The proposed bill establishes the Early Childhood Educator Pay Equity Program within the Department of Human Services (DHS) in collaboration with the Department of Children and Families. This program aims to provide grant payments to child development facilities to enhance the minimum compensation for early childhood educators based on their degree, years of experience, and position title. The bill recognizes the critical role of the childcare workforce, which is predominantly composed of women of color and immigrants, and addresses the economic challenges they face, including low wages and limited access to essential benefits. The legislation emphasizes the importance of investing in the childcare industry to support New Jersey's families and communities, ultimately promoting economic stability and reducing inequality in access to quality early childhood education.

To implement the program, the DHS is tasked with establishing the Early Childhood Educator Salary Scale, which will set minimum salary requirements for early childhood educators and ensure pay parity with public school educators. The bill also mandates the creation of a Child Development Facility Payment Formula to determine grant payments to participating facilities, taking into account the economic needs of the communities they serve. In cases where funding is insufficient, the department has the authority to adjust grant payments or prioritize funding for facilities that receive state subsidies. Additionally, the bill establishes the Early Childhood Educator Pay Equity Fund to support the program's objectives, ensuring that the necessary financial resources are available to sustain the childcare workforce in New Jersey.