HB 542

Appropriates $7.5 million from the ARPA Temporary Savings Fund to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (Division) for 2025-27 to be allocated to the North Carolina Partnership for Children, Inc. (NCPC) for the purpose of expanding mental and behavioral health services for children, families, and staff in child care facility settings and out-of-school programs. Identifies budget codes wherein the NCPC must spend the the funds appropriated. Directs NCPC to distribute appropriated funds to local partnerships and specifies that the funds cannot supplement or supplant existing Smart Start partnership behavioral health spending. Provides that the funds remain available for the initiatives described until expended. Directs NCPC to submit a progress report on the described mental and behavioral health initiatives to the specified legislative committee and division, and the DHHS Secretary, by March 15, 2026, and a final report by November 15, 2027. Details required content of the reports. Excludes funds allocated to the NCPC by the Division from specified state laws relating to: administrative cost requirements; child care services funding requirements; child care subsidy expansion requirements; and match requirements.