NC Governor Launches Task Force to Tackle Child Care Crisis Amid $5B Annual Economic Loss
March 10, 2025
Stein concluded his announcement by reiterating that investing in child care is crucial for child development, parental workforce participation, and overall economic growth.
The end of pandemic-related federal childcare subsidies has exacerbated the crisis, with many programs struggling after the expiration of $24 billion in stabilization grants from the American Rescue Plan.
Recent legislative proposals include tax exemptions for child care facilities and funding for Dolly Parton’s Imagination Library literacy program, aimed at supporting early childhood education.
The task force, co-chaired by Lt. Gov. Rachel Hunt and Sen. Jim Burgin, is tasked with assessing the current childcare system, recommending investments, and addressing workforce challenges.
A survey revealed that 32% of parents with young children are delaying their careers or education because of the high costs of child care, while 60% have missed work due to child care challenges.
Stein noted that approximately 40% of child care workers rely on public assistance due to low wages, which contributes to staffing shortages and limited availability of child care slots.
On March 10, 2025, North Carolina Governor Josh Stein announced the establishment of the Task Force for Child Care and Early Education, aimed at improving access to affordable, high-quality childcare in the state.
The economic implications of child care challenges are significant, with estimates indicating that North Carolina loses over $5 billion annually due to these issues.
Lt. Gov. Hunt highlighted the financial strain on families, noting that many are incurring debt due to high child care costs, often spending more on preschool than on rent.
He emphasized that child care should ideally cost only 7% of a family's income, yet four out of five families exceed this threshold, with the average cost of infant care reaching $12,000 annually.
This announcement came after a tour of Kate's Korner child care center in Durham, where Stein highlighted the critical shortage of available child care slots in North Carolina.
He called for collaborative policy solutions from both the state government and the business community to tackle these challenges and support working parents.
Summary based on 10 sources
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Sources

Raleigh News & Observer • Mar 11, 2025
Under the Dome: Gov. Stein announces bipartisan task force to expand access to child care
WRAL.com • Mar 10, 2025
New task force will tackle NC's childcare crisis, Gov. Josh Stein says
WRAL.com • Mar 10, 2025
NC governor wants child care to be available, affordable
WCNC • Mar 10, 2025
New task force seeks affordable child care solutions in NC