State Uses Disaster Aid to Boost Child Care Pay

North Carolina will spend $11.3 million in federal disaster aid to supplement pay for child care workers in Hurricane Helene-affected counties.

Updated on Nov. 10, 2026 in Child Care

State Uses Disaster Aid to Boost Child Care Pay

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North Carolina is expanding its Child Care WAGE$ program to 39 counties affected by Hurricane Helene, using $11.3 million in federal disaster aid to supplement child care workers' pay. Gov. Josh Stein announced the three-year expansion on Nov. 5.

Why it matters

The supplements are intended to stabilize the child care workforce and preserve staffing and capacity during the region's storm recovery. The state's recovery planning, developed with GROW NC, identified workforce stabilization as a priority.

The $11.3 million represents about 15% of a $75 million federal child care disaster recovery award, with an initial estimated annual incentive of $1,350 per participant. The number of eligible workers who will receive payments has not been specified.

The players

Josh Stein

Josh Stein is the Governor of North Carolina, who announced the three-year Child Care WAGE$ expansion.

NC Department of Health and Human Services

The NC Department of Health and Human Services is the state agency that worked with GROW NC to identify Hurricane Helene recovery priorities, including workforce stabilization.

GROW NC

GROW NC is the state recovery planning partner that helped identify workforce stabilization as a disaster recovery priority.

The details

The expansion adds supplements in Ashe, Madison and Watauga counties, and annual incentives in 36 counties already offering WAGE$. Payments are tied to education and continued employment, with participants becoming eligible after six consecutive months at the same facility. The initiative does not offer families a tuition discount or require providers to lower prices.

Nov. 5: Governor Josh Stein announces the three-year WAGE$ expansion.
November 2026: Applications open in Ashe, Madison and Watauga counties.
January 2027: Annual incentives begin in the other 36 counties.
Spring 2027: Checks expected to be widely available in newly served counties.

Culture Shift

The expansion uses funds from the American Relief Act's $75 million federal child care disaster recovery award to target workforce pay rather than facilities. This marks a shift toward treating child care staffing as core disaster recovery infrastructure.

Eligible child care workers in the listed counties may see added annual income tied to staying at the same facility. Families are not receiving a tuition discount, so the benefit reaches providers' workforce rather than parents' costs.

The takeaway

Child care stability during disaster recovery depends heavily on keeping experienced workers in place. Parents in affected areas should check with their local providers about staffing and program changes as the supplements roll out.

What happens next

Applications open in Ashe, Madison and Watauga counties in November 2026, annual incentives begin in the other 36 counties in January 2027, and checks are expected to be widely available by spring 2027.