In 2024-2025, the WNC Health Policy Initiative partnered with the WNC Early Childhood Coalition and other regional partners in the early childhood/childcare space to address the expiration of pandemic-era federal stabilization grants, along with other challenges facing the child care sector. On July 2, 2026, the NC General Assembly finally passed the 2026-2027 budget, which includes several funding several allocations and policies to support early childhood centers and providers.

Thanks to predicted funding cuts in NC’s Medicaid rebase, NC DHHS implemented a series of sweeping cuts to adjust for the shortfall. Under the announced plan, nearly all Medicaid providers will face rate reductions of 3 percent to 8 percent, while some categories — including nursing homes, hospitals, psychiatric residential treatment facilities and certain ambulatory services — will see steeper cuts of up to 10 percent. 

The reductions will affect services across the board, from personal care and home health to outpatient therapy and hospital care.