Titles the act as the “Family Empowerment Act.” Sets out NCGA findings.

Requires the Department of Health and Human Services (DHHS) to expand the Child Care Subsidy Program by increasing funding and broadening eligibility to families earning up to 300% of the federal poverty level; gives priority to single-parent households and families in industries with nontraditional work hours.

Requires DHHS, by January 1, 2027, in conjunction with other relevant State agencies, to develop a tiered copay structure so that families pay no more than 7% of their household income on child care. Also requires child care providers receiving State subsidies to meet qualified early childhood education standards to ensure program effectiveness.

Requires the Department of Revenue (DOR) to establish a tax credit program for business that offer at least four weeks of paid parental leave or paid family caregiving leave. Sets the credit of up to $2,500 per participating employee, capped at $250,000 per year per business. Requires businesses with fewer than 50 employees offering padi family leave to be eligible to participate in a grant program to offset costs, by January 1, 2027, with the program administered by the Department of Commerce (DOC) and other relevant State agencies. Gives priority to businesses in rural and underserved communities.

Requires DHHS to expand funding for home-visiting programs providing early childhood education, parenting skills training, and infant health support, with priority for families below 250% of the federal prover level and those at risk of child welfare involvement. Requires the State (led by the DOC), by January 1, 2027, to develop and implement financial literacy workshops and economic empowerment programs for parents. Requires partnering with community organizations, credit unions, and financial institutions to expand access to free financial counseling.

Requires the Department of Labor (DOL), by January 1, 2027, to develop guidelines and incentives for business adopting flexible work policies; those employers will receive State recognition and certification. Requires State agencies to adopt model flexible work policies supporting work-life balance; requires annual surveys to assess employee needs on flexibility and family support.

Requires that the act be funded through State appropriations, federal family support grants, and public-private partnerships. Appropriates $75 million in each year of the 2025-27 biennium from the General Fund to DHHS to implement and sustain the programs implemented in this act, effective July 1, 2025, and July 1, 2026, respectively. Requires that the expansion of Child Care Assistance Program begin by January 1, 2026; employer tax incentives and Family Leave Grant programs take effect July 1, 206; and Parental Support Services Expansion be operational by December 1, 2026.

Effective January 1, 2026, creates the Family Support Oversight Board (Board), consisting of seven members. Requires the Board to report annually beginning January 1, 2027, to the NCGA on the impact of child care support expansions, effectiveness of paid family leave tax incentives, and work-family balance trends across participating businesses.

Allows DHHS and DOL to adopt rules to implement the act.

Enacts new GS 105-153.12 giving eligible employers a tax credit equal to the lesser of: (1) amount of paid leave paid by the eligible employer during the taxable year or (2) $2,500 of paid leave per eligible employee paid by the eligible employer during the taxable year. Caps the credit at $250,00 per employer per calendar year. Defines eligible employer as a business with a physical presence in NC that: (1) is an employer under GS 105-163.1, (2) provides paid leave to eligible employees, and (3) is subject to income tax. Effective for taxes imposed for taxable years beginning on or after January 1, 2026.