This bill establishes a nonlapsing, revolving emergency fund within the Department of the Treasury aimed at preventing the closure of child care programs that experience a significant decrease in enrollment, specifically a drop of 30 percent or more from the previous year. The fund will serve as a repository for appropriated state funds and any available federal funding, such as the Child Care and Development Block Grant. The State Treasurer will manage the fund, disbursing funds upon request from the Commissioner of Human Services, who will also create an application process for child care providers at risk of closure.

The bill appropriates $10 million from the General Fund to support this emergency fund. Child care providers that meet the eligibility criteria can apply for grants on a rolling basis until the fund is depleted, with individual grants capped at $60,000 per year. The Commissioner of Human Services may also impose additional application requirements for those receiving federal funds to ensure compliance with relevant laws. The act will take effect immediately but will remain inoperative until the funds are deposited into the emergency fund.