Contains whereas clauses.

Adds new Part 10D, Child and Adult Care Food Program (CACFP) for Child Care Providers, to Article 3 of GS Chapter 143B.

New GS 143B-168.40 (a) defines CACFP as authorized by specified federal law and as administered by the State Division of Child Development and Early Education (Division) within the Department of Health and Human Services (DHHS). Defines family, friend, and neighbor (FFN) child care provider as an individual who is legally operating under applicable State law providing child care in specified settings and inclusive of individuals providing (i) child care that falls below the threshold requiring licensure under GS 110-86(3)b., (ii) arrangements excluded from the definition of child care under GS 110-86(2), and (iii) child care holding a license-exempt status recognized by DHHS.

New GS 143B-168.40(b) directs DHHS to take all feasible administrative action to extend CACFP access to FFN child care providers, which may include but is not limited to identifying sponsoring organizations capable of administering CACFP reimbursements to FFN providers, developing application/training/record-keeping requirements, applying for available federal programs, and establishing tiered compliance mechanisms.

New GS 143B-168.40(c) directs DHHS to report annually to the specified NCGA committee and division by July 1 and specifies four report requirements.

New GS 143B-168.40(d) provides that nothing in this statute should be construed to require an FFN provider to participate in CACFP, alter license requirements of GS Chapter 110, or conflict with federal law or regulations governing CACFP.

Directs the Division to publish an implementation plan including timelines, required rule changes, any necessary federal approvals, and resource requirements within 180 days of the act’s effective date.

Directs the Division to submit initial report required by new GS 143B-168.40(c) within 12 months of the act’s effective date.

Appropriates $150,000 for 2025-26 from the General Fund to the Division to develop the required implementation plan, including identifying feasible administrative approaches, determining required resources, outreach to existing and potential sponsoring organizations, piloting application/training/record-keeping procedures, and applying for available federal USDA flexibilities as described in new GS 143B-168.40(b). Appropriates $500,000 in recurring funds for 2025-26 for administrative costs and lists some included costs. Provides that funding will continue until federal CACFP reimbursements can cover these costs, at which point the Division must notify the Office of State Budget and Management and the Fiscal Research Division so appropriations can be reduced accordingly. Specifies that funds do not revert until expended or until June 30 of the second fiscal year following appropriation, whichever is first.