Governor Josh Stein today announced an $11.3 million expansion of the Child Care WAGE$ salary supplement program over three years to support the early education workforce in counties affected by Hurricane Helene. This targeted funding will support the early education workforce across 39 counties heavily impacted by the hurricane.
"Early childhood educators are unsung heroes, and their work is absolutely vital to the economic recovery of western North Carolina," said Governor Josh Stein. "By putting money directly into the pockets of these dedicated educators, we help retain talent and ensure parents can go to work knowing their children are safe, learning, and thriving."
The Child Care WAGE$ Program was introduced in 1994 to show the link between teacher education, retention, and child care quality. The Child Care WAGE$ program provides education-based, biannual salary supplements directly to low-paid family child care providers, early childhood teachers, directors, and other staff who spend regular time in the classroom and work with children from birth through age 5 in licensed child care facilities. Designed to combat low base wages and reduce high turnover in the child care industry, the program rewards educators who advance their formal early childhood education, thus improving child care quality. To encourage workforce stability and provide continuous quality care for young children, participants receive these direct financial supplements after completing six consecutive months in the same child care facility. Educators in full- and part-time employment arrangements may be eligible.
This workforce initiative aligns with recommendations from the NC Task Force on Child Care and Early Education. The U.S. Chamber Foundation describes WAGE$ as an “innovative compensation strategy.” In North Carolina, the turnover among participants was 14% in 2026, compared to the state average of 38% as noted in a 2023 NC Workforce Study.
"A stable early childhood workforce is the backbone of both our health care infrastructure and our economy," said NC Health and Human Services Secretary Dev Sangvai. "This expansion of the WAGE$ program provides critical financial resources to the early educators who anchor our communities, helping child care centers retain the qualified staff necessary to support the health, development, and resilience of our youngest North Carolinians during this challenging recovery process."
The funding for this child care infrastructure recovery effort comes from a $75 million award to the state from the Administration for Children & Families’ Office of Child Care through the American Relief Act’s Disaster Supplemental Funds for Child Care. In partnership with Early Years Inc., this initiative will establish the Child Care WAGE$ program and offer biannual salary supplements based on individual educator eligibility requirements in Ashe, Madison and Watauga, three counties that are not currently served by the WAGE$ initiative. This initiative will also provide an additional annual incentive to the workforce in the other 36 counties affected by Hurricane Helene that currently offer WAGE$, estimated at $1,350 per participant.
North Carolina relies on high-quality, affordable early childhood care and education to support children’s healthy development and learning, enable parents to work, and keep businesses running. The state’s birth-through-five system has been in crisis for decades, a challenge exacerbated by the COVID-19 pandemic and further strained by recent natural disasters. For this reason, NCDHHS pursued this funding and collaborated with the Governor’s Recovery Office of Western North Carolina (GROW NC) to identify four uses for the funds, including workforce stabilization. The Child Care WAGE$ Program benefits the community by improving the quality of early care and education for young children and by retaining teachers, ensuring slots are available to families who need them. Most evidence suggests three primary factors are associated with teacher quality: education, stability, and compensation. WAGE$ addresses all three.
"Early educators are the foundation of children’s learning and well-being, yet too many work without the compensation and stability they deserve. By expanding Child Care WAGE$ in communities affected by Hurricane Helene, we can help early care and education programs recruit and retain qualified educators, strengthen the early childhood workforce, and support families as western North Carolina continues to recover," said Dr. Kristi Snuggs, President, Early Years.
In the three expansion counties (Ashe, Madison, and Watauga), the opportunity to apply for salary supplements will open in November 2026, and supplement checks in these three counties will become widely available by spring 2027 for eligible participants. Annual incentives for individuals in the 36 other Helene-affected counties are expected to begin in January 2027.
"Investing in direct salary supplements is one of the best ways to stabilize and retain our early childhood workforce, ensuring the consistent, high-quality care that children need during their most critical years of development," said NCDHHS Division of Child Development and Early Education Director Candace Witherspoon.
For additional information on participating in Child Care WAGE$: Helene Expansion for Disaster Relief, email wagespages@earlyyearsnc.org.
Additionally, NCDHHS is requesting child care facilities in disaster-impacted counties update and complete their Disaster Impact Reports for Tropical Storm Debby and Hurricane Helene. Reports that have been submitted by child care operators are under review. Reimbursements began on October 30, 2026, and will continue on a rolling basis. For help completing the report or determining eligibility or the status of a previously submitted Disaster Impact Report, child care operators should contact their Disaster Relief Program Consultant.
State funding is still available to licensed child care operators in Helene-impacted counties through the North Carolina Partnership for Children. For more information, child care operators may email helenerecovery@smartstart.org.