A Winston-Salem Police Department news release says officers arrested the women Tuesday after numerous reports about the video. Police seized drug paraphernalia.
Jail records show Michaela Pearson and Candice Little were held on charges of child abuse and contributing to delinquency of minors.
The children were taken to the hospital for observation.
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Video obtained by WXII-TV shows an adult handing three young children a cigarillo that they puff on. Police said the cigar contained an illegal substance but didn't elaborate.
Phone listings for the women couldn't be found. The public defender's office said it won't know if the women have lawyers until an upcoming court appearance.