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Childcare providers in North Carolina are trying different ways to help workers afford care for their own children, a cost that can make it harder for centers to recruit and retain staff. A Watauga County initiative assisted 18 employees with 22 children, while Kate’s Korner in Durham covers most care costs for its employees. A statewide subsidy for North Carolina has been proposed by a center owner but is not confirmed as a state policy.
Childcare workers in North Carolina are receiving help with the cost of caring for their own children through employer benefits and a local assistance initiative, according to a report by The 74. The efforts respond to a workforce challenge: when workers cannot afford care, providers may struggle to retain staff and keep classrooms, operating hours and enrollment at needed levels.
At Kate’s Korner in Durham, owner Kate Goodwin says the center provides free childcare to employees as an investment in its workforce. Some staff use vouchers; for workers who cannot, the center covers all but one week of care each month, Goodwin said. She said the benefit means the center accepts slimmer profit margins. The report does not specify how many employees receive the benefit or the center’s total cost.
A survey of about 1,200 North Carolina childcare providers found that 61% of directors said their programs already offered employees a childcare benefit. The funding arrangements differ: some providers absorb the expense, while other communities are exploring ways for businesses, nonprofits and local government to share it.
In Watauga County, the Boone Area Chamber of Commerce Foundation launched an assistance initiative last year with $40,000 from local donors and businesses. It provided help to 18 childcare employees with 22 children, averaging $684 per child. The report describes this as a local program; it does not say that the assistance covers each family’s full childcare bill.
Childcare Costs Shape Center Staffing
The cost of care affects both individual workers and the centers that depend on them. The report says staffing shortages can lead to smaller classrooms, shorter hours and reduced enrollment, limiting the care available to families and employers who need workers to have reliable childcare.
A study by Appalachian State University cited in the report found that childcare workers earned an average of $30,600 a year, while median monthly childcare costs were $900. At the average annual salary, one child in care would cost roughly a third of gross income, based on those figures. That comparison helps explain why the benefit programs may support retention, though the report does not measure whether any particular program has reduced turnover.
The issue also has implications beyond childcare centers. The report places it against North Carolina’s labor force participation rate, which it gives as about 58%, compared with roughly 61% nationally. Business leaders cited in the report view affordable childcare as one factor affecting whether people can work; the figures alone do not establish how much childcare costs account for the difference.
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Local Aid and a Kentucky Model
Watauga’s program is part of a broader attempt to support childcare workers and providers still recovering from the loss of federal funding that had helped stabilize the industry, according to the report. Chamber president David Jackson said assistance can give workers a reason to remain at a center rather than spend much of a paycheck on childcare.
Kentucky offers a different model. The state launched its Free Child Care for Child Care Workers Program in 2022, subsidizing care for workers employed at least 20 hours a week at a center, regardless of household income. Kate Shanks, senior vice president of public affairs for the Kentucky Chamber of Commerce, said more than 5,300 families working in childcare benefited over the past year and that lawmakers made the program permanent earlier this year.
The Kentucky Chamber says at least nine other states have since enacted similar policies. Goodwin supports a comparable statewide program in North Carolina and suggested it could include teachers as well. Her proposal is an expressed preference, not an announced North Carolina policy.
“As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make.”
— Kate Goodwin, owner of Kate’s Korner
North Carolina Policy Remains Open
The report does not identify a statewide North Carolina subsidy for childcare workers, a proposal moving through the legislature or a timeline for action. Goodwin’s support for a Kentucky-style program is her view, not evidence of state approval or funding. It is also unclear whether the Watauga initiative will continue, how many applicants it can serve in future rounds, or whether its assistance measurably improves recruitment and retention.
The statewide provider survey records whether programs offer a benefit, but the report does not provide details on benefit size, eligibility or the share of workers whose full childcare costs are covered. Nor does it establish how much of North Carolina’s staffing shortage is caused specifically by employees’ difficulty paying for care.
Whether Local Aid Expands
The immediate next steps depend on local funding decisions and whether North Carolina policymakers pursue a statewide program. The report names no scheduled legislative action or state announcement. Watauga’s results may inform discussions among local businesses, donors and childcare providers about sustaining or expanding its assistance, but no expansion is confirmed.
Providers and families will also be watching whether employee benefits help centers keep staff and maintain capacity. The figures reported so far describe who received assistance and how much it averaged; they do not yet show the program’s longer-term effect on staffing, enrollment or childcare availability.
Key Questions
What help are North Carolina childcare workers receiving?
Some centers provide childcare benefits directly. Kate’s Korner in Durham covers all but one week of care each month for employees who cannot use vouchers, according to owner Kate Goodwin. Watauga County’s initiative has also provided financial assistance to eligible workers.
How many people did the Watauga County initiative assist?
The Boone Area Chamber of Commerce Foundation’s initiative assisted 18 childcare employees with 22 children, averaging $684 per child, using $40,000 in funding from local donors and businesses.
Does North Carolina have a statewide childcare subsidy for workers?
The report does not identify a statewide subsidy for North Carolina childcare workers. Goodwin supports creating one, but her comments do not mean the state has approved or funded such a program.
How does Kentucky’s program work?
Kentucky’s program, launched in 2022, subsidizes care for childcare workers employed at least 20 hours a week at a center, regardless of household income. The Kentucky Chamber said more than 5,300 families working in childcare benefited over the past year.
Why could employee childcare benefits matter to families?
The report says staffing shortages can contribute to smaller classrooms, shorter hours and reduced enrollment. If benefits help centers retain workers, they could support care availability, though the report does not provide evidence that the programs have already produced those results.
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