Bill Summary for S 456 (2025-2026)

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Summary date: 

Mar 25 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 456 (Public) Filed Monday, March 24, 2025
AN ACT TO IMPLEMENT THE HEALTHY START NC PROGRAM TO REDUCE MATERNAL MORTALITY AND CHILDHOOD POVERTY AND TO OFFSET COSTS BY MODIFYING THE CORPORATE INCOME TAX RATE SO AS TO KEEP THE EFFECTIVE TAX RATE FOR CORPORATE TAXPAYERS MORE CLOSELY ALIGNED WITH THAT WHICH IS REQUIRED OF INDIVIDUAL TAXPAYERS OF THE STATE.
Intro. by Chitlik, Murdock, Salvador.

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Bill summary

Allocates $161,600,000 in recurring funds for each year of the 2025-2027 biennium from the Temporary Assistance for Needy Families (TANF) Block Grant to the Department of Social Services (DSS) to implement the Healthy Start NC Program, which provides short-term cash allowances to meet pre- and post-birth needs of expecting mothers and babies. Appropriates $146,300,000 in recurring funds from the General Fund for each year of the 2025-2027 biennium to DSS to implement the Healthy Start Program.

Directs DSS to develop guidelines for administration and implementation of the Healthy Start Program. Provides specific requirements for DSS in administering the program, including (1) study and amend as necessary the TANF state plan; (2) define childbirth as a specific crisis situation and episode of need to authorize the use of TANF funds under federal Department of Health and Human Services guidance; (3) develop a means-based test at the time of birth for TANF funds that will not trigger work requirements or loss of other state or federal aid; (4) identify and partner with a nonprofit organization to administer the program; and (5) report to the General Assembly annually on families receiving aid, broken down by TANF funds and private funds.

Establishes requirements for awards and use of program funds, including a one-time expectant-mother award of $1,500 and additional monthly awards of $500 subject to federal fund availability limits and the means-based testing required for TANF funds. Specifies that private funds raised by the nonprofit partner shall first be used to augment the funds available to families qualifying for TANF funds, and then to benefit as many other families as possible.

Amends GS 105-130.3 by removing the existing language phasing out the corporate income tax rate beginning in taxable year 2026 through 2029, and providing that the corporate income tax rate will be 2.25% of net income going forward.

The appropriations and requirements for DSS and the Healthy Start NC Program are effective July 1, 2025, and the amendments to GS 105-130.3 are effective and applicable for taxable years beginning on or after January 1, 2025.