can't find an opening near their home or their work. Months-long waitlists are common statewide. In fast-growing parts of the state, parents can sometimes find themselves waiting a year or more for a spot to open up — another complication that can lead to some quitting their jobs so that they can either become stay-at-home parents or move to be closer to family members who can help out.

              Stein's report estimates that the state economy is losing $5.7 billion every year in lost productivity because of parents quitting their jobs after being unable to find a child care option that's both open and affordable.

              Stein's lead economic development strategist, Commerce Secretary Lee Lilley, added that North Carolina needs to improve child care not just to keep people in the workforce, but also to keep the state competitive in attracting new jobs. The availability of good, affordable child care is something businesses want to know about before deciding where to expand, he said. One of the other members of the committee is Gary Salamido, who leads the business lobbying group the North Carolina Chamber of Commerce.

              "Child care is a business issue, a talent issue and a health issue that must be addressed to maintain our competitiveness and to increase statewide prosperity,” Lilley said.