The proposed bill establishes the Early Childhood Educator Pay Equity Program within the New Jersey Department of Human Services (DHS), aimed at addressing the wage disparities faced by early childhood educators in child development facilities. The program will provide grant payments to these facilities to increase the minimum compensation for educators based on their degree, years of experience, and position title. The bill emphasizes the critical role of the childcare workforce, which is predominantly composed of women of color and immigrants, in supporting both child development and working parents. It highlights the economic challenges faced by childcare providers, who often operate on thin margins and struggle to offer competitive wages without compromising quality or affordability.

To implement the program, the DHS will establish the Early Childhood Educator Salary Scale, which will ensure pay parity between early childhood educators in child development facilities and their counterparts in public schools. The bill also mandates the creation of a Child Development Facility Payment Formula to determine grant amounts based on the costs of implementing the salary scale and the economic needs of the communities served. In cases where funding is insufficient, the department has the authority to adjust grant payments or prioritize funding for facilities that participate in the New Jersey Child Care Subsidy Program. Overall, the bill aims to provide necessary public investment to sustain the childcare industry and support the workforce that delivers essential services to New Jersey families.