How to Accept Child Care Subsidy in North Carolina

The Three-Star Prerequisite

Getting a DCDEE license does not automatically qualify you to accept state child care subsidies. North Carolina's Subsidized Child Care Assistance (SCCA) program requires a separate enrollment process — and you must hold a rated license of three stars or higher to participate.

All new secular programs receive an initial one-star license. Until you reach the three-star requirement, you cannot accept subsidized children. During that window, your revenue comes entirely from private-pay families.

Religious-sponsored programs operate under a Notice of Compliance instead of a star rating. They don't receive a star rating unless they formally opt into the rating system.

Step 1: Earn Your Three-Star Rating

You need to accumulate enough points across Staff Education (1–7 points) and Program Standards (1–7 points), plus an optional Quality Point, to reach the 7-point minimum for three stars. Your education credentials and an NCRLAP environmental assessment are the two scoring levers.

Request your first NCRLAP assessment after you've operated for at least six months. Programs receive one free assessment every three years.

Step 2: Register a Business NCID

Once you have three stars, create a Business NCID at ncid.nc.gov. Select the "Business" account type — this is different from the individual NCID you used for background checks. You cannot use your personal NCID for business subsidy transactions.

Step 3: Visit Your County DSS In Person

This step cannot be done online. You must physically go to your local county Department of Social Services (DSS) or Local Purchasing Agency (LPA) with:

• A valid photo ID
• A copy of your active DCDEE license showing three or more stars

The county DSS verifies your identity and links your Business NCID to your facility record in the NC FAST (North Carolina Families Accessing Services through Technology) database.

Step 4: Set Up the NC FAST Provider Portal

Once the county links your account, log into the NC FAST Provider Portal at providerportal.nc.gov. You'll enter:

• Your operating shifts and days of service
• Private-pay tuition rates (the state uses these to calculate your reimbursement)
• Direct deposit information for subsidy payments

You must also e-sign the formal Provider Agreement within the portal. This is the binding contract between you and the state that governs subsidy participation.

As of March 22, 2026, the state requires Multi-Factor Authentication (MFA) for all Provider Portal access. Make sure you've set up the necessary security credentials during registration.

How Reimbursement Rates Work

The SCCA program doesn't pay your private-pay tuition rate directly. It uses the lesser of two numbers:

• Your county's Star Market Rate (set by the state, varies by county and star level)
• Your Private-Pay Rate (what you charge non-subsidized families)

Higher star ratings unlock higher market rates. A five-star program in Wake County receives a significantly higher reimbursement than a three-star program in the same county.

Families receiving subsidies pay a co-pay (called the Parent Fee) directly to you, typically about 10% of their gross monthly income. The state pays the remainder.

Ongoing Requirements

Once enrolled, you're responsible for:

• Recording daily attendance through the NC FAST portal for each subsidized child
• Submitting monthly attendance rosters to trigger payment
• Completing annual re-enrollment to maintain active provider status
• Maintaining your three-star or higher rating — dropping below disqualifies you from the program

County Waitlists and Funding Gaps

SCCA funding is allocated county by county, and some counties maintain active waitlists for families seeking subsidy. This means even after you're enrolled as a provider, the families in your area may not have active vouchers yet.

This is why most experienced providers treat subsidy income as supplemental rather than primary — building a mixed client base of private-pay and subsidized families hedges against county-level funding fluctuations.

The North Carolina Home Daycare Licensing Guide maps the full timeline from initial licensure through subsidy enrollment, including the points-earning strategies that get you to three stars fastest.

See more North Carolina guides →