GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 420
Short Title: Sound Basic Education for Every Child. (Public)
Sponsors: Representatives von Haefen, Ball, Hawkins, and Prather (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 18, 2025
*H420 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE FO R A SOUND BASIC EDUC ATION FOR EVERY CHILD IN 2
NORTH CAROLINA. 3
The General Assembly of North Carolina enacts: 4
5
PART I. WELL-PREPARED, HIGH-QUALITY, AND SUPPORTED TEACHER I N 6
EVERY CLASSROOM 7
8
PEPSC POSITIONS 9
SECTION 1.1. There is appropriated from the General Fund to the Department of 10
Public Instruction the sum of two hundred thousand dollars ($200,000) in recurring funds for the 11
2025-2026 fiscal year to support two additional positions for the Professional Educator 12
Preparation and Standards Commission (Commission) to increase the capacity of the 13
Commission to coordinate efforts to recruit, prepare, retain, and support the State's teaching 14
workforce on behalf of the State Board of Education and the Department of Public Instruction. 15
16
EDUCATOR LICENSURE AND COMPENSATION REFORM PLAN 17
SECTION 1.2.(a) The State Board of Education shall develop a plan for 18
implementing a teacher licensure and compensation reform model designed to restore respect for 19
the teaching profession; to build a more diverse, quality teaching force; to increase instructional 20
capabilities of teachers; and to entice more young professionals, mid-career professionals, and 21
out-of-state individuals into the teaching profession. The plan shall include at least the following 22
components: 23
(1) Offer early, inclusive, and clear pathways into the profession. 24
(2) Reward excellence and advancement among teachers. 25
(3) Encourage retention in the profession. 26
The State Board of Education shall submit details on the plan and any recommended 27
legislative changes to implement the plan to the Joint Legislative Education Oversight 28
Committee, the Fiscal Research Division, and the Office of State Budget and Management by 29
March 15, 2026. 30
SECTION 1.2.(b) There is appropriated from the General Fund to the Department 31
of Public Instruction the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 32
2025-2026 fiscal year to develop the plan required by subsection (a) of this section. 33
34
EDUCATOR PREPARATION PROGRAM CAPACITY S TUDY 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 420-First Edition
SECTION 1.3.(a) The State Board of Education, in consultation with The University 1
of North Carolina System Office, shall conduct a study to identify the resources and structures 2
that educator preparation programs at the constituent institutions of The University of North 3
Carolina need to be able to do the following: 4
(1) Increase capacity in educator preparation programs to recruit, prepare, 5
support, and graduate at least 5,000 in-State trained teachers annually. 6
(2) Increase capacity in educator preparation programs to recruit, prepare, 7
support, and graduate more educators of color annually. 8
The State Board of Education shall report on the findings of this study to the Joint 9
Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 10
State Budget and Management by March 15, 2026. 11
SECTION 1.3.(b) There is appropriated from the General Fund to the Department 12
of Public Instruction the sum of twenty-five thousand dollars ($25,000) in nonrecurring funds for 13
the 2025-2026 fiscal year to conduct the study required by subsection (a) of this section. 14
15
ALTERNATIVE PATHWAYS TEACHER RECRUITMENT MODELS 16
SECTION 1.4.(a) There is appropriated from the General Fund to the Department 17
of Public Instruction the sum of four million three hundred thousand dollars ($4,300,000) in 18
recurring funds for the 2025-2026 fiscal year to support research-based Grow-Your-Own and 19
2+2 teacher recruitment education programs in all regions of the State, including high 20
school-based career academy programs, the North Carolina Teacher Cadet Program, the 21
Teaching as a Profession program, and the TA to Teachers program. 22
SECTION 1.4.(b) There is appropriated from the General Fund to the Department 23
of Public Instruction the sum of one million dollars ($1,000,000) in recurring funds for the 24
2025-2026 fiscal year to establish new Grow-Your-Own and 2+2 teacher recruitment education 25
programs in high-need public school units. 26
27
STUDY ON CONSOLIDATING AND COORDINATING TEACHER RECRUITMENT 28
AND RETENTION EFFORTS 29
SECTION 1.5.(a) The State Board of Education shall develop a plan to implement 30
and fund a statewide system or entity to coordinate, enhance, and evaluate efforts to recruit, place, 31
and retain teacher candidates and beginning teachers between institutions of higher education 32
and local school administrative units. This study shall focus on, but not be limited to, how best 33
to consolidate and coordinate statewide teacher recruitment and retention efforts. The State Board 34
of Education shall submit details on the plan and any recommended legislative changes to 35
implement the plan to the Joint Legislative Education Oversight Committee, the Fiscal Research 36
Division, and the Office of State Budget and Management by March 15, 2026. 37
SECTION 1.5.(b) There is appropriated from the General Fund to the Department 38
of Public Instruction the sum of twenty-five thousand dollars ($25,000) in nonrecurring funds for 39
the 2025-2026 fiscal year to be used to support the development of the plan required by this 40
section. 41
42
EXPAND NC TEACHING FELLOWS PROGRAM 43
SECTION 1.6.(a) Part 3 of Article 23 of Chapter 116 of the General Statutes reads 44
as rewritten: 45
"Part 3. North Carolina Teaching Fellows Program. 46
"§ 116-209.60. Definitions. 47
The following definitions apply in this Part: 48
(1) Commission. – The North Carolina Teaching Fellows Commission. 49
(2) Director. – The Director of the North Carolina Teaching Fellows Program. 50
(3) Forgivable loan. – A forgivable loan made under the Program. 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 3
(4) Program. – The North Carolina Teaching Fellows Program. 1
(5) Public school. – An elementary or secondary school located in North Carolina 2
that is governed by a local board of education, charter school board of 3
directors, regional school board of directors, or University of North Carolina 4
laboratory school board of trustees. 5
(5a) Qualifying licensure area. – A teacher licensure area in one of the following 6
subjects: 7
a. Either of the following, as identified pursuant to G.S. 116-209.62(h): 8
1. Special education. 9
2. STEM. 10
b. Elementary education (K-6). 11
(5b) Qualifying teacher. – A teacher in a North Carolina public school who meets 12
the following criteria: 13
a. Received a forgivable loan under the Program. 14
b. Graduated within 10 years from an educator preparation program 15
leading to teacher licensure, excluding any authorized deferment for 16
extenuating circumstances. 17
c. Serves as a teacher in a qualifying licensure area. 18
(6) STEM. – Science, technology, engineering, and mathematics. 19
(7) Trust Fund. – The North Carolina Teaching Fellows Program Trust Fund. 20
… 21
"§ 116-209.62. North Carolina Teaching Fellows Program established; administration. 22
(a) Program. – There is established the North Carolina Teaching Fellows Program to be 23
administered by the System Office of The University of North Carolina, in conjunction with the 24
Authority and the Commission. The purpose of the Program is to recruit, prepare, and support 25
students residing in or attending institutions of higher education located in North Carolina for 26
preparation as highly effective teachers in qualifying licensure areas in the State's public schools. 27
The Program shall be used to provide a forgivable loan to individuals interested in preparing to 28
teach in the public schools of the State in qualifying licensure areas.State. 29
(b) Trust Fund. – There is established the North Carolina Teaching Fellows Program 30
Trust Fund to be administered by the Authority, in conjunction with the System Office of The 31
University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program 32
for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, 33
and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the 34
Trust Fund is to provide financial assistance to qualified students for completion of teacher 35
education and licensure programs to fill qualifying licensure areas teach in the public schools of 36
the State. 37
… 38
(d) Director of the Program. – The Board of Governors of The University of North 39
Carolina shall appoint a Director of the Program. The Director shall appoint staff to the 40
Commission and shall be responsible for recruitment and coordination of the Program, including 41
proactive, aggressive, and strategic recruitment of potential recipients. Efforts shall include 42
identifying and encouraging students of color and students who may not otherwise consider a 43
career in teaching to enter the Program. Recruitment activities shall include a broad-based 44
strategy (i) targeting regions of the State with the highest teacher attrition rates and teacher 45
recruitment challenges, challenges and (ii) actively engaging with educators, business leaders, 46
experts in human resources, elected officials, and other community leaders throughout the State, 47
and (iii) attracting candidates in qualifying licensure areas to the Program. State to attract a 48
diverse pool of applicants. The Director shall report to the President of The University of North 49
Carolina. The Authority shall provide office space and clerical support staff, as necessary, to the 50
Director for the Program. 51 General Assembly Of North Carolina Session 2025
Page 4 House Bill 420-First Edition
(e) Student Selection Criteria for Forgivable Loans. – The Commission shall adopt 1
stringent standards for awarding forgivable loans based on multiple measures to ensure that only 2
the strongest applicants receive them, including the following: 3
(1) Grade point averages. 4
(2) Performance on relevant career and college readiness assessments. 5
(3) Experience, accomplishments, and other criteria demonstrating qualities 6
positively correlated with highly effective teachers, including excellent verbal 7
and communication skills. 8
(4) Demonstrated commitment to serve in a qualifying licensure area in North 9
Carolina public schools. 10
(f) Program Selection Criteria. – The Authority shall administer the Program in 11
cooperation with up to 10 institutions of higher education with approved educator preparation 12
programs selected by the Commission that represent a diverse selection of both postsecondary 13
constituent institutions of The University of North Carolina and private postsecondary 14
institutions operating in the State. State, including minority-serving institutions. The 15
Commission shall adopt stringent standards for selection of the most effective educator 16
preparation programs, including the following: 17
(1) Demonstrates high rates of educator effectiveness on value-added models and 18
teacher evaluations, including using performance-based, subject-specific 19
assessment and support systems, such as edTPA or other metrics of evaluating 20
candidate effectiveness that have predictive validity. 21
(2) Demonstrates measurable impact of prior graduates on student learning, 22
including impact of graduates teaching in qualifying licensure areas.learning. 23
(3) Demonstrates high rates of graduates passing exams required for teacher 24
licensure. 25
(4) Provides curricular and co-curricular enhancements in leadership, facilitates 26
learning for diverse learners, and promotes community engagement, 27
classroom management, and reflection and assessment. 28
(5) Requires at least a minor concentration of study in the subject area that the 29
candidate may teach. 30
(6) Provides early and frequent internship or practical experiences, including the 31
opportunity for participants to perform practicums in diverse school 32
environments. 33
(7) Is approved by the State Board of Education as an educator preparation 34
program. 35
(8) For an educator preparation program enrolling loan recipients in a program of 36
study leading to licensure in elementary education (K-6), provides training 37
that is aligned with the Science of Reading in accordance with 38
G.S. 115C-269.20. The Commission shall contract with a third-party entity to 39
biennially evaluate whether a program identified in this subdivision is 40
providing training that is aligned with the Science of Reading. 41
(g) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 42
students to be used at up to 10 selected institutions for completion of a program leading to initial 43
teacher licensure as follows: 44
(1) North Carolina high school seniors. – Forgivable loans of up to five thousand 45
dollars ($5,000) per semester for up to eight semesters. 46
(2) Students applying for transfer to a selected educator preparation program at 47
an institution of higher education. – Forgivable loans of up to five thousand 48
dollars ($5,000) per semester for up to six semesters. 49 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 5
(3) Individuals currently holding a bachelor's degree seeking preparation for 1
teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000) 2
per semester for up to four semesters. 3
(4) Students matriculating at institutions of higher education who are changing to 4
an approved program of study at a selected educator preparation program. – 5
Forgivable loans of up to five thousand dollars ($5,000) per semester for up 6
to four semesters. 7
Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to 8
obtaining licensure. 9
(g1) Extracurricular Enhancement Activities. – The Program shall provide planning, 10
training, and ongoing support for Program leaders and recipients, including training on topics 11
such as culturally responsive teaching, teaching students with disabilities, and trauma-informed 12
teaching. 13
(h) Identification of STEM and Special Education Licensure Areas. – The Superintendent 14
of Public Instruction shall identify and provide to the Commission and the Authority a list of 15
STEM and special education licensure areas and shall annually provide to the Commission the 16
number of available positions in each qualifying licensure area relative to the number of current 17
and anticipated teachers in that area of licensure. The Commission shall make the list of STEM 18
and special education licensure areas readily available to applicants. 19
… 20
(j) Annual Report. – The Commission, in coordination with the Authority, the 21
Department of Public Instruction, and the selected educator education programs participating in 22
the Program shall report no later than January 1, 2019, and annually thereafter, to the Joint 23
Legislative Education Oversight Committee regarding the following: 24
(1) Forgivable loans awarded from the Trust Fund, including the following: 25
a. Demographic information regarding recipients. 26
b. Number of recipients by institution of higher education and program. 27
c. Information on number of recipients by anticipated qualifying 28
licensure area. 29
(2) Placement and repayment rates, including the following: 30
a. Number of graduates who have been employed in a qualifying 31
licensure area within two years of program completion. 32
b. Number of graduates who accepted employment at a low-performing 33
school identified under G.S. 115C-105.37 as part of their years of 34
service. 35
c. Number of graduates who have elected to do loan repayment and their 36
years of service, if any, prior to beginning loan repayment. 37
d. Number of graduates employed in a qualifying licensure area who 38
have received an overall rating of at least accomplished and have met 39
expected growth on applicable standards of the teacher evaluation 40
instrument. 41
e. Aggregate information on student growth and proficiency in courses 42
taught by graduates who have fulfilled service requirements through 43
employment in a qualifying licensure area.employment. 44
…." 45
SECTION 1.6.(b) There is appropriated from the General Fund to the North Carolina 46
Teaching Fellows Program Trust Fund the sum of twenty-nine million nine hundred thousand 47
dollars ($29,900,000) in recurring funds for the 2025-2026 fiscal year and the sum of thirty-seven 48
million dollars ($37,000,000) in recurring funds for the 2026-2027 fiscal year to revise and 49
expand the NC Teaching Fellows Program in accordance with subsection (a) of this section. 50 General Assembly Of North Carolina Session 2025
Page 6 House Bill 420-First Edition
SECTION 1.6.(c) Subsection (a) of this section applies to applications for the award 1
of funds beginning in the 2025-2026 academic year. 2
3
RECRUITMENT BONUS PILOT PROGRAM FOR TEACHERS IN LOW -WEALTH, 4
LOW-PERFORMING, OR HIGH -NEED SCHOOLS 5
SECTION 1.7.(a) Purpose. – The State Board of Education shall establish a grant 6
program to assist local school administrative units in providing multiyear recruitment bonuses to 7
certified teachers who commit to teach multiple years in a low-performing or high-need school. 8
Bonuses awarded as part of this grant program shall include, but are not limited to, the following 9
components: 10
(1) Awards over multiple years with a requirement that teachers remain in the 11
school over multiple years to receive the bonus. 12
(2) Awards to licensed teachers who commit to teach in a school identified as 13
low-performing, as defined in G.S. 115C-105.37, a school identified as 14
continually low-performing, as defined in G.S. 115C-105.37A, or a school 15
where seventy-five percent (75%) or greater of students qualify for free or 16
reduced-price lunch under the National School Lunch Program. 17
SECTION 1.7.(b) Request for Proposal. – By September 1, 2025, and annually 18
thereafter, the State Board of Education shall issue a request for proposal (RFP) for the grant 19
program. Local boards of education shall submit their proposals by December 1, 2025. The RFP 20
shall require that proposals include the following information at a minimum: 21
(1) Description of the proposal, including details on targeted schools for the 22
bonuses and how the bonus program will be structured. 23
(2) Evidence-based research that supports the proposal. 24
(3) Implementation time line for the plan. 25
(4) Plans for financial sustainability once grant money is no longer available. 26
SECTION 1.7.(c) Grant Awards. – By February 15, 2026, the State Board of 27
Education shall review the proposals submitted by local boards of education and select up to 10 28
local school administrative units for grant awards. The State Board of Education may make grant 29
awards for up to three years. A local school administrative unit may not receive more than five 30
hundred thousand dollars ($500,000) in a single fiscal year from the grant program. 31
SECTION 1.7.(d) Evaluation and Reporting. – Of the funds appropriated by this 32
section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 33
to contract with an independent research organization to evaluate the impact of this grant 34
program. The independent research organization shall report the results of this evaluation to the 35
Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 36
of State Budget and Management by September 1, 2028. The Department of Public Instruction 37
shall report annually on the implementation of this grant program beginning March 15, 2026. 38
SECTION 1.7.(e) Appropriation. – There is appropriated from the General Fund to 39
the Department of Public Instruction the sum of twelve million dollars ($12,000,000) in recurring 40
funds for the 2025-2026 fiscal year to implement the grant program in accordance with this 41
section. 42
SECTION 1.7.(f) Carryforward. – Any unexpended funds appropriated under this 43
section at the end of the 2025-2026 fiscal year shall not revert to the General Fund but shall 44
remain available for the purposes set forth in this section. 45
46
TEACHER PREPARATION RESIDENCY PILOT GRANT PROGRAM 47
SECTION 1.8.(a) Purpose. – The State Board of Education shall establish a grant 48
program to assist local school administrative units in the development of teacher preparation 49
residency pilot programs. Teacher preparation residency programs provide the necessary 50
preparation and induction supports to teacher preparation candidates pursuing a continuing 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 7
professional license. Teacher preparation residency programs eligible to receive grant funding 1
through this program shall include, at a minimum, the following components: 2
(1) Coursework in the candidate's area of licensure. 3
(2) Tuition and stipends. 4
(3) Faculty advising. 5
(4) Clinical training experiences. 6
(5) Ongoing induction support. 7
Residency programs eligible for this grant program may include partnerships between 8
local school administrative units, educator preparation programs, local community colleges or 9
universities, and other community organizations. Grant funds awarded to local school 10
administrative units under this program shall be matched by the local school administrative units 11
on the basis of one dollar ($1.00) in non-grant funds for every one dollar ($1.00) in grant funds. 12
SECTION 1.8.(b) Request for Proposal. – By October 1, 2025, the State Board of 13
Education shall issue a request for proposal (RFP) for the grant program. Local boards of 14
education shall submit their proposals by January 15, 2026. The RFP shall require that proposals 15
include the following information at a minimum: 16
(1) Description of the proposal, including the number of teacher preparation 17
candidates to be served. 18
(2) Evidence-based research that supports the proposal. 19
(3) Implementation time line for the plan. 20
(4) Plans for financial sustainability once grant money is no longer available. 21
SECTION 1.8.(c) Grant Awards. – By April 15, 2026, the State Board of Education 22
shall review the proposals submitted by local boards of education and shall select up to 10 local 23
school administrative units for grant awards. The State Board of Education may make grant 24
awards for up to three years. A local school administrative unit may not receive more than five 25
hundred thousand dollars ($500,000) in a single fiscal year from this grant program. 26
SECTION 1.8.(d) Evaluation and Reporting. – Of the funds appropriated by this 27
section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 28
to contract with an independent research organization to evaluate the impact of this grant 29
program. The independent research organization shall report the results of this evaluation to the 30
Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 31
of State Budget and Management by September 1, 2029. The Department of Public Instruction 32
shall report annually on the implementation of this grant program beginning March 15, 2026. 33
SECTION 1.8.(e) Appropriation. – There is appropriated from the General Fund to 34
the Department of Public Instruction the sum of twenty million dollars ($20,000,000) in recurring 35
funds for the 2025-2026 fiscal year and the sum of twenty-five million dollars ($25,000,000) in 36
recurring funds for the 2026-2027 fiscal year to implement the grant program in accordance with 37
this section. 38
SECTION 1.8.(f) Carryforward. – Any unexpended funds appropriated under this 39
section at the end of each year of the 2025-2027 fiscal biennium shall not revert to the General 40
Fund but shall remain available for the purposes set forth in this section. 41
42
EXPAND PARTNERSHIP TEACH 43
SECTION 1.9. There is appropriated from the General Fund to the Board of 44
Governors of The University of North Carolina the sum of two hundred thousand dollars 45
($200,000) in recurring funds for the 2025-2026 fiscal year to expand Partnership Teach to up to 46
two additional hub sites, including providing funds for staffing, fellowship support, mentoring, 47
and increasing recruitment capacity. 48
49
DEVELOPING A REPRESENTATIVE AND INCLUSIVE VISION FOR EDUCATION 50
(DRIVE) GRANT PROGRAM 51 General Assembly Of North Carolina Session 2025
Page 8 House Bill 420-First Edition
SECTION 1.10.(a) Purpose. – The State Board of Education, in consultation with 1
the Office of the Governor, The University of North Carolina System Office, and the Community 2
College System Office, shall establish a grant program to support strategic partnerships 3
committed to increasing the pipeline of educators of color across the State. As an extension of 4
the recommendations and strategies presented by the Governor's DRIVE Task Force on January 5
1, 2021, the grants shall be provided to local school administrative units, institutions of higher 6
education, and community organizations to implement innovative initiatives that support the 7
recruitment, preparation, support, and retention of racially, ethnically, and linguistically diverse 8
educators. The purpose of this program shall be to do at least the following: 9
(1) Increase the diversity of the educator workforce across the State through novel 10
recruitment efforts. 11
(2) Strengthen the pipeline of aspiring teachers of color across the State through 12
traditional and alternative certification pathways. 13
(3) Provide mechanisms to support and retain educators of color currently serving 14
in elementary and secondary public schools. 15
(4) Promote collaboration between school systems, institutions of higher 16
education, and community and nonprofit organizations to diversify the 17
educator workforce. 18
SECTION 1.10.(b) Applications. – Applicants for grants shall demonstrate at least 19
the following for grant award consideration: 20
(1) A partnership between at least two of the following entities: local school 21
administrative units, Historically Black Colleges and Universities, 22
Historically Minority-Serving Institutions, educator preparation programs, 23
alternative certification programs, public and private colleges and universities, 24
community colleges, and community or nonprofit organizations. 25
(2) Proposals for strategies that address one or more of the following components 26
of the educator development continuum as highlighted by the DRIVE Task 27
Force's 2021 Report to the Governor: recruitment, placement and induction, 28
and support and retention of educators of color. 29
SECTION 1.10.(c) Use of Funds. – Grant funds may be used for the following 30
activities: 31
(1) Strengthening existing high school dual enrollment programs to offer 32
education-based college credit or honors courses as streamlined pathways for 33
future careers in education. 34
(2) Implementing targeted school system–level and community-based 35
recruitment programs for aspiring educators of color interested in traditional 36
and alternative educator preparation programs. 37
(3) Utilizing and leveraging existing financial aid programs that include 38
scholarships, loan forgiveness, and tuition reimbursement that reduce the 39
disproportionate financial burden incurred by aspiring candidates of color. 40
(4) Increasing preparation and supporting preservice educators of color through 41
paid clinical learning experiences, with a commitment to teaching in North 42
Carolina public schools. 43
(5) Offering support for job placement and licensure for candidates of color after 44
completing their educator preparation program. 45
(6) Providing induction and mentoring programs that address the needs of 46
educators of color and that include sustaining networking and professional 47
learning communities or affinity groups. 48
(7) Encouraging and financially supporting educators of color interested in 49
joining national professional organizations or attending national conferences. 50 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 9
SECTION 1.10.(d) Request for Proposal. – By October 1, 2025, the State Board of 1
Education shall issue a request for proposal (RFP) for the grant program. Applicants shall submit 2
their proposals by December 1, 2025. The RFP shall require that proposals include the following 3
information at a minimum: 4
(1) Description of the proposal. 5
(2) Evidence-based research that supports the proposal. 6
(3) An implementation time line for the plan. 7
(4) Plans for financial sustainability once grant money is no longer available. 8
SECTION 1.10.(e) Selection. – By February 1, 2026, a selection committee shall 9
select up to five grantees, making the effort to ensure that there is representation across the State 10
as reflected by rural and urban districts, institutions of higher education, and community-based 11
partners. Any grants awarded may be spent over a five-year period from the initial award. Grants 12
may be awarded for new or existing projects. 13
SECTION 1.10.(f) Reporting Requirements. – No later than September 1 of each 14
year, grant recipients shall submit to the State Board of Education an annual report for the 15
preceding grant year that describes the implementation of the program. This report must include 16
qualitative and quantitative data to demonstrate program effectiveness. 17
SECTION 1.10.(g) Evaluation and Reporting. – Of the funds appropriated by this 18
section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 19
to contract with an independent research organization to evaluate the impact of this grant 20
program. The independent research organization shall report the results of this evaluation to the 21
Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 22
of State Budget and Management by September 1, 2027. The State Board of Education shall 23
report annually on the implementation of this grant program beginning on January 1, 2027. 24
SECTION 1.10.(h) Appropriation. – There is appropriated from the General Fund 25
to the Department of Public Instruction the sum of two million dollars ($2,000,000) in recurring 26
funds for the 2025-2026 fiscal year to implement the grant program in accordance with this 27
section. 28
SECTION 1.10.(i) Carryforward. – Any unexpended funds at the end of each fiscal 29
year from the funds appropriated for the grant program under this section shall not revert to the 30
General Fund but shall remain available for expenditure for the purposes set forth in this section. 31
32
ANNUAL EDUCATOR DIVERSITY REPORT 33
SECTION 1.11.(a) G.S. 115C-12(22) reads as rewritten: 34
"(22) Duty to Monitor the State of the Teaching and School Administration 35
Professions and Educator Diversity in North Carolina. – The State Board of 36
Education shall monitor and compile an annual report reports on the 37
following: 38
a. The state of the teaching and school administration professions in 39
North Carolina, as provided in G.S. 115C-289.2 and G.S. 115C-299.5. 40
b. Educator diversity in North Carolina, as provided in 41
G.S. 115C-299.7." 42
SECTION 1.11.(b) Article 20 of Chapter 115C of the General Statutes is amended 43
by adding a new section to read: 44
"§ 115C-299.7. Duty to monitor educator diversity. 45
(a) Definitions. – As used in this section, the following definitions apply: 46
(1) Diversity categories. – Race and ethnicity. 47
(2) Education entity. – Any of the following: 48
a. A public school unit, as defined in G.S. 115C-5(7a). 49
b. An educator preparation program, as defined in G.S. 115C-269.1(10). 50
(3) Educators. – Teachers employed by a public school unit. 51 General Assembly Of North Carolina Session 2025
Page 10 House Bill 420-First Edition
(4) Future educators. – Students enrolled in an educator preparation program. 1
(5) Grade level. – Where applicable, the grade level taught by an educator and the 2
grade level attended by a future educator. 3
(6) Mobility rates. – The percentage of educators who move from one school or 4
public school unit to another. 5
(7) Qualitative data. – Information collected via questionnaire, interview, and 6
other nonquantitative methods. 7
(b) Education Entity Diversity Report. – No later than July 30, 2025, and annually 8
thereafter, each education entity shall report to the Department of Public Instruction the following 9
information regarding the diversity of educators and future educators in the entity from the 10
previous school year, disaggregated by diversity category and, where applicable, by grade level: 11
(1) Total number of educators and future educators. 12
(2) The number of persons who apply to work in or attend the education entity as 13
an educator or future educator. 14
(3) The number of educators and future educators who are employed by or 15
enrolled in an education entity. 16
(4) Retention rates of educators. 17
(5) Mobility rates of educators between schools in a public school unit. 18
(6) The number of future educators who do the following: 19
a. Complete an educator preparation program. 20
b. Become licensed in North Carolina. 21
c. Become employed in a public school unit. 22
(7) Qualitative data from educators and future educators on the diversity and 23
inclusiveness of the education entity, including applicable information on 24
recruitment, educator preparation, retention, mobility, and turnover. This 25
information should include related reasons for educator attrition provided on 26
educator workforce reports. 27
(8) Recommendations from the entity to improve diversity of educators and future 28
educators, including strategies to recruit and retain a diverse pool of educators 29
and future educators. 30
(c) Statewide Diversity Report. – No later than October 15, 2025, and annually thereafter, 31
the Department of Public Instruction shall collect the information provided pursuant to 32
subsection (b) of this section and report that information, organized to include at least the 33
following, to the Joint Legislative Education Oversight Committee, disaggregated by diversity 34
category and, where applicable, by grade level: 35
(1) Statewide data for each education entity, including mobility rates of educators 36
between public school units. 37
(2) Recommendations from the Department to improve diversity among 38
educators and future educators in education entities, including strategies to 39
recruit and retain a diverse pool of educators and future educators. 40
(d) Statistical Profile. – The Department of Public Instruction shall include the 41
information regarding public school units collected pursuant to this section in the statistical 42
profile of public schools maintained on its website. 43
(e) Certain Information Excluded. – Nothing in this section shall be construed to require 44
an education entity or the Department of Public Instruction to report any data that reveals 45
confidential or personally identifiable information about an educator or future educator." 46
47
ESTABLISH THE OFFICE OF EQUITY AFFAIRS WITHIN THE DEPARTMENT OF 48
PUBLIC INSTRUCTION 49
SECTION 1.12.(a) Chapter 115C of the General Statutes is amended by adding a 50
new Article to read: 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 11
"Article 6E. 1
"Office of Equity Affairs. 2
"§ 115C-64.35. Establishment, purpose, and duties of Office of Equity Affairs. 3
(a) There is established within the Department of Public Instruction the Office of Equity 4
Affairs. The purpose of the Office of Equity Affairs is to provide internal oversight within the 5
Department of Public Instruction and the State Board of Education specific to compliance with 6
the State's constitutional role to provide each child the opportunity to receive a sound basic 7
education and to direct the recruitment and retention of a diverse educator workforce. 8
(b) The Office of Equity Affairs shall review educational policies, programs, and 9
initiatives and shall provide an independent, objective source of information to be used in 10
evaluating substantial compliance with sound basic education standards and the goal of recruiting 11
and retaining a diverse educator workforce, giving special attention and consideration to 12
outcomes for at-risk students. The Office of Equity Affairs may suggest adjustments to the 13
content and delivery of educational policies, programs, and initiatives to improve their efficacy. 14
The authority of the Office of Equity Affairs to evaluate and advise shall extend to all policies, 15
programs, and initiatives related to ensuring that all students have access to a sound basic 16
education and to the goal of recruiting and retaining a diverse educator workforce. 17
(c) In carrying out its duties, the Office of Equity Affairs has authority to obtain full and 18
unrestricted access to all records, information, and data in the possession of or legally available 19
to the Department of Public Instruction or the State Board of Education. 20
(d) Beginning no later than January 15 immediately following the effective date of this 21
section, and semiannually thereafter, the Office of Equity Affairs shall submit a report to the 22
Joint Legislative Education Oversight Committee on the (i) implementation of its duties as set 23
forth in this Article, (ii) progress of the Department of Public Instruction and the State Board of 24
Education in effectively providing each child the opportunity to receive a sound basic education, 25
and (iii) diversity of the educator workforce. Prior to the reporting of any deficiencies in progress, 26
the Office of Equity Affairs shall give to the Department of Public Instruction and the State Board 27
of Education ample notice of the deficiencies and an opportunity to correct or improve the 28
deficiencies and shall include in the report any efforts to do so. The report shall include any 29
recommended legislation. 30
"§ 115C-64.36. Administrative organization; organizational independence. 31
(a) There is established within the Department of Public Instruction the position of 32
Deputy Superintendent of Equity Affairs who shall serve as the chief officer of the Office of 33
Equity Affairs. The Deputy Superintendent shall have professional, administrative, technical, and 34
clerical personnel as may be necessary in carrying out the duties of the position. 35
(b) The Superintendent of Public Instruction shall recommend to the State Board of 36
Education the individual to be appointed as Deputy Superintendent of Equity Affairs, and the 37
recommended appointee shall be appointed upon approval by the State Board of Education. The 38
Deputy Superintendent shall report to the Superintendent of Public Instruction and the State 39
Board of Education jointly and may be removed only upon the joint agreement of the 40
Superintendent of Public Instruction and a majority of the members of the State Board of 41
Education. The Deputy Superintendent shall be organizationally situated to avoid impairments 42
to independence of the Deputy Superintendent's professional judgment on how to best 43
accomplish the purposes of the Office of Equity Affairs." 44
SECTION 1.12.(b) There is appropriated from the General Fund to the Department 45
of Public Instruction for the 2025-2026 fiscal year the sum of four hundred thousand dollars 46
($400,000) in recurring funds to permit the Deputy Superintendent of Equity Affairs, as 47
established by this section, to appoint up to four full-time staff to assist in the administration of 48
the Deputy Superintendent's duties under Article 6E of Chapter 115C of the General Statutes, as 49
enacted by this section. Personnel appointed to these positions shall report solely to the Deputy 50
Superintendent of Equity Affairs. The appointments shall not be subject to approval or 51 General Assembly Of North Carolina Session 2025
Page 12 House Bill 420-First Edition
disapproval by the Superintendent of Public Instruction or the State Board of Education. Of the 1
four time-limited positions, one shall be an administrative assistant position and at least one shall 2
be an attorney position. 3
4
NORTH CAROLINA NEW TEACHER SUPPORT PROGRAM 5
SECTION 1.13. There is appropriated from the General Fund to the Board of 6
Governors of The University of North Carolina the sum of thirty-seven million three hundred 7
thousand dollars ($37,300,000) in recurring funds for the 2025-2026 fiscal year and forty-eight 8
million five hundred thousand dollars ($48,500,000) in recurring funds for the 2026-2027 fiscal 9
year for the New Teacher Support Program to provide mentoring and coaching support to 10
beginning teachers who are employed in public schools identified as low-performing or 11
high-poverty at no cost to the local school administrative units. 12
13
ADVANCED TEACHING ROLES CHANGES 14
SECTION 1.14.(a) G.S. 115C-310.7(a) reads as rewritten: 15
"(a) Class Size Flexibility. – Notwithstanding G.S. 115C-301, with the approval of the 16
State Board of Education, ATR schools may exceed the maximum class size requirements for 17
kindergarten through third grade during any term of up to three years in which State funds are 18
awarded to the ATR unit where the school is located. At the conclusion of the term, any class 19
size flexibility approved for an ATR school pursuant to this subsection shall expire.grade." 20
SECTION 1.14.(b) This section is effective July 1, 2025, and applies beginning with 21
the 2025-2026 school year. 22
23
EDUCATOR PROFESSIONAL DEVELOPMENT ALLOTMENT 24
SECTION 1.15.(a) Effective July 1, 2025, there is established the Educator 25
Professional Development Allotment in the State Public School Fund. The State Board of 26
Education shall establish the purposes for which the funds within the new Educator Professional 27
Development funding allotment may be used, including at least the following: 28
(1) Educator professional development for targeted public school units and 29
schools requiring multitiered support for prekindergarten through grade three, 30
including the following: 31
a. Child development. 32
b. Early literacy. 33
c. Social and emotional learning. 34
d. Family engagement. 35
(2) Implementation of literacy training. 36
(3) Mentoring programs for beginning educators. 37
SECTION 1.15.(b) There is appropriated from the General Fund to the Department 38
of Public Instruction the sum of one hundred one million one hundred fifty thousand dollars 39
($101,150,000) in recurring funds for the 2025-2026 fiscal year and one hundred twenty-eight 40
million four hundred fifty thousand dollars ($128,450,000) in recurring funds for the 2026-2027 41
fiscal year to be used to fund the Educator Professional Development Allotment. Funds shall be 42
allotted to local school administrative units based on average daily membership. 43
44
REPORT FINDINGS OF COMPENSATION STUDY 45
SECTION 1.16. The Department of Public Instruction shall report to the Joint 46
Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 47
State Budget and Management (OSBM) by March 1, 2026, on the findings of the compensation 48
study it conducted on alternative teacher compensation models and advanced teaching roles using 49
funds awarded by OSBM from the North Carolina Evaluation Fund. 50
51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 13
TEACHER SALARY SCHEDULE 1
SECTION 1.17.(a) The following monthly teacher salary schedule shall apply for 2
the 2025-2026 fiscal year to licensed personnel of the public schools who are classified as 3
teachers. The salary schedule is based on years of teaching experience. 4
2025-2026 Teacher Monthly Salary Schedule 5
Years of Experience "A" Teachers 6
0 $4,600 7
1 $4,685 8
2 $4,770 9
3 $4,855 10
4 $4,940 11
5 $5,025 12
6 $5,110 13
7 $5,195 14
8 $5,280 15
9 $5,365 16
10 $5,450 17
11 $5,535 18
12 $5,620 19
13 $5,705 20
14 $5,790 21
15 $5,875 22
16 $5,950 23
17-19 $6,070 24
20-22 $6,135 25
23-25 $6,200 26
26-28 $6,295 27
29+ $6,370 28
SECTION 1.17.(b) Salary Supplements for Teachers Paid on This Salary Schedule. 29
– 30
(1) Licensed teachers who have NBPTS certification shall receive a salary 31
supplement each month of twelve percent (12%) of their monthly salary on 32
the "A" salary schedule. 33
(2) Licensed teachers who are classified as "M" teachers shall receive a salary 34
supplement each month of ten percent (10%) of their monthly salary on the 35
"A" salary schedule. 36
(3) Licensed teachers with licensure based on academic preparation at the 37
six-year degree level shall receive a salary supplement of one hundred 38
twenty-six dollars ($126.00) per month in addition to the supplement provided 39
to them as "M" teachers. 40
(4) Licensed teachers with licensure based on academic preparation at the 41
doctoral degree level shall receive a salary supplement of two hundred 42
fifty-three dollars ($253.00) per month in addition to the supplement provided 43
to them as "M" teachers. 44
(5) Certified school nurses shall receive a salary supplement each month of ten 45
percent (10%) of their monthly salary on the "A" salary schedule. 46
(6) School counselors who are licensed as counselors at the master's degree level 47
or higher shall receive a salary supplement of one hundred dollars ($100.00) 48
per month. 49 General Assembly Of North Carolina Session 2025
Page 14 House Bill 420-First Edition
SECTION 1.17.(c) For school psychologists, school speech pathologists who are 1
licensed as speech pathologists at the master's degree level or higher, and school audiologists 2
who are licensed as audiologists at the master's degree level or higher, the following shall apply: 3
(1) The first step of the salary schedule shall be equivalent to the sixth step of the 4
"A" salary schedule. 5
(2) These employees shall receive the following salary supplements each month: 6
a. Ten percent (10%) of their monthly salary, excluding the supplement 7
provided pursuant to sub-subdivision b. of this subdivision. 8
b. Five hundred dollars ($500.00). 9
(3) These employees are eligible to receive salary supplements equivalent to those 10
of teachers for academic preparation at the six-year degree level or the 11
doctoral degree level. 12
(4) The twenty-sixth step of the salary schedule shall be seven and one-half 13
percent (7.5%) higher than the salary received by these same employees on 14
the twenty-fifth step of the salary schedule. 15
SECTION 1.17.(d) Beginning with the 2014-2015 fiscal year, in lieu of providing 16
annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those 17
longevity payments are included in the monthly amounts under the teacher salary schedule. 18
SECTION 1.17.(e) A teacher compensated in accordance with this salary schedule 19
for the 2025-2026 school year shall receive an amount equal to the greater of the following: 20
(1) The applicable amount on the salary schedule for the applicable school year. 21
(2) For teachers who were eligible for longevity for the 2013-2014 school year, 22
the sum of the following: 23
a. The salary the teacher received in the 2013-2014 school year pursuant 24
to Section 35.11 of S.L. 2013-360. 25
b. The longevity that the teacher would have received under the longevity 26
system in effect for the 2013-2014 school year provided in Section 27
35.11 of S.L. 2013-360 based on the teacher's current years of service. 28
c. The annual bonus provided in Section 9.1(e) of S.L. 2014-100. 29
(3) For teachers who were not eligible for longevity for the 2013-2014 school 30
year, the sum of the salary and annual bonus the teacher received in the 31
2014-2015 school year pursuant to Section 9.1 of S.L. 2014-100. 32
SECTION 1.17.(f) As used in this section, the term "teacher" shall also include 33
instructional support personnel. 34
SECTION 1.17.(g) There is appropriated from the General Fund to the Department 35
of Public Instruction for the 2025-2026 fiscal year the sum of eight hundred seventy-two million 36
six hundred forty-two thousand three hundred thirty-six dollars ($872,642,336) in recurring funds 37
to implement the teacher raises provided in this section. 38
SECTION 1.17.(h) It is the intent of the General Assembly to adjust compensation 39
for teachers in the 2026-2027 fiscal year and subsequent fiscal years in accordance with 40
information provided by the Department of Public Instruction in March of 2026 pursuant to the 41
compensation study referenced in Section 1.16 of this act. 42
43
FUNDS FOR NATIONAL BOARD CERTIFICATION APPLICATION FEE 44
SECTION 1.18. There is appropriated from the General Fund to the Department of 45
Public Instruction the sum of nine hundred thousand dollars ($900,000) in recurring funds for the 46
2025-2026 fiscal year to provide additional grants for reimbursement of the cost of the 47
participation fee for National Board for Professional Teaching Standards (NBPTS) certification 48
pursuant to G.S. 115C-296.2A. 49
50 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 15
PART II. WELL-PREPARED, HIGH-QUALITY, AND SUPPORTED PRINCIPA L IN 1
EVERY SCHOOL 2
3
EXPANSION OF THE NORTH CAROLINA PRINCIPAL FELLOWS PROGRAM 4
SECTION 2.1. There is appropriated from the General Fund to the North Carolina 5
Principal Fellows Trust Fund the sum of thirteen million two hundred thousand dollars 6
($13,200,000) in recurring funds for the 2025-2026 fiscal year to be used to provide forgivable 7
loans to an additional 189 new principal candidates each year through principal preparation 8
programs provided grants under the North Carolina Principal Fellows Program (Program) 9
established pursuant to Article 5C of Chapter 116 of the General Statutes. Any unexpended funds 10
in the Trust Fund each fiscal year shall not revert to the General Fund but shall remain available 11
for the purposes of the Program consistent with G.S. 116-74.41B. 12
13
STATEWIDE SCHOOL LEADERSHIP ACADEMY 14
SECTION 2.2.(a) The State Board of Education shall develop a plan for the creation 15
of a School Leadership Academy to provide initial and ongoing support to the State's local school 16
administrative units and school leaders. The plan for the School Leadership Academy shall 17
include at least the following components: 18
(1) Equity training for all local school administrative units and school leaders. 19
(2) Training and ongoing support for local board of education members focused 20
on the needs of successful schools and turnaround schools. 21
(3) Mentorship and individualized coaching for novice principals and for 22
experienced principals in high-need schools focused on dismantling 23
impediments to student success in their schools. 24
(4) Peer support networks, such as facilitated partnership networks and rapid 25
response hotlines that provide immediate assistance. 26
(5) Aligned, ongoing, research-driven professional learning. 27
The State Board shall take into consideration any existing school administrator 28
leadership training opportunities when creating this plan. 29
SECTION 2.2.(b) By February 15, 2026, the State Board shall report to the Joint 30
Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 31
State Budget and Management on its proposal for the School Leadership Academy, including the 32
plan for implementation and an estimation of costs. 33
SECTION 2.2.(c) Beginning with the 2026-2027 school year, the Department of 34
Public Instruction shall operate and support the School Leadership Academy according to the 35
plan developed by the State Board of Education pursuant to subsection (a) of this section. 36
37
PRINCIPAL SALARY SCHEDULE 38
SECTION 2.3.(a) The following annual salary schedule for principals shall apply 39
for the 2025-2026 fiscal year beginning July 1, 2025: 40
2025-2026 Principal Annual Salary Schedule 41
Avg. Daily Membership Base Met Growth Exceeded Growth 42
0-200 $84,676 $93,143 $101,612 43
201-400 $88,910 $97,801 $106,691 44
401-700 $93,143 $102,457 $111,773 45
701-1,000 $97,377 $107,115 $116,853 46
1,001-1,600 $101,612 $111,773 $121,933 47
1,601+ $105,845 $116,429 $127,013 48
A principal's placement on the salary schedule shall be determined according to the 49
average daily membership of the school supervised by the principal, as described in subsection 50
(b) of this section, and the school growth scores, calculated pursuant to G.S. 115C-83.15(c), for 51 General Assembly Of North Carolina Session 2025
Page 16 House Bill 420-First Edition
each school the principal supervised in one or more prior school years, as described in subsection 1
(c) of this section, regardless of a break in service, and provided the principal supervised each 2
school as a principal for at least a majority of the school year, as follows: 3
(1) A principal shall be paid according to the Exceeded Growth column of the 4
schedule as follows: 5
a. For the first six months of the applicable fiscal year, if the higher 6
school growth score in one of the two prior school years shows that 7
the school exceeded expected growth. 8
b. For the second six months of the applicable fiscal year, if the school 9
growth scores show that the school or schools exceeded expected 10
growth in at least two of the prior three school years. 11
(2) A principal shall be paid according to the Met Growth column of the schedule 12
as follows: 13
a. For the first six months of the applicable fiscal year, if any of the 14
following apply: 15
1. The higher school growth score in one of the two prior school 16
years shows that the school met expected growth. 17
2. The principal supervised a school in the two prior school years 18
that was not eligible to receive a school growth score. 19
b. For the second six months of the applicable fiscal year, if any of the 20
following apply: 21
1. The school growth scores show that the school or schools met 22
expected growth in at least two of the prior three school years. 23
2. The school growth scores show that the school or schools met 24
expected growth in at least one of the prior three school years 25
and exceeded expected growth in one of the prior three school 26
years. 27
3. The principal supervised a school in at least two of the prior 28
three school years that was not eligible to receive a school 29
growth score. 30
(3) A principal shall be paid according to the Base column as follows: 31
a. For the first six months of the applicable fiscal year, if any of the 32
following apply: 33
1. The school growth scores from the two prior school years show 34
that the school did not meet expected growth in both years. 35
2. The principal has not supervised any school as a principal for 36
a majority of the two prior school years. 37
b. For the second six months of the applicable fiscal year, if any of the 38
following apply: 39
1. The school growth scores show that the school or schools did 40
not meet expected growth in at least two of the prior three 41
school years. 42
2. The principal has not supervised any school as a principal for 43
a majority of the school year in at least two of the prior three 44
school years. 45
SECTION 2.3.(b) For purposes of determining the average daily membership of a 46
principal's school, the following shall apply: 47
(1) The following amounts shall be used during the following time periods: 48
a. For the first six months of the applicable fiscal year, the average daily 49
membership for the school from the third year. If the school did not 50
have an average daily membership in the third year, the projected 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 17
average daily membership for the school for the applicable school 1
year. 2
b. For the second six months of the applicable fiscal year, the average 3
daily membership for the school for the applicable school year. 4
(2) The average daily membership of a principal's school shall include any 5
prekindergarten students in membership at that school. 6
SECTION 2.3.(c) For purposes of determining the school growth scores for each 7
school the principal supervised in one or more prior school years, the following school growth 8
scores shall be used during the following time periods: 9
(1) For the first six months of the applicable fiscal year, the school growth scores 10
from the first and second years. 11
(2) For the second six months of the applicable fiscal year, the school growth 12
scores from the first, second, and third years. If a principal does not have a 13
school growth score from any of the school years identified in this subdivision, 14
the most recent available growth scores, up to the third year, shall be used. 15
SECTION 2.3.(d) Beginning with the 2017-2018 fiscal year, in lieu of providing 16
annual longevity payments to principals paid on the principal salary schedule, the amounts of 17
those longevity payments are included in the annual amounts under the principal salary schedule. 18
SECTION 2.3.(e) A principal compensated in accordance with this section for the 19
applicable fiscal year shall receive an amount equal to the greater of the following: 20
(1) The applicable amount on the salary schedule for the applicable fiscal year. 21
(2) For principals who were eligible for longevity in the 2016-2017 fiscal year, 22
the sum of the following: 23
a. The salary the principal received in the 2016-2017 fiscal year pursuant 24
to Section 9.1 or Section 9.2 of S.L. 2016-94. 25
b. The longevity that the principal would have received as provided for 26
State employees under the North Carolina Human Resources Act for 27
the 2016-2017 fiscal year based on the principal's current years of 28
service. 29
(3) For principals who were not eligible for longevity in the 2016-2017 fiscal 30
year, the salary the principal received in the 2016-2017 fiscal year pursuant to 31
Section 9.1 or Section 9.2 of S.L. 2016-94. 32
SECTION 2.3.(f) For purposes of this section, the following definitions apply: 33
(1) First year. – The school year immediately preceding the second year. 34
(2) Second year. – The school year immediately preceding the third year. 35
(3) The applicable fiscal year. – The 2025-2026 fiscal year. 36
(4) The applicable school year. – The 2025-2026 school year. 37
(5) Third year. – The school year immediately preceding the applicable school 38
year. 39
SECTION 2.3.(g) There is appropriated from the General Fund to the Department 40
of Public Instruction for the 2025-2026 fiscal year the sum of twenty-six million four hundred 41
thirty-six thousand one hundred eighty dollars ($26,436,180) in recurring funds to increase 42
salaries for principals in accordance with this section. 43
SECTION 2.3.(h) It is the intent of the General Assembly to adjust compensation 44
for principals in the 2025-2026 fiscal year and subsequent fiscal years in accordance with any 45
information provided by the Department of Public Instruction in March of 2026 pursuant to the 46
compensation study referenced in Section 1.16 of this act. 47
48
ASSISTANT PRINCIPAL SALARIES 49
SECTION 2.4.(a) For the 2025-2026 fiscal year, beginning July 1, 2025, assistant 50
principals shall receive a monthly salary based on the salary schedule for teachers who are 51 General Assembly Of North Carolina Session 2025
Page 18 House Bill 420-First Edition
classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on 1
the step on the salary schedule that reflects the total number of years of experience as a certified 2
employee of the public schools. For purposes of this section, an administrator with a one-year 3
provisional assistant principal's certificate shall be considered equivalent to an assistant principal. 4
SECTION 2.4.(b) Assistant principals with certification based on academic 5
preparation at the six-year degree level shall be paid a salary supplement of one hundred 6
twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary 7
supplement of two hundred fifty-three dollars ($253.00) per month. 8
SECTION 2.4.(c) Participants in an approved full-time master's in school 9
administration program shall receive up to a 10-month stipend during the internship period of the 10
master's program. The stipend shall be at the beginning salary of an assistant principal or, for a 11
teacher who becomes an intern, at least as much as that person would earn as a teacher on the 12
teacher salary schedule. The North Carolina Principal Fellows Program or the school of education 13
where the intern participates in a full-time master's in school administration program shall supply 14
the Department of Public Instruction with certification of eligible full-time interns. 15
SECTION 2.4.(d) Beginning with the 2017-2018 fiscal year, in lieu of providing 16
annual longevity payments to assistant principals on the assistant principal salary schedule, the 17
amounts of those longevity payments are included in the monthly amounts provided to assistant 18
principals pursuant to subsection (a) of this section. 19
SECTION 2.4.(e) An assistant principal compensated in accordance with this section 20
for the 2025-2026 fiscal year shall receive an amount equal to the greater of the following: 21
(1) The applicable amount on the salary schedule for the applicable year. 22
(2) For assistant principals who were eligible for longevity in the 2016-2017 fiscal 23
year, the sum of the following: 24
a. The salary the assistant principal received in the 2016-2017 fiscal year 25
pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 26
b. The longevity that the assistant principal would have received as 27
provided for State employees under the North Carolina Human 28
Resources Act for the 2016-2017 fiscal year based on the assistant 29
principal's current years of service. 30
(3) For assistant principals who were not eligible for longevity in the 2016-2017 31
fiscal year, the salary the assistant principal received in the 2016-2017 fiscal 32
year pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 33
SECTION 2.4.(f) There is appropriated from the General Fund to the Department of 34
Public Instruction for the 2025-2026 fiscal year the sum of twenty-two million eight hundred 35
sixty-two thousand nine hundred eighty-four dollars ($22,862,984) in recurring funds to increase 36
salaries for assistant principals in accordance with this section. 37
SECTION 2.4.(g) It is the intent of the General Assembly to adjust compensation 38
for assistant principals in the 2026-2027 fiscal year and subsequent fiscal years in accordance 39
with any information provided by the Department of Public Instruction in March of 2026 40
pursuant to the compensation study referenced in Section 1.16 of this act. 41
42
PLAN FOR SCHOOL -BASED ADMINISTRATOR GRANT PROGRAM 43
SECTION 2.5.(a) No later than March 15, 2026, the State Board of Education shall 44
develop and report to the Joint Legislative Education Oversight Committee and the Fiscal 45
Research Division a plan to implement and evaluate the effectiveness of incentive programs to 46
encourage well-qualified principals and assistant principals to work in high-need schools. These 47
programs may include salary supplements for principals who take positions in chronically 48
low-performing schools, protection for principals against salary reduction for working in 49
high-need or low-performing schools, and rewards for principals and assistant principals for 50
making progress on school performance. 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 19
SECTION 2.5.(b) It is the intent of the General Assembly to implement advisable 1
components of the plan developed pursuant to subsection (a) of this section. 2
3
RECOMMENDATIONS FOR ADDITIONAL AUTONOMY AND RESOURCES FOR 4
PRINCIPALS AND SUPERINTENDENTS IN LOCAL SCHOOL ADMINISTRATIVE 5
UNITS 6
SECTION 2.6.(a) No later than November 15, 2026, the Department of Public 7
Instruction shall survey local school administrative units on recommendations to increase 8
autonomy and resources for principals and superintendents. No later than February 15, 2027, the 9
Department shall compile responses from this survey and report them to the Joint Legislative 10
Education Oversight Committee and the Fiscal Research Division. 11
SECTION 2.6.(b) It is the intent of the General Assembly to implement advisable 12
recommendations submitted to the Department pursuant to subsection (a) of this section in the 13
2027-2028 fiscal year and subsequent fiscal years. 14
15
PART III. FINANCE SYSTEM THAT PROVIDES A DEQUATE, EQUITABLE, AND 16
EFFICIENT RESOURCES 17
18
BUDGET FLEXIBILITY FOR LOCAL BOARDS OF EDUCATION 19
SECTION 3.1.(a) G.S. 115C-105.25(b) reads as rewritten: 20
"(b) Subject to the following limitations, local boards of education may transfer and may 21
approve transfers of funds between funding allotment categories: 22
(1) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 23
(1a) Funds for career and technical education and other purposes may be 24
transferred only as permitted by federal law and the conditions of federal 25
grants or as provided through any rules that the State Board of Education 26
adopts to ensure compliance with federal regulations. 27
(1b) No funds shall be transferred out of the children with disabilities allotment 28
category. 29
(2), (2a) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 30
(3) No funds shall be transferred into the central office administration allotment 31
category. 32
(3a) No funds shall be transferred out of the teacher assistants allotment category. 33
(3b) No funds shall be transferred out of the academically or intellectually gifted 34
children allotment category. 35
(4), (5) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 36
(5a) No positions shall be transferred out of the allocation for classroom teachers 37
for kindergarten through twelfth grade, except as provided in this subdivision. 38
Positions allocated for classroom teachers may be converted to dollar 39
equivalents to contract for visiting international exchange teachers through a 40
visiting international exchange teacher program approved by the State. These 41
positions shall be converted at the statewide average salary for classroom 42
teachers, including benefits. The converted funds shall be used only to provide 43
visiting international exchange teachers with salaries commensurate with their 44
experience levels, to provide any State-approved bonuses, and to cover the 45
costs associated with supporting visiting international exchange teachers 46
within the local school administrative unit, including programming and 47
related activities, background checks, medical coverage, and other program 48
administration services in accordance with the federal regulations for the 49
Exchange Visitor Program, 22 C.F.R. Part 62. 50 General Assembly Of North Carolina Session 2025
Page 20 House Bill 420-First Edition
(5b) Positions allocated Except as provided in subdivision (5a) of this subsection, 1
positions allocated for classroom teachers and for instructional support 2
personnel may be converted to dollar equivalents for any purpose authorized 3
by the policies of the State Board of Education. These positions shall be 4
converted at the salary on the first step of the "A" Teachers Salary Schedule. 5
Certified position allotments shall not be transferred to dollars to hire the same 6
type of position. 7
(5c) Funds allocated for school building administration may be converted for any 8
purpose authorized by the policies of the State Board of Education. For funds 9
related to principal positions, the salary transferred shall be based on the first 10
step of the Base column of the Principal Salary Schedule. For funds related to 11
assistant principal months of employment, the salary transferred shall be based 12
on the first step of the "A" Teachers Salary Schedule at the salary level for 13
assistant principals. Certified position allotments shall not be transferred to 14
dollars to hire the same type of position. 15
(5d) No positions shall be transferred out of the allocation for program 16
enhancement teachers for kindergarten through fifth grade except as provided 17
in this subdivision. Positions allocated for program enhancement teachers for 18
kindergarten through fifth grade may be converted into positions allocated for 19
classroom teachers for kindergarten through twelfth grade. For the purposes 20
of this subdivision, the term "program enhancement" is as defined in 21
G.S. 115C-301(c2). 22
(6) through (9) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 23
2013. 24
(10) Funds to carry out the elements of the Excellent Public Schools Act that are 25
contained in Section 7A.1 of S.L. 2012-142 shall not be transferred. 26
(10a) No funds shall be transferred out of the limited English proficiency allotment 27
category. 28
(11) No funds shall be transferred into or out of the driver education allotment 29
category. 30
(12) Funds allotted for textbooks and digital resources may only be used for the 31
purchase of textbooks and digital resources. These funds shall not be 32
transferred out of the allotment for any other purpose. 33
(13) No positions shall be transferred out of the allocation for school health 34
personnel except as provided in this subdivision. Positions allocated for school 35
health personnel may be converted to dollar equivalents for contracted 36
services directly related to school psychology, school counseling, school 37
nursing, and school social work. These positions shall be converted at the 38
minimum salary for the position on the "A" Teachers Salary Schedule." 39
SECTION 3.1.(b) This section applies beginning with the 2025-2026 school year. 40
41
FUNDS FOR CHILDREN WITH DISABILITIES 42
SECTION 3.2.(a) G.S. 115C-111.05, as enacted by Section 7.1 of S.L. 2023-134, 43
reads as rewritten: 44
"§ 115C-111.05. Funding for children with disabilities. 45
To the extent funds are made available for this purpose, the State Board shall allocate funds 46
for children with disabilities to each local school administrative unit on a per child basis. Each 47
local school administrative unit shall receive funds for the lesser of (i) all children who are 48
identified as children with disabilities or (ii) thirteen percent (13%) of its allocated average daily 49
membership in the local school administrative unit for the current school year.on the basis of the 50
reported cost of the services provided." 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 21
SECTION 3.2.(b) There is appropriated from the General Fund to the Department 1
of Public Instruction the sum of three hundred fifty-one million nine hundred twenty-four 2
thousand two hundred seventy-three dollars ($351,924,273) in recurring funds for the 2025-2026 3
fiscal year and four hundred fifty million three hundred twenty-four thousand two hundred 4
seventy-three dollars ($450,324,273) in recurring funds for the 2026-2027 fiscal year to 5
implement the plan for weighted funding for children with disabilities on the basis of the reported 6
cost of services provided developed by the Department of Public Instruction pursuant to Section 7
7.7 of S.L. 2023-134. The Department shall begin distributing funds for children with disabilities 8
based on this model beginning with the 2025-2026 school year. 9
10
REVISE SUPPLEMENTAL FUNDING IN LOW -WEALTH COUNTIES 11
SECTION 3.3.(a) Subsections (d) and (e) of G.S. 115C-472.22 read as rewritten: 12
"(d) Allocation of Funds. – Except as provided in subsection (f) of this section, the amount 13
received per average daily membership for a county shall be the difference between one hundred 14
ten percent (110%) of the State average current expense appropriations per student and the 15
current expense appropriations per student that the county could provide given the county's 16
wealth and an average effort to fund public schools. To derive the current expense appropriations 17
per student that the county could be able to provide given the county's wealth and an average 18
effort to fund public schools, multiply the county's wealth as a percentage of State average wealth 19
by the State average current expense appropriations per student. The funds for the local school 20
administrative units located in whole or in part in the county shall be allocated to each local 21
school administrative unit located in whole or in part in the county based on the average daily 22
membership of the county's students in the school units. If the funds appropriated for 23
supplemental funding are not adequate to fund the formula fully, each local school administrative 24
unit shall receive a pro rata share of the funds appropriated for supplemental funding. 25
(e) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – 26
The formula in this section is solely a basis for distribution of supplemental funding for 27
low-wealth counties and is not intended to reflect any measure of the adequacy of the educational 28
program or funding for public schools. The formula is also not intended to reflect any 29
commitment by the General Assembly to appropriate any additional supplemental funds for low-30
wealth counties.counties. It is the intent of the General Assembly to incrementally increase 31
appropriations for the low-wealth allotment to provide eligible counties supplemental funding 32
equal to one hundred ten percent (110%) of the statewide local revenue per student by fiscal year 33
2027-2028. The State Board of Education shall adjust the formula to ensure each local school 34
administrative unit receives a pro rata share of the additional funds appropriated for the 35
low-wealth allotment in this section for supplemental funding." 36
SECTION 3.3.(b) There is appropriated from the General Fund to the Department 37
of Public Instruction the sum of one hundred twenty-five million six hundred thousand dollars 38
($125,600,000) in recurring funds for the 2025-2026 fiscal year and one hundred sixty-five 39
million one hundred thousand dollars ($165,100,000) in recurring funds for the 2026-2027 fiscal 40
year to implement the changes to the low-wealth allotment in this section. 41
42
FUNDING FOR LIMITED ENGLISH PROFICIENCY STUDENTS 43
SECTION 3.4.(a) The State Board of Education shall allocate additional funds for 44
services to students with limited proficiency in the English language to local school 45
administrative units and to charter schools based on the three-year weighted headcount of 46
students in the units or charter schools with limited English proficiency pursuant to Section 7.9(a) 47
of S.L. 2007-323. The State Board of Education shall adopt formulas for computing the 48
allotments that do not include a cap on funds allocated. 49
SECTION 3.4.(b) There is appropriated from the General Fund to the Department 50
of Public Instruction the sum of one hundred forty million seven hundred thousand dollars 51 General Assembly Of North Carolina Session 2025
Page 22 House Bill 420-First Edition
($140,700,000) in recurring funds for the 2025-2026 fiscal year and one hundred eighty-one 1
million dollars ($181,000,000) in recurring funds for the 2026-2027 fiscal year to implement this 2
section. 3
4
TEACHER ASSISTANT ALLOTMENT 5
SECTION 3.5.(a) Section 8.47(b) of S.L. 2015-241 is repealed. 6
SECTION 3.5.(b) Article 21 of Chapter 115C of the General Statutes is amended by 7
adding a new section to read: 8
"§ 115C-316.6. Teacher assistant allotment. 9
(a) To the extent funds are made available, the State Board of Education shall establish a 10
funding allotment for teacher assistant positions. The State Board is authorized to adopt rules for 11
the allocation of teacher assistant positions pursuant to this allotment. Funds allocated pursuant 12
to this section shall be distributed based on the following: 13
(1) An estimated statewide average salary and benefits per teacher assistant 14
position. 15
(2) The requirements of subsection (d) of this section. 16
(b) Beginning with the 2025-2026 fiscal year, there is appropriated from the General 17
Fund to the Department of Public Instruction for the following fiscal years the following amounts 18
to the teacher assistant allotment: 19
Fiscal Year Appropriation 20
2025-2026 $142,600,000 21
2026-2027 $180,100,000 22
2027-2028 and each subsequent fiscal year thereafter $217,700,000 23
(c) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 24
specified in subsection (b) of this section, the Director of the Budget shall include the 25
appropriated amount for that fiscal year. 26
(d) Funds appropriated pursuant to subsection (b) of this section shall be allocated to local 27
school administrative units to increase positions for teacher assistants in the following fiscal years 28
to the following statewide ratios of teacher assistants to students in kindergarten through grade 29
three: 30
Fiscal Year Teacher Assistants 31
2025-2026 1:33 32
2026-2027 1:30 33
2027-2028 and each subsequent fiscal year thereafter 1:27." 34
35
INCREASE FUNDING FOR INSTRUCTIONAL SUPPORT PERSONNEL 36
SECTION 3.6.(a) G.S. 115C-316.5 reads as rewritten: 37
"§ 115C-316.5. School health personnel allotment. 38
(a) For the purposes of this section, the term "school health personnel" refers to the same 39
positions listed in G.S. 115C-316.2(a). 40
(b) To the extent funds are made available, the The State Board of Education shall 41
establish a funding allotment for school health personnel positions. There is appropriated from 42
the General Fund to the Department of Public Instruction to fund the allotment the following 43
amounts in the fiscal years identified: 44
Fiscal Year Appropriation 45
2025-2026 $447,900,000 46
2026-2027 $518,300,000 47
2027-2028 and each subsequent fiscal year thereafter $647,900,000 48
(b1) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 49
specified in subsection (b) of this section, the Director of the Budget shall include the 50
appropriated amount for that fiscal year. 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 23
(b2) The State Board is authorized to shall adopt rules for the allocation of school health 1
personnel positions pursuant to this allotment. Rules adopted by the State Board pursuant to this 2
section shall include, at a minimum, the following requirements: 3
(1) School health personnel positions are allocated on the basis of average daily 4
membership. 5
(2) Each local school administrative unit receives sufficient funding for at least 6
one school psychologist position.to fulfill the position-to-student ratios 7
identified in subsection (c) of this section. 8
(3) Local school administrative units are encouraged to fill positions under this 9
allotment with full-time, permanent employees. If the local school 10
administrative unit is unable to fill these positions by hiring a full-time, 11
permanent employee, the allocation for the position may be converted to a 12
dollar equivalent for the unit to contract with a third party to provide the 13
relevant services for an amount of hours equivalent to the hours a full-time 14
position employee would provide. 15
(c) Local school administrative units shall increase school health personnel positions 16
each fiscal year until the 2028-2029 fiscal year at the following position-to-student ratios: 17
Fiscal Year Nurses Counselors Social Workers Psychologists 18
2025-2026 1:766 1:306 1:651 1:1,198 19
2026-2027 1:657 1:275 1:496 1:885 20
2027-2028 21
and each subsequent 22
fiscal year thereafter 1:574 1:250 1:400 1:700." 23
SECTION 3.6.(b) Article 21 of Chapter 115C of the General Statutes is amended by 24
adding a new section to read: 25
"§ 115C-316.7. Instructional support allotment. 26
(a) Beginning with the 2025-2026 fiscal year, there is appropriated from the General 27
Fund to the Department of Public Instruction for the following fiscal years the following amounts 28
to the instructional support allotment: 29
Fiscal Year Appropriation 30
2025-2026 $19,045,331 31
2026-2027 $38,090,661 32
2027-2028 and each subsequent fiscal year thereafter $57,713,123 33
(b) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 34
specified in subsection (a) of this section, the Director of the Budget shall include the 35
appropriated amount for that fiscal year. 36
(c) Funds appropriated pursuant to subsection (a) of this section shall be allocated to local 37
school administrative units to increase instructional support personnel positions each fiscal year 38
until the 2028-2029 fiscal year at the following position-to-student ratios: 39
Fiscal Year Media Coordinators 40
2025-2026 1:684 41
2026-2027 1:608 42
2027-2028 and each subsequent fiscal year thereafter 1:547." 43
44
CONSOLIDATE ALLOTMENTS INTO A SINGLE ALLOTMENT 45
SECTION 3.7. The Department of Public Instruction shall report to the Joint 46
Legislative Education Oversight Committee on a method to combine all dollar allotments 47
currently distributed on the basis of average daily membership into a single allotment. The 48
Department shall submit the report no later than February 15, 2026. 49
50
INCREASE ALLOTTED ASSISTANT PRINCIPAL MONTHS OF EMPLOYMENT 51 General Assembly Of North Carolina Session 2025
Page 24 House Bill 420-First Edition
SECTION 3.8. There is appropriated from the General Fund to the Department of 1
Public Instruction the recurring sum of eighteen million six hundred thousand dollars 2
($18,600,000) in the 2025-2026 fiscal year and the recurring sum of twenty-four million eight 3
hundred thousand dollars ($24,800,000) in the 2026-2027 fiscal year to increase the school 4
building administration allotment. These funds shall be used to increase the ratio of assistant 5
principals to students in all local school administrative units. 6
7
INCREASE FUNDING FOR CENTRAL OFFICE STAFF 8
SECTION 3.9. There is appropriated from the General Fund to the Department of 9
Public Instruction the recurring sum of twenty-one million seven hundred two thousand sixty-one 10
dollars ($21,702,061) in the 2025-2026 fiscal year and the recurring sum of twenty-nine million 11
three hundred fifty-five thousand three hundred fifty-five dollars ($29,355,355) in the 2026-2027 12
fiscal year to increase the central office administration allotment. These funds shall be used to 13
support additional personnel and services provided by central office staff in local school 14
administrative units. 15
16
CENTRAL OFFICE SALARIES 17
SECTION 3.10.(a) The monthly salary maximums that follow apply to assistant 18
superintendents, associate superintendents, directors/coordinators, supervisors, and finance 19
officers for the 2025-2026 fiscal year beginning July 1, 2025: 20
2025-2026 Fiscal Year 21
Maximum 22
School Administrator I $7,754 23
School Administrator II $8,216 24
School Administrator III $8,707 25
School Administrator IV $9,046 26
School Administrator V $9,407 27
School Administrator VI $9,966 28
School Administrator VII $10,363 29
The local board of education shall determine the appropriate category and placement 30
for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or 31
finance officer within the maximums and within funds appropriated by the General Assembly 32
for central office administrators and superintendents. The category in which an employee is 33
placed shall be included in the contract of any employee. 34
SECTION 3.10.(b) The monthly salary maximums that follow apply to 35
superintendents for the 2025-2026 fiscal year beginning July 1, 2025: 36
2025-2026 Fiscal Year 37
Maximum 38
Superintendent I $10,985 39
Superintendent II $11,640 40
Superintendent III $12,338 41
Superintendent IV $13,080 42
Superintendent V $13,867 43
The local board of education shall determine the appropriate category and placement 44
for the superintendent based on the average daily membership of the local school administrative 45
unit and within funds appropriated by the General Assembly for central office administrators and 46
superintendents. 47
SECTION 3.10.(c) Longevity pay for superintendents, assistant superintendents, 48
associate superintendents, directors/coordinators, supervisors, and finance officers shall be as 49
provided for State employees under the North Carolina Human Resources Act. 50 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 25
SECTION 3.10.(d) Superintendents, assistant superintendents, associate 1
superintendents, directors/coordinators, supervisors, and finance officers with certification based 2
on academic preparation at the six-year degree level shall receive a salary supplement of one 3
hundred twenty-six dollars ($126.00) per month in addition to the compensation provided 4
pursuant to this section. Superintendents, assistant superintendents, associate superintendents, 5
directors/coordinators, supervisors, and finance officers with certification based on academic 6
preparation at the doctoral degree level shall receive a salary supplement of two hundred 7
fifty-three dollars ($253.00) per month in addition to the compensation provided for under this 8
section. 9
SECTION 3.10.(e) The State Board of Education shall not permit local school 10
administrative units to transfer State funds from other funding categories for salaries for public 11
school central office administrators. 12
13
ESTABLISH MECHANISM TO CONTINUALLY UPDATE STATE SPENDING FOR 14
INFLATION AND ENROLLMENT GROWTH 15
SECTION 3.11. The Department of Public Instruction, when submitting budget 16
adjustment requests to the General Assembly and the Office of State Budget and Management, 17
shall include adjustments for inflation and other rising costs associated with providing a sound 18
basic education. 19
20
APPROPRIATE FUNDS DIRECTLY TO CHARTER SCHOOLS 21
SECTION 3.12.(a) G.S. 115C-218.105 reads as rewritten: 22
"§ 115C-218.105. State and local funds for a charter school. 23
(a) The State Board of Education shall allocate to each charter school: 24
(1) An amount equal to the average per pupil allocation for average daily 25
membership from the local school administrative unit allotments for the local 26
school administrative unit in which the charter school is located for each child 27
attending the charter school except for the allocation for children with 28
disabilities and for the allocation for children with limited English 29
proficiency;school. 30
(2) An additional amount for each child attending the charter school who is a child 31
with disabilities; anddisabilities. 32
(3) An additional amount for children with limited English proficiency attending 33
the charter school, based on a formula adopted by the State Board. 34
In accordance with G.S. 115C-218.7 and G.S. 115C-218.8, the State Board shall allow for 35
annual adjustments to the amount allocated to a charter school based on its enrollment growth in 36
school years subsequent to the initial year of operation. 37
In the event a child with disabilities leaves the charter school and enrolls in a public school 38
during the first 60 school days in the school year, the charter school shall return a pro rata amount 39
of funds allocated for that child to the State Board, and the State Board shall reallocate those 40
funds to the local school administrative unit in which the public school is located. In the event a 41
child with disabilities enrolls in a charter school during the first 60 school days in the school year, 42
the State Board shall allocate to the charter school the pro rata amount of additional funds for 43
children with disabilities. 44
… 45
(b1) Counties may provide direct capital funds to charter schools by direct appropriation 46
as set forth in G.S. 153A-461. These funds shall be used only for the following purposes: 47
… 48
(b2) If a charter school uses funds provided in receives direct capital funds under 49
subsection (b1) of this section to acquire or improve property, the amount provided by the county 50
shall be evidenced by a promissory note and secured by a deed of trust on the property acquired 51 General Assembly Of North Carolina Session 2025
Page 26 House Bill 420-First Edition
or improved by the funds. The county may subordinate the deed of trust to other liens to facilitate 1
the acquisition or improvement of the property secured by the deed of trust. In the event that a 2
charter school repays the county in the amount of the capital funds provided, the county shall, 3
for the property acquired or improved by the funds, execute and file a deed of release or other 4
documentation of satisfaction showing the charter school repaid the county in the amount of the 5
capital funds provided. 6
(b3) For each child attending a charter school, the county in which the child resides shall 7
allocate to the charter school an amount equal to the average per pupil allocation for average 8
daily membership, as determined in accordance with G.S. 115C-430. 9
(b4) Counties shall allocate funds to charter schools in accordance with G.S. 115C-437. 10
…." 11
SECTION 3.12.(b) G.S. 115C-218.105(c) through G.S. 115C-218.105(e) are 12
repealed. 13
SECTION 3.12.(c) G.S. 115C-423 reads as rewritten: 14
"§ 115C-423. Definitions. 15
The words and phrases defined in this section have the meanings indicated when used in this 16
Article, unless the context clearly requires another meaning: 17
(1) "Budget" is a Budget. – A plan proposed by a board of education for raising 18
and spending money for specified school programs, functions, activities, or 19
objectives during a fiscal year. 20
(2) "Budget resolution" is a Budget resolution. – A resolution adopted by a board 21
of education that appropriates revenues for specified school programs, 22
functions, activities, or objectives during a fiscal year. 23
(3) "Budget year" is the Budget year. – The fiscal year for which a budget is 24
proposed and a budget resolution is adopted. 25
(4) "Fiscal year" is the Fiscal year. – The annual period for the compilation of 26
fiscal operations. The fiscal year begins on July 1 and ends on June 30. 27
(5) "Fund" is an Fund. – An independent fiscal and accounting entity consisting 28
of cash and other resources together with all related liabilities, obligations, 29
reserves, and equities which are segregated by appropriate accounting 30
techniques for the purpose of carrying on specific activities or attaining certain 31
objectives in accordance with established legal regulations, restrictions or 32
limitations. 33
(6) Local schools. – All local school administrative units located in a county, plus 34
any charter schools that are attended by children residing in the county. 35
(7) "Vending facilities" has the same meaning as it does in Vending facilities. – 36
As defined in G.S. 111-42(d), but also means any mechanical or electronic 37
device dispensing items or something of value or entertainment or services for 38
a fee, regardless of the method of activation, and regardless of the means of 39
payment, whether by coin, currency, tokens, or other means." 40
SECTION 3.12.(d) G.S. 115C-430 reads as rewritten: 41
"§ 115C-430. Apportionment of county appropriations among local school administrative 42
units.schools. 43
If there is more than one local school administrative unit in a county, all All appropriations 44
by the county to the local current expense funds of the units, schools, except appropriations 45
funded by supplemental taxes levied less than countywide pursuant to a local act of 46
G.S. 115C-501 to 115C-511, must be apportioned according to the membership of each unit. 47
average daily membership. County appropriations are properly apportioned when the dollar 48
amount obtained by dividing the amount so appropriated to each unit appropriated to each local 49
school administrative unit in the county and each charter school a resident child is attending by 50
the total membership of the unit or number of resident charter school attendees is the same for 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 27
each unit. The total membership of the local school administrative unit is the unit's average same. 1
Average daily membership for the budget year to shall be determined by and certified to the unit 2
local schools and the board of county commissioners by the State Board of Education." 3
SECTION 3.12.(e) G.S. 115C-431 reads as rewritten: 4
"§ 115C-431. Procedure for resolution of dispute between board of education the governing 5
body of a local school and a board of county commissioners. 6
(a) If the board of education governing body of a local school determines that the amount 7
of money appropriated to the local current expense fund, or the capital outlay fund, or both, by 8
the board of county commissioners to a local school administrative unit or charter school is not 9
sufficient to support a system of free public schools, then the chairman of the board of education 10
governing body of the local school and the chairman of the board of county commissioners shall 11
arrange a joint meeting of the two boards to be held within seven days after the day of the county 12
commissioners' decision on the school appropriations. 13
Prior to the joint meeting, the Senior Resident Superior Court Judge shall appoint a mediator 14
unless the boards agree to jointly select a mediator. The mediator shall preside at the joint meeting 15
and shall act as a neutral facilitator of disclosures of factual information, statements of positions 16
and contentions, and efforts to negotiate an agreement settling the boards' differences. 17
At the joint meeting, the entire school budget shall be considered carefully and judiciously, 18
and the two boards shall make a good-faith attempt to resolve the differences that have arisen 19
between them. 20
(b) If no agreement is reached at the joint meeting of the two boards, the mediator shall, 21
at the request of either board, commence a mediation immediately or within a reasonable period 22
of time. The mediation shall be held in accordance with rules and standards of conduct adopted 23
under Chapter 7A of the General Statutes governing mediated settlement conferences but 24
modified as appropriate and suitable to the resolution of the particular issues in disagreement. 25
Unless otherwise agreed upon by both boards, the following individuals shall constitute the 26
two working groups empowered to represent their respective boards during the mediation: 27
(1) The chair of each board or the chair's designee;designee. 28
(2) The superintendent of the local school administrative unit or the chair of the 29
charter school board of directors, and the county manager manager, or either's 30
designee;any of their designees. 31
(3) The finance officer of each board; andboard. 32
(4) The attorney for each board. 33
Members of both the boards, their chairs, and representatives shall cooperate with and respond 34
to all reasonable requests of the mediator to participate in the mediation. Notwithstanding Article 35
33C of Chapter 143 of the General Statutes, the mediation proceedings involving the two working 36
groups shall be conducted in private. Evidence of statements made and conduct occurring in a 37
mediation are not subject to discovery and are inadmissible in any court action. However, no 38
evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a 39
mediation. The mediator shall not be compelled to testify or produce evidence concerning 40
statements made and conduct occurring in a mediation in any civil proceeding for any purpose, 41
except disciplinary hearings before the State Bar or any agency established to enforce standards 42
of conduct for mediators. Reports by members of either working group to their respective boards 43
shall be made in compliance with Article 33C of Chapter 143 of the General Statutes. 44
Unless both boards agree otherwise, or unless the boards have already resolved their dispute, 45
the mediation shall end no later than August 1. The mediator shall have the authority to determine 46
that an impasse exists and to discontinue the mediation. The mediation may continue beyond 47
August 1 provided both boards agree. If both boards agree to continue the mediation beyond 48
August 1, the board of county commissioners shall appropriate to the local school administrative 49
unit for deposit in the local current expense fund or to a charter school a sum of money sufficient 50
to equal the local contribution to this fund for the previous year. 51 General Assembly Of North Carolina Session 2025
Page 28 House Bill 420-First Edition
If the working groups reach a proposed agreement, the terms and conditions must be 1
approved by each board. If no agreement is reached, the mediator shall announce that fact to the 2
chairs of both boards, the Senior Resident Superior Court Judge, and the public. The mediator 3
shall not disclose any other information about the mediation. The mediator shall not make any 4
recommendations or public statement of findings or conclusions. 5
The local board of education governing body of the local school and the board of county 6
commissioners shall share equally the mediator's compensation and expenses. The mediator's 7
compensation shall be determined according to rules adopted under Chapter 7A of the General 8
Statutes. 9
(b1) If agreement is not reached in mediation on the amount of money appropriated to the 10
local current expense fund, fund or charter school, and the amount to be appropriated has not 11
been calculated pursuant to this subsection for longer than the prior year, the sum to be 12
appropriated for the budget year in dispute shall be calculated as follows: 13
(1) The amount of moneys appropriated to the local current expense fund by the 14
board of county commissioners in the prior fiscal year that are expended in 15
that year by the local school administrative unit or transferred as required by 16
G.S. 115C-75.10, 115C-218.105, 115C-238.70, and 116-239.11 shall be 17
divided by the sum of the following: the average daily membership of the local 18
school administrative unit plus the share of the average daily membership of 19
any innovative, charter, regional, or laboratory school whose students reside 20
in the local school administrative unit for the prior school year. For charter 21
schools, the amount of moneys appropriated to the charter school in the prior 22
fiscal year that are expended in that year divided by the average daily 23
membership of the charter school. 24
(2) The amount from subdivision (1) of this subsection, rounded to the nearest 25
penny, shall then be multiplied by the sum of one plus the twelve month 26
percent change in the second quarter Employment Cost Index for elementary 27
and secondary school workers as reported by the Federal Bureau of Labor 28
Statistics. 29
(3) The amount from subdivision (2) of this subsection, rounded to the nearest 30
penny, shall then be multiplied by the sum of the following: the allotted 31
average daily membership for the school year plus the share of the average 32
daily membership of any innovative, charter, regional, or laboratory school 33
whose students reside in the local school administrative unit for the budget 34
year in dispute. For charter schools, the amount shall be multiplied by the 35
allotted average daily membership for the school year. 36
The board of county commissioners shall appropriate to the local current expense fund or the 37
charter school the sum from subdivision (3) of this subsection, rounded to the nearest penny, to 38
the local board of education for the budget year in dispute. 39
(b2) If agreement is not reached in mediation, and the amount to be appropriated has been 40
calculated pursuant to subsection (b1) of this section to the local current expense fund for the 41
prior two years, the sum to be appropriated for the budget year in dispute shall be calculated as 42
follows: 43
(1) The amount of moneys appropriated to the local current expense fund by the 44
board of county commissioners in the prior fiscal year that are expended in 45
the prior fiscal year by the local school administrative unit and transferred as 46
required by G.S. 115C-75.10, 115C-218.105, 115C-238.70, and 116-239.11 47
shall be divided by the sum of the following: the average daily membership 48
plus the share of the average daily membership of any innovative, charter, 49
regional, or laboratory school whose students reside in the local school 50
administrative unit for the prior school year. For charter schools, the amount 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 29
of moneys appropriated to the charter school in the prior fiscal year that are 1
expended in that year divided by the average daily membership of the charter 2
school. 3
… 4
(4) The amount from subdivision (3) of this subsection shall then be multiplied 5
by the sum of the following: the allotted average daily membership for the 6
school year plus the share of the average daily membership of any innovative, 7
charter, regional, or laboratory school whose students reside in the local 8
school administrative unit for the budget year in dispute. For charter schools, 9
the amount shall be multiplied by the funded average daily membership for 10
the school year. 11
The board of county commissioners shall appropriate to the local current expense fund or to 12
the charter school the sum from subdivision (4) of this subsection, rounded to the nearest penny, 13
to the local board of education for the budget year in dispute. 14
(b3) Neither the local board of education governing body of the local school nor the board 15
of county commissioners shall file any legal action challenging the determination as to the funds 16
to be appropriated by the board of county commissioners to the local current expense fund in 17
accordance with under the formulas found in subsections (b1) and (b2) of this section. 18
…." 19
SECTION 3.12.(f) G.S. 115C-437 reads as rewritten: 20
"§ 115C-437. Allocation of revenues to the local school administrative unit by the 21
county.schools. 22
Revenues accruing to the local school administrative unit schools by virtue of Article IX, 23
Sec. 7, of the Constitution and taxes levied by or on behalf of the a local school administrative 24
unit pursuant to a local act or G.S. 115C-501 to 115C-511 shall be remitted to the school finance 25
officer by the officer having custody thereof within 10 days after the close of the calendar month 26
in which the revenues were received or collected. The clear proceeds of all penalties and 27
forfeitures and of all fines collected for any breach of the penal laws of the State, as referred to 28
in Article IX, Sec. 7 of the Constitution, shall include the full amount of all penalties, forfeitures 29
or fines collected under authority conferred by the State, diminished only by the actual costs of 30
collection, not to exceed ten percent (10%) of the amount collected. Revenues appropriated to 31
the local school administrative unit a local school by the board of county commissioners from 32
general county revenues shall be made available to the school finance officer by such procedures 33
as may be mutually agreeable to the board of education governing body of the local school and 34
the board of county commissioners, but if no such agreement is reached, these funds shall be 35
remitted to the school finance officer by the county finance officer in monthly installments 36
sufficient to meet its lawful expenditures from the county appropriation until the county 37
appropriation to the local school administrative unit is exhausted. Each installment shall be paid 38
not later than 10 days after the close of each calendar month. When revenue has been appropriated 39
to the local school administrative unit by the board of county commissioners from funds which 40
carry specific restrictions binding upon the county as recipient, the board of commissioners must 41
inform the local school administrative unit in writing of those restrictions." 42
SECTION 3.12.(g) G.S. 115C-448(d) reads as rewritten: 43
"(d) Special funds of individual schools shall not be included as part of the local current 44
expense fund of a local school administrative unit for the purposes of determining in determining 45
the per pupil share of the local current expense fund transferred amount to be appropriated from 46
the county to a charter school pursuant to G.S. 115C-218.105(c).G.S. 115C-218.105(b3)." 47
SECTION 3.12.(h) G.S. 153A-461, as amended by Section 6 of S.L. 2023-107, 48
reads as rewritten: 49
"§ 153A-461. Charter schools. 50 General Assembly Of North Carolina Session 2025
Page 30 House Bill 420-First Edition
(a) Each county shall appropriate to a charter school the average per pupil allocation, as 1
determined by G.S. 115C-430, for each child that resides in the county and attends that charter 2
school. 3
(b) Each county is authorized to appropriate direct capital funds and lease real property 4
to schools chartered under Article 14A of Chapter 115C of the General Statutes. Counties may 5
provide direct capital funds only for the purposes set forth in G.S. 115C-218.105(b1)." 6
7
ISSUE CAPITAL BONDS 8
SECTION 3.13.(a) Purpose. – It is the intent of the General Assembly by this section 9
to provide, subject to a vote of the qualified voters of the State, for the issuance of two billion 10
dollars ($2,000,000,000) in general obligation bonds of the State for the purpose of providing 11
funds, with any other available funds, for public school facilities through grants to counties for 12
public school capital outlay projects, repairs, and renovations. 13
SECTION 3.13.(b) Definitions. – Unless the context otherwise requires, the 14
following definitions apply in this section: 15
(1) Bonds. – Bonds issued under this section. 16
(2) Cost. – Without intending thereby to limit or restrict any proper definition of 17
this term in financing the cost of any capital outlay projects as authorized by 18
this section, any of the following: 19
a. The cost of constructing, reconstructing, enlarging, acquiring, and 20
improving projects and acquiring equipment and land therefor. 21
b. The cost of engineering, architectural, and other consulting services as 22
may be required. 23
c. Administrative expenses and charges, including expenses related to 24
determining compliance with applicable requirements of federal law 25
and expenses relating to issuance. Nothing in this section shall permit 26
use of bond funds to pay salaries or fees for bond administration; such 27
salaries and fees shall come from funds appropriated by the General 28
Assembly. 29
d. Finance charges and interest prior to and during construction and, if 30
deemed advisable by the State Treasurer, for a period not exceeding 31
three years after the estimated date of completion of construction. 32
e. The cost of bond insurance, investment contracts, credit enhancement 33
and liquidity facilities, interest rate swap agreements or other 34
derivative products, financial and legal consultants, and related costs 35
of bond and note issuance, and costs incurred by the State in 36
administering the bond issues, including costs of trustees, escrow 37
agents, arbitrage rebate liability consultants, securities disclosure 38
counsel or similar securities disclosure consultants, tax consultants 39
and financial advisors, to the extent and as determined by the State 40
Treasurer. 41
f. The cost of reimbursing the State for any payments made for any cost 42
described in this subdivision. 43
g. Any other costs and expenses necessary or incidental to the purposes 44
of this school. 45
Allocations in this section of proceeds of bonds to the costs of a project or 46
undertaking in each case may include allocations to pay the costs set forth in 47
sub-subdivisions c. through g. of this subdivision in connection with the 48
issuance of bonds for the project or undertaking. 49
(3) Credit facility agreement. – An agreement entered into by the State Treasurer 50
on behalf of the State with a bank, savings and loan association, or other 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 31
banking institution; an insurance company, reinsurance company, surety 1
company, or other insurance institution; a corporation, investment banking 2
firm, or other investment institution; or any financial institution or other 3
similar provider of a credit facility agreement, which provider may be located 4
within or without the United States of America, such agreement providing for 5
prompt payment of all or any part of the principal or purchase price (whether 6
at maturity, presentment or tender for purchase, redemption, or acceleration), 7
redemption premium, if any, and interest on any bonds or notes payable on 8
demand or tender by the owner, in consideration of the State agreeing to repay 9
the provider of the credit facility agreement in accordance with the terms and 10
provisions of such agreement. 11
(4) Notes. – Notes issued under this section. 12
(5) Par formula. – Any provision or formula adopted by the State to provide for 13
the adjustment, from time to time, of the interest rate or rates borne by any 14
bonds or notes, including the following: 15
a. A provision providing for such adjustment so that the purchase price 16
of such bonds or notes in the open market would be as close to par as 17
possible; 18
b. A provision providing for such adjustment based upon a percentage or 19
percentages of a LIBOR rate, a prime rate, or base rate, which 20
percentage or percentages may vary or be applied for different periods 21
of time; or 22
c. Such other provision as the State Treasurer may determine to be 23
consistent with this and will not materially and adversely affect the 24
financial position of the State and the marketing of bonds or notes at a 25
reasonable interest cost to the State. 26
(6) Public school capital outlay project. – A project for any of the following: 27
a. Construction of one or more new public school buildings. 28
b. Renovation of one or more existing public school buildings. 29
c. Construction, acquisition, and installation of technology infrastructure 30
for a public school building. 31
d. Acquisition and installation of equipment or fixtures to ensure 32
building security for a public school building. 33
e. Acquisition and installation of equipment for a public school building 34
that will be used for an instructional or related purpose. 35
f. Purchase of land necessary for construction to commence within 24 36
months of one or more public school buildings. 37
g. Other related capital outlay projects to provide facilities for individual 38
public schools that are used for instructional or related purposes. 39
The term does not include projects for facilities for centralized administration, 40
trailers, relocatable classrooms, or mobile classrooms. 41
(7) State. – The State of North Carolina. 42
SECTION 3.13.(c) Authorization of Bonds and Notes. – Subject to a favorable vote 43
of a majority of the qualified voters of the State who vote on the question of issuing bonds for 44
public school capital outlay projects in the election called and held as provided in this section, 45
the State Treasurer is hereby authorized, by and with the consent of the Council of State, to issue 46
and sell, at one time or from time to time, general obligation bonds of the State to be designated 47
"State of North Carolina Education Bonds," with any additional designations as may be 48
determined to indicate the issuance of bonds from time to time, or notes of the State as provided 49
in this section, in an aggregate principal amount not exceeding two billion dollars 50
($2,000,000,000) for the purpose of providing funds, with any other available funds, for the 51 General Assembly Of North Carolina Session 2025
Page 32 House Bill 420-First Edition
purposes authorized in this section. In determining whether this limit has been reached, the 1
issuance of a note or bond to pay an outstanding note is not considered an issuance. 2
SECTION 3.13.(d) Use of Education Bond and Note Proceeds. – 3
(1) Subject to the provisions of subdivision (2) of this subsection, two billion 4
dollars ($2,000,000,000) of the proceeds of education bonds and notes, 5
including premium thereon, if any, shall be used for the purpose of making 6
grants to counties for paying the cost of public school capital outlay projects, 7
repairs, and renovations. Proceeds of education bonds and notes shall be 8
distributed to public school units as if they were funds in the Needs-Based 9
Public School Capital Fund, except there shall be no matching requirements 10
imposed on the public school units. 11
Any additional monies that may be received by means of a grant or grants 12
from the United States of America or any agency or department thereof or 13
from any other source to aid in financing the cost of public school capital 14
outlay projects authorized by this section may be placed by the State Treasurer 15
in the Education Bonds Fund or in a separate account or fund and shall be 16
disbursed, to the extent permitted by the terms of the grant or grants, without 17
regard to limitations imposed by this section. 18
(2) The State Board of Education shall also require counties to report annually on 19
the impact of funds provided under this section on the property tax rate for 20
that year. These reports shall be public documents and shall be furnished to 21
any citizen upon request. 22
(3) The General Assembly encourages, in projects for which bond proceeds are 23
allocated, consideration by counties and local school administrative units of 24
projects that primarily involve materially improving the energy efficiency of 25
the school facility. 26
SECTION 3.13.(e) Allocation and Tracking of Proceeds. – 27
(1) Education bonds. – The proceeds of education bonds and notes, including 28
premium thereon, if any, except the proceeds of bonds, the issuance of which 29
has been anticipated by bond anticipation notes or the proceeds of refunding 30
bonds or notes, shall be placed by the State Treasurer in a special fund to be 31
designated "Education Bonds Fund," which may include such appropriate 32
special accounts therein as may be determined by the State Treasurer and shall 33
be disbursed as provided in this section. Monies in the Education Bonds Fund 34
shall be allocated and expended as provided in this section. 35
Any additional monies that may be received by means of a grant or grants 36
from the United States of America or any agency or department thereof or 37
from any other source for deposit to the Education Bonds Fund may be placed 38
in the Education Bonds Fund or in a separate account or fund and shall be 39
disbursed, to the extent permitted by the terms of the grant or grants, without 40
regard to any limitations imposed by this section. 41
Monies in the Education Bonds Fund or any separate account established 42
under this section may be invested from time to time by the State Treasurer in 43
the same manner permitted for investment of monies belonging to the State or 44
held in the State treasury, except with respect to grant money to the extent 45
otherwise directed by the terms of the grant. Investment earnings, except 46
investment earnings with respect to grant monies to the extent otherwise 47
directed or restricted by the terms of the grant, may be (i) credited to the 48
Education Bonds Fund or (ii) used to satisfy compliance with applicable 49
requirements of the federal tax law. 50 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 33
The proceeds of education bonds and notes, including premium thereon, 1
if any, may be used with any other monies made available by the General 2
Assembly for funding the projects authorized by this section, including the 3
proceeds of any other State bond issues, whether heretofore made available or 4
that may be made available at the session of the General Assembly at which 5
this section is ratified or any subsequent sessions. The proceeds of education 6
bonds and notes, including premium thereon, if any, shall be expended and 7
disbursed under the direction and supervision of the Director of the Budget. 8
The funds provided by this section shall be disbursed for the purposes 9
provided in this section upon warrants drawn on the State Treasurer by the 10
State Controller, which warrants shall not be drawn until requisition has been 11
approved by the Director of the Budget and which requisition shall be 12
approved only after full compliance with the State Budget Act, Chapter 143C 13
of the General Statutes. 14
(2) Tracking of bond proceeds. – The State Treasurer or the State Treasurer's 15
designee is hereby authorized and directed to set up a comprehensive system 16
of tracking the proceeds of the education bonds and notes, including premium 17
thereon, if any, to the extent necessary to enable the State Treasurer or the 18
State Treasurer's designee to properly account for the use of such proceeds for 19
compliance with applicable requirements of the federal tax law or otherwise. 20
All recipients of such proceeds shall comply with any tracking system 21
implemented by the State Treasurer or the State Treasurer's designee for this 22
purpose. The State Treasurer may withhold proceeds if the recipient fails to 23
comply with this subdivision. 24
(3) Costs. – Allocations to the costs of a capital improvement or undertaking in 25
each case may include allocations to pay the costs set forth in sub-subdivisions 26
(b)(2)c. through (b)(2)g. of this section in connection with the issuance of 27
bonds for that capital improvement or undertaking. 28
SECTION 3.13.(f) Election. – The question of the issuance of the bonds authorized 29
by this section shall be submitted to the qualified voters of the State at the time of the election in 30
2028 when voters of this State are given an opportunity to express their preference for the person 31
to be the presidential candidate of their political party. Any other primary, election, or 32
referendum, validly called or scheduled by law at the time the election on the bond question 33
provided for in this subsection is held, may be held as called or scheduled. Notice of the election 34
shall be given in the manner and at the times required by G.S. 163-33(8). The election and the 35
registration of voters therefor shall be held under and in accordance with the general laws of the 36
State. Absentee ballots shall be authorized in the election. 37
Ballots, voting systems authorized by Article 14A of Chapter 163 of the General 38
Statutes, or both may be used in accordance with rules prescribed by the State Board. The bond 39
question to be used in the ballots or voting systems shall be in substantially the following form: 40
"[ ] FOR [ ] AGAINST 41
The issuance of two billion dollars ($2,000,000,000) State of North Carolina 42
Education Bonds constituting general obligation bonds of the State secured by a pledge of the 43
faith and credit and taxing power of the State for the purpose of providing funds, with any other 44
available funds, to fund capital improvements, construction of new facilities, and the renovation 45
and rehabilitation of existing facilities for the State's kindergarten through grade 12 public 46
education system." 47
If a majority of those voting on a bond question in the election vote in favor of the 48
issuance of the bonds described in the question, those bonds may be issued as provided in this 49
section. If a majority of those voting on the bond question in the election do not vote in favor of 50
the issuance of the bonds described in the question, those bonds shall not be issued. 51 General Assembly Of North Carolina Session 2025
Page 34 House Bill 420-First Edition
The results of the election shall be canvassed and declared as provided by law for 1
elections for State officers; the results of the election shall be certified by the State Board to the 2
Secretary of State in the manner and at the time provided by the general election laws of the 3
State. 4
SECTION 3.13.(g) Issuance of Bonds and Notes. – 5
(1) Terms and conditions. – Bonds or notes may bear such date or dates, may be 6
serial or term bonds or notes, or any combination thereof, may mature in such 7
amounts and at such time or times, not exceeding 40 years from their date or 8
dates, may be payable at such place or places, either within or without the 9
United States of America, in such coin or currency of the United States of 10
America as at the time of payment is legal tender for payment of public and 11
private debts, may bear interest at such rate or rates, which may vary from 12
time to time, and may be made redeemable before maturity, at the option of 13
the State or otherwise as may be provided by the State, at such price or prices, 14
including a price less than the face amount of the bonds or notes, and under 15
such terms and conditions, all as may be determined by the State Treasurer by 16
and with the consent of the Council of State. 17
(2) Signatures; form and denomination; registration. – Bonds or notes may be 18
issued as certificated or uncertificated obligations. If issued as certificated 19
obligations, bonds or notes shall be signed on behalf of the State by the 20
Governor or shall bear the Governor's facsimile signature, shall be signed by 21
the State Treasurer or shall bear the State Treasurer's facsimile signature, and 22
shall bear the Great Seal of the State of North Carolina or a facsimile thereof 23
shall be impressed or imprinted thereon. If bonds or notes bear the facsimile 24
signatures of the Governor and the State Treasurer, the bonds or notes shall 25
also bear a manual signature, which may be that of a bond registrar, trustee, 26
paying agent, or designated assistant of the State Treasurer. Should any officer 27
whose signature or facsimile signature appears on bonds or notes cease to be 28
such officer before the delivery of the bonds or notes, the signature or 29
facsimile signature shall nevertheless have the same validity for all purposes 30
as if the officer had remained in office until delivery, and bonds or notes may 31
bear the facsimile signatures of persons who at the actual time of the execution 32
of the bonds or notes shall be the proper officers to sign any bond or note, 33
although at the date of the bond or note such persons may not have been such 34
officers. The form and denomination of bonds or notes, including the 35
provisions with respect to registration of the bonds or notes and any system 36
for their registration, shall be as the State Treasurer may determine in 37
conformity with this section; provided, however, that nothing in this section 38
shall prohibit the State Treasurer from proceeding, with respect to the issuance 39
and form of the bonds or notes, under the provisions of Chapter 159E of the 40
General Statutes, the Registered Public Obligations Act, as well as under this 41
section. 42
(3) Manner of sale; expenses. – Subject to the consent of the Council of State, the 43
State Treasurer shall determine the manner in which bonds or notes shall be 44
offered for sale, whether at public or private sale, whether within or without 45
the United States of America, and whether by publishing notices in certain 46
newspapers and financial journals, mailing notices, inviting bids by 47
correspondence, negotiating contracts of purchase, or otherwise, and the State 48
Treasurer is authorized to sell bonds or notes at one time or from time to time 49
at such rate or rates of interest, which may vary from time to time, and at such 50
price or prices, including a price less than the face amount of the bonds or the 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 35
notes, as the State Treasurer may determine. All expenses incurred in 1
preparation, sale, and issuance of bonds or notes shall be paid by the State 2
Treasurer from the proceeds of bonds or notes or other available monies. 3
(4) Notes; repayment. – 4
a. Subject to the consent of the Council of State, the State Treasurer is 5
hereby authorized to borrow money and to execute and issue notes of 6
the State for the same, but only in the following circumstances and 7
under the following conditions: 8
1. For anticipating the sale of bonds to the issuance of which the 9
Council of State shall have given consent if the State Treasurer 10
shall deem it advisable to postpone the issuance of the bonds. 11
2. For the payment of interest on or any installment of principal 12
of any bonds then outstanding if there shall not be sufficient 13
funds in the State treasury with which to pay the interest or 14
installment of principal as they respectively become due. 15
3. For the renewal of any loan evidenced by notes herein 16
authorized. 17
4. For the purposes authorized in this section. 18
5. For refunding bonds or notes as herein authorized. 19
b. Funds derived from the sale of bonds or notes may be used in the 20
payment of any bond anticipation notes issued under this section. 21
Funds provided by the General Assembly for the payment of interest 22
on or principal of bonds shall be used in paying the interest on or 23
principal of any notes and any renewals thereof, the proceeds of which 24
shall have been used in paying interest on or principal of the bonds. 25
(5) Refunding bonds and notes. – By and with the consent of the Council of State, 26
the State Treasurer is authorized to issue and sell refunding bonds and notes 27
pursuant to the provisions of the State Refunding Bond Act for the purpose of 28
refunding bonds or notes issued pursuant to this section. The refunding bonds 29
and notes may be combined with any other issues of State bonds and notes 30
similarly secured. 31
(6) Tax exemption. – Bonds and notes shall be exempt from all State, county, and 32
municipal taxation or assessment, direct or indirect, general or special, 33
whether imposed for the purpose of general revenue or otherwise, excluding 34
inheritance and gift taxes, income taxes on the gain from the transfer of bonds 35
and notes, and franchise taxes. The interest on bonds and notes shall not be 36
subject to taxation as to income. 37
(7) Investment eligibility. – Bonds and notes are hereby made securities in which 38
all public officers, agencies, and public bodies of the State and its political 39
subdivisions; all insurance companies, trust companies, investment 40
companies, banks, savings banks, savings and loan associations, credit unions, 41
pension or retirement funds, other financial institutions engaged in business 42
in the State; executors, administrators, trustees, and other fiduciaries may 43
properly and legally invest funds, including capital in their control or 44
belonging to them. Bonds and notes are hereby made securities that may 45
properly and legally be deposited with and received by any officer or agency 46
of the State or political subdivision of the State for any purpose for which the 47
deposit of bonds, notes, or obligations of the State or any political subdivision 48
of the State is now or may hereafter be authorized by law. 49
(8) Faith and credit. – The faith and credit and taxing power of the State are hereby 50
pledged for the payment of the principal of and the interest on bonds and notes. 51 General Assembly Of North Carolina Session 2025
Page 36 House Bill 420-First Edition
In addition to the State's right to amend any provision of this section to the 1
extent it does not impair any contractual right of a bond owner, the State 2
expressly reserves the right to amend any provision of this section with respect 3
to the making and repayment of loans, the disposition of any repayments of 4
loans, and any intercept provisions relating to the failure of a local government 5
unit to repay a loan, the bonds not being secured in any respect by loans, any 6
repayments thereof, or any intercept provisions with respect thereto. 7
SECTION 3.13.(h) Variable Interest Rates. – In fixing the details of bonds and notes, 8
the State Treasurer may provide that any of the bonds or notes may: 9
(1) Be made payable from time to time on demand or tender for purchase by the 10
owner thereof, provided a credit facility agreement supports the bonds or 11
notes, unless the State Treasurer specifically determines that a credit facility 12
agreement is not required, upon a finding and determination by the State 13
Treasurer that the absence of a credit facility agreement will not materially or 14
adversely affect the financial position of the State and the marketing of the 15
bonds or notes at a reasonable interest cost to the State; 16
(2) Be additionally supported by a credit facility agreement; 17
(3) Be made subject to redemption or a mandatory tender for purchase prior to 18
maturity; 19
(4) Bear interest at a rate or rates that may vary for such period or periods of time, 20
all as may be provided in the proceedings providing for the issuance of the 21
bonds or notes, including, without limitation, such variations as may be 22
permitted pursuant to a par formula; and 23
(5) Be made the subject of a remarketing agreement whereby an attempt is made 24
to remarket bonds or notes to new purchasers prior to their presentment for 25
payment to the provider of the credit facility agreement or to the State. 26
If the aggregate principal amount repayable by the State under a credit facility 27
agreement is in excess of the aggregate principal amount of bonds or notes secured by the credit 28
facility agreement, whether as a result of the inclusion in the credit facility agreement of a 29
provision for the payment of interest for a limited period of time or the payment of a redemption 30
premium or for any other reason, then the amount of authorized but unissued bonds or notes 31
during the term of such credit facility agreement shall not be less than the amount of such excess, 32
unless the payment of such excess is otherwise provided for by agreement of the State executed 33
by the State Treasurer. 34
SECTION 3.13.(i) Interpretation of Section. – 35
(1) Additional method. – The foregoing subsections of this section shall be 36
deemed to provide an additional and alternative method for the doing of the 37
things authorized thereby and shall be regarded as supplemental and 38
additional to powers conferred by other laws and shall not be regarded as in 39
derogation of any powers now existing. 40
(2) Statutory references. – References in this section to specific sections or 41
Chapters of the General Statutes or to specific acts are intended to be 42
references to these sections, Chapters, or acts as they may be amended from 43
time to time by the General Assembly. 44
(3) Broad construction. – This section, being necessary for the health, welfare, 45
and advancement of the people of the State, shall be broadly construed to 46
affect the purposes thereof. 47
(4) Inconsistent provisions. – Insofar as the provisions of this section are 48
inconsistent with the provisions of any general laws, or parts thereof, the 49
provisions of this section shall be controlling. 50 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 37
(5) Severability. – If any provision of this section or the application thereof to any 1
person or circumstance is held invalid, such invalidity shall not affect other 2
provisions or applications of the section that can be given effect without the 3
invalid provision or application and, to this end, the provisions of this section 4
are declared to be severable. 5
SECTION 3.13.(j) Other Agreements. – The State Treasurer may authorize, execute, 6
obtain, or otherwise provide for bond issuance, investment contracts, credit and liquidity 7
facilities, interest rate swap agreements and other derivative products, and any other related 8
instruments and matters the State Treasurer determines to be desirable in connection with the 9
issuance of bonds and notes. 10
SECTION 3.13.(k) Each entity, upon receiving the proceeds of education bonds and 11
notes, including premium thereon, if any, issued pursuant to and for purposes listed in subsection 12
(a) of this section, shall administer, supervise, and ensure that use of the proceeds comports with 13
those purposes. Each local school administrative unit, along with the corresponding board of 14
county commissioners, shall jointly submit to the State Board of Education a plan for the 15
distribution of the proceeds of education bonds and notes pursuant to this section. After the State 16
Board of Education determines that a local school administrative unit's planned expenditure of 17
part or all of the proceeds is within the purposes provided in this section, the State Board of 18
Education shall make the proceeds to which the plans apply available to the local school 19
administrative unit. Each local school administrative unit receiving the proceeds of education 20
bonds and notes, including premium thereon, if any, issued pursuant to subsection (a) of this 21
section shall report by January 1, 2029, and quarterly thereafter, to the State Board of Education 22
on the projects funded from education general obligation bonds authorized by subsection (a) of 23
this section, and the State Board of Education shall combine the reports and submit them to the 24
Joint Legislative Capital Improvement Oversight Committee, the House of Representatives 25
Appropriations Committee, and the Senate Committee on Appropriations/Base Budget. Each 26
report shall include the total project costs, the amount to be funded from the bonds, the 27
expenditures to date from the bonds and other sources, and the percentage of each project 28
completed. 29
SECTION 3.13.(l) Projects funded in whole or in part with the proceeds of education 30
bonds and notes, including premium thereon, if any, issued pursuant to this section, and that 31
portion of funds estimated to be needed for escalation of costs shall remain with the Office of 32
State Budget and Management and shall be disbursed only for the following purposes: 33
(1) To address unforeseen contingencies related to the specific project for which 34
the funds were made available. 35
(2) To address inflation costs related to that specific project. 36
SECTION 3.13.(m) Any funds retained by the Office of State Budget and 37
Management pursuant to subsection (l) of this section at the time a project is completed shall be 38
retained by the Office of State Budget and Management. The Office of State Budget and 39
Management shall report on any funds retained pursuant to this subsection within 90 days of a 40
project's completion. 41
SECTION 3.13.(n) Any funds from the Education Bond Fund expended for school 42
technology for public schools shall be reported to the State Board of Education and shall be 43
credited against the judgment in N.C. Sch. Bds. Ass'n. v. Moore, No. 98-CVS-14159 (N.C. Super. 44
Ct.). 45
46
DISADVANTAGED STUDE NT SUPPLEMENTAL FUNDING (DSSF)/AT -RISK 47
STUDENT SERVICES/ALTERNATIVE SCHOOLS 48
SECTION 3.14.(a) Beginning with the 2025-2026 fiscal year, the State Board of 49
Education shall transfer the At-Risk Student Services/Alternative Schools allotment into the 50
DSSF allotment, as established by G.S. 115C-472.24. The State Board of Education shall allocate 51 General Assembly Of North Carolina Session 2025
Page 38 House Bill 420-First Edition
these funds to local school administrative units under a formula that provides that no local school 1
administrative unit receives a decrease in combined funding. Reallocated At-Risk funding must 2
be counted as an independent supplement to existing DSSF funds. 3
SECTION 3.14.(b) G.S. 115C-472.24 reads as rewritten: 4
"§ 115C-472.24. Disadvantaged Disadvantaged/At-Risk student supplemental funding. 5
(a) To the extent funds are made available for this purpose, funds appropriated for 6
disadvantaged or at-risk student supplemental funding shall be used, consistent with the policies 7
and procedures adopted by the State Board of Education, only to do the following: 8
(1) Provide instructional positions or instructional support positions. 9
(2) Provide professional development. 10
(3) Provide intensive in-school or after-school remediation, or both. 11
(4) Purchase diagnostic software and progress-monitoring tools. 12
(5) Provide funds for teacher bonuses and supplements. The State Board of 13
Education shall set a maximum percentage of the funds that may be used for 14
this purpose. 15
(6) Provide funds for alternative learning and at-risk student programs in 16
accordance with G.S. 115C-12(24). 17
The State Board of Education may require local school administrative units receiving funding 18
under the Disadvantaged Student Supplemental Fund to purchase the Education Value-Added 19
Assessment System (EVAAS) in order to provide in-depth analysis of student performance and 20
help identify strategies for improving student achievement. This data shall be used exclusively 21
for instructional and curriculum decisions made in the best interest of children and for 22
professional development for their teachers and administrators. 23
…." 24
SECTION 3.14.(c) There is appropriated from the General Fund to the Department 25
of Public Instruction the sum of seven hundred twenty-five million eight hundred thousand 26
dollars ($725,800,000) in recurring funds for the 2025-2026 fiscal year and nine hundred 27
forty-four million three hundred thousand dollars ($944,300,000) in recurring funds for the 28
2026-2027 fiscal year to implement the provisions of this section. 29
30
INCREASE FUNDING FOR CLASSROOM SUPPLIES 31
SECTION 3.15. There is appropriated from the General Fund to the Department of 32
Public Instruction the sum of sixty-one million seven hundred thousand dollars ($61,700,000) in 33
recurring funds for the 2025-2026 fiscal year and ninety-six million seven hundred thousand 34
dollars ($96,700,000) in recurring funds for the 2026-2027 fiscal year to increase the Classroom 35
Materials/Instructional Supplies/Equipment Allotment. 36
37
DEPARTMENT OF PUBLIC INSTRUCTION TO STUDY WEIGHTED STUDENT 38
FUNDING MODEL 39
SECTION 3.16.(a) The Department of Public Instruction shall study methods of 40
implementing a weighted student funding formula that retains existing guaranteed position 41
allotments. The Department may contract with a third party to conduct this study. The 42
Department shall report the Department's recommendations to implement such a model to the 43
Joint Legislative Education Oversight Committee by March 15, 2026. 44
SECTION 3.16.(b) There is appropriated from the General Fund to the Department 45
of Public Instruction the sum of five hundred thousand dollars ($500,000) in nonrecurring funds 46
for the 2025-2026 fiscal year to perform the study required by this section. 47
48
PART IV. ASSESSMENT AND ACCOUNTABILITY S YSTEM THAT RELIABLY 49
ASSESSES MULTIPLE ME ASURES OF STUDENT PE RFORMANCE 50
51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 39
ADJUST WEIGHTING BETWEEN PROFICIENCY A ND GROWTH 1
SECTION 4.1.(a) G.S. 115C-83.15(d) reads as rewritten: 2
"(d) Calculation of the Overall School Performance Scores and Grades. – The State Board 3
of Education shall calculate the overall school performance score by adding the school 4
achievement score, as provided in subsection (b) of this section, and the school growth score, as 5
determined using EVAAS as provided in subsection (c) of this section, earned by a school. The 6
school achievement score shall account for eighty fifty-one percent (80%), (51%), and the school 7
growth score shall account for twenty forty-nine percent (20%) (49%) of the total sum. For all 8
schools, the total school performance score shall be converted to a 100-point scale and used to 9
determine an overall school performance grade. The overall school performance grade shall be 10
based on the following scale and shall not be modified to add any other designation related to 11
other performance measures, such as a "plus" or "minus": 12
…." 13
SECTION 4.1.(b) The Department of Public Instruction shall amend the State plan 14
under the Elementary and Secondary Education Act of 1965, as amended by the Every Student 15
Succeeds Act, to reflect the changes to achievement and growth score weighting in this section. 16
SECTION 4.1.(c) This section applies beginning with school performance scores 17
issued based on data from the 2025-2026 school year. 18
19
STUDY ON ADDITIONAL MEASURES IN THE SCHOOL ACCOUNTABILITY 20
SYSTEM 21
SECTION 4.2. The State Board of Education, in consultation with the Department 22
of Public Instruction, shall study methods of adding to the State school accountability system 23
indicators that provide information on the opportunity of students to access a sound basic 24
education. Additional indicators recommended shall not be inconsistent with the requirements of 25
the Elementary and Secondary Education Act of 1965, as amended by the Every Student 26
Succeeds Act, and shall not replace indicators included in the State school accountability system 27
under Part 1B of Article 8 of Chapter 115C of the General Statutes. The State Board of Education 28
shall submit a report with its recommended changes regarding the school accountability system 29
to the Joint Legislative Education Oversight Committee on or before June 15, 2026. 30
31
PART V. ASSISTANCE A ND TURNAROUND FUNCTI ON THAT PROVIDES 32
NECESSARY SUPPORT TO LOW-PERFORMING SCHO OLS AND 33
LOW-PERFORMING LOCAL SCHOOL ADMINISTRATI VE UNITS 34
35
DISTRICT AND REGIONAL SUPPORT MODEL 36
SECTION 5.1. There is appropriated from the General Fund to the Department of 37
Public Instruction the sum of nineteen million dollars ($19,000,000) in recurring funds for the 38
2025-2026 fiscal year to be used to continue to implement the District and Regional Support 39
model developed by the State Board of Education to support the improvement of low-performing 40
and high-poverty schools. Implementation shall (i) provide support in needed content areas and 41
instructional and leadership coaching and (ii) include direct, comprehensive, and progressive 42
turnaround assistance to the State's chronically low-performing schools and low-performing 43
districts. 44
45
REVIEW AND UPDATE CURRICULUM ADOPTION PROCESSES 46
SECTION 5.2. Before March 15, 2026, the State Board of Education shall review, 47
update, and strengthen the State-level process for reviewing and adopting core curriculum 48
resources. The State Board of Education shall provide statewide and regional support, resources, 49
and professional learning opportunities to assist schools and districts in selecting and successfully 50
employing high-quality, standards-aligned, culturally responsive, evidence-based resources and 51 General Assembly Of North Carolina Session 2025
Page 40 House Bill 420-First Edition
practices to assist educators in applying innovative practices that promote continuous 1
improvement. No later than June 30, 2026, the Department of Public Instruction shall provide a 2
model implementation plan to each local school administrative unit. 3
4
SUPPORT FOR HIGH -POVERTY SCHOOLS 5
SECTION 5.3.(a) Article 13 of Chapter 115C of the General Statutes is amended by 6
adding a new section to read: 7
"§ 115C-209.2. Community schools support program. 8
(a) Program Established. – The Department of Public Instruction shall establish a 9
program (Program) to provide support to high-poverty schools that adopt a community school 10
model or other evidence-based models to address out-of-school barriers to learning. 11
(b) Definitions. – The following definitions shall apply in this section: 12
(1) Community school model. – The model following the Department of Public 13
Instruction's Whole School, Whole Community, Whole Child model based on 14
the Centers for Disease Control and Prevention's guidance. 15
(2) Evidence-based model. – Any model established using evidence-based 16
methods that, in the discretion of the State Board of Education, achieve the 17
goals set in the Whole School, Whole Community, Whole Child model. 18
(c) Participation. – The Department of Public Instruction shall disseminate an application 19
form for participation in the Program for the following school year no later than June 1 of each 20
year. No later than July 1, any school that uses a community school model or other 21
evidence-based model to address out-of-school barriers to learning may apply to participate in 22
the Program. No later than August 1 of each school year that funds are made available for this 23
purpose, the Department of Public Instruction shall select geographically and culturally diverse 24
schools from among the applicants for that school year to participate in the Program. Priority 25
shall be given to schools that have high rates of student poverty. 26
(d) Implementation. – Each participating local school administrative unit shall hire one 27
full-time school-based coordinator per participating school. The school-based coordinator shall 28
assess local needs and assets and organize the integration of social, academic, and health supports 29
in coordination with school support personnel. The school-based coordinator shall also assess the 30
school's access to technical assistance and professional support to effectively plan and implement 31
the community school model or other evidence-based model. No later than July 15 of each school 32
year that a school participates in the Program, the school-based coordinator shall submit to the 33
Department of Public Instruction a request for funds for goods or services beneficial to meeting 34
the goals of the community school model or other evidence-based model for the following school 35
year. No later than August 15 of each school year, the Department of Public Instruction shall 36
evaluate each funding request and allocate funds as it deems necessary. 37
(e) Report. – No later than October 15 of each school year, the Department of Public 38
Instruction, in consultation with each school-based coordinator, shall provide a report to the Joint 39
Legislative Education Oversight Committee on the following: 40
(1) The amount of funds requested by each school. 41
(2) The purposes of funds requested by each school. 42
(3) The amount of funds allocated to each school. 43
(4) The use of funds allocated to each school. 44
(5) Any effects of the model on school outcomes, including attendance rates, 45
academic outcomes, or any other measure the school-based coordinator or the 46
Department deems relevant. 47
(6) Any other information the Department deems relevant." 48
SECTION 5.3.(b) Appropriation. – There is appropriated from the General Fund to 49
the Department of Public Instruction the sum of fifty-eight million seven hundred sixty-three 50
thousand seven hundred thirty-three dollars ($58,763,733) in recurring funds for the 2025-2026 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 41
fiscal year and sixty-five million five hundred thirteen thousand six hundred twenty-one dollars 1
($65,513,621) in recurring funds for the 2026-2027 fiscal year for the implementation of this 2
Program. 3
SECTION 5.3.(c) This section applies beginning with the 2025-2026 school year. 4
5
ELIMINATE STUDENT COPAY FOR REDUCED -PRICE MEALS 6
SECTION 5.4.(a) There is appropriated from the General Fund to the Department 7
of Public Instruction the sum of nine hundred thousand dollars ($900,000) in recurring funds for 8
the 2025-2026 fiscal year to be used to provide school breakfasts and lunches at no cost to 9
students of all grade levels that qualify for reduced-price meals under the National School Lunch 10
Program in the current school year. If the funds are insufficient to provide school meals at no 11
cost to students qualifying for reduced-price meals, the Department of Public Instruction may 12
use funds appropriated to the State Aid for Public Schools fund for this purpose. 13
SECTION 5.4.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is 14
amended by adding a new section to read: 15
"§ 115C-264.6. School meal debt report. 16
No later than October 15, 2025, and annually thereafter, the State Board of Education shall 17
report to the Joint Legislative Education Oversight Committee on unpaid meal charges in local 18
school administrative units. At a minimum, the report shall include the following information: 19
(1) The percentage of students of all grade levels in each local school 20
administrative unit who (i) qualify for and participate in reduced-price meals 21
and (ii) do not carry an unpaid meal charge. 22
(2) The total amount of funds received by each local school administrative unit 23
related to unpaid meal charges. 24
(3) Summaries of approaches adopted by each local school administrative unit 25
regarding unpaid meal charges. 26
(4) Options for a statewide policy on the uniform administration of unpaid meal 27
charges in local school administrative units. Every option shall ensure that 28
students are not prevented from receiving nutritious meals because of an 29
unpaid meal charge." 30
31
CEP MEAL PROGRAM INCENTIVE 32
SECTION 5.5.(a) Section 7.59 of S.L. 2023-134 reads as rewritten: 33
"SECTION 7.59.(a) Program; Purpose. – The Department of Public Instruction shall 34
establish the CEP Meal Program Incentive for the 2023-2025 fiscal biennium to expand public 35
school participation in the federal Community Eligibility Provision (CEP) program to increase 36
the number of students with access to healthy, cost-free school breakfast and lunch. The incentive 37
program shall be available to public school units for the 2024-2025 fiscal year.year and last for 38
four additional years. 39
… 40
"SECTION 7.59.(c) Application. – By January 15, 2024, and annually thereafter by April 41
15 for four additional years, the Department shall develop the application for the incentive 42
program and make it available to public school units. Public school units or individual schools 43
shall submit their applications by March 1, 2024. 2024, and annually thereafter by June 1 for four 44
additional years. At a minimum, the application shall include the following information: 45
(1) The school or schools that will participate in the CEP program. 46
(2) The Identified Student Percentage (ISP) for the school or schools for the 2024-47
2025 current school year. 48
(3) The number of students enrolled in the school or schools for the 2024-2025 49
current school year. 50 General Assembly Of North Carolina Session 2025
Page 42 House Bill 420-First Edition
(4) Participation rates in the National School Breakfast and Lunch programs for 1
the 2023-2024 school year for the schools requesting to receive the incentive. 2
"SECTION 7.59.(d) Selection. – By April 30, 2024, and annually thereafter by July 15 for 3
four additional years, the Department shall determine whether each applicant is eligible to 4
participate in the incentive program. The Department shall then award grants to all eligible public 5
school units and schools. If there are insufficient funds to award grants to all eligible public 6
school units or schools, the Department shall first prioritize awarding grants to public school 7
units and schools with an Identified Student Percentage (ISP) of greater than or equal to fifty-five 8
percent (55%) and then prioritize awarding grants to those schools that will draw the greatest 9
federal match. 10
… 11
"SECTION 7.59.(g) Report. – No later than January 1, 2025, and annually thereafter for 12
four additional years, the Department shall report to the Joint Legislative Education Oversight 13
Committee and the Fiscal Research Division at least the following information: 14
…." 15
SECTION 5.5.(b) Appropriation. – There is appropriated from the General Fund to 16
the Department of Public Instruction the sum of one hundred two million dollars ($102,000,000) 17
in recurring funds for the 2025-2026 fiscal year to implement the provisions of this section. 18
19
PART VI. SYSTEM OF E ARLY EDUCATION THAT PROVIDES ACCESS TO 20
HIGH-QUALITY PREKIND ERGARTEN AND OTHER E ARLY CHILDHOOD 21
LEARNING OPPORTUNITI ES 22
23
EXPAND NC PREKINDERGARTEN (NC PRE -K) PROGRAM 24
SECTION 6.1.(a) Appropriation. – There is appropriated from the General Fund to 25
the Department of Health and Human Services, Division of Child Development and Early 26
Education, the sum of two hundred fifty-eight million three hundred thousand dollars 27
($258,300,000) in recurring funds for the 2025-2026 fiscal year and the sum of three hundred 28
thirty-three million four hundred thousand dollars ($333,400,000) in recurring funds for the 29
2026-2027 fiscal year for the purpose of expanding the NC Prekindergarten (NC Pre-K) program 30
for eligible children who are 4 years of age by allocating funds for each of the following: 31
(1) Incrementally increase State funding for each NC Pre-K slot with the goal of 32
paying one hundred percent (100%) of the actual cost by the end of the 33
2027-2028 fiscal year. 34
(2) Gradually increase the number of eligible children able to be served in the NC 35
Pre-K program with the goal of reaching at least seventy-five percent (75%) 36
of eligible children in each county by the end of the 2027-2028 fiscal year. 37
(3) Raise the rate for the county administrator to provide oversight, monitoring, 38
enrollment, and support to ten percent (10%) by the end of the 2025-2026 39
fiscal year. 40
(4) Phasing-in extension of the NC Pre-K program year from 10 to 12 months in 41
accordance with subsection (b) of this section. 42
SECTION 6.1.(b) Extend NC Pre-K Program Year to 12 Months. – Section 9D.1 of 43
S.L. 2023-134 is amended by adding a new subsection to read: 44
"SECTION 9D.1.(h) Extend NC Pre-K Program Year. – It is the intent of the General 45
Assembly to gradually extend the NC Pre-K program to cover 12 months of the program year 46
with full implementation statewide by the end of the 2027-2028 fiscal year. To that end, the 47
Division of Child Development and Early Education (Division) shall develop and implement a 48
plan that (i) includes establishing a pilot program to extend the NC Pre-K program year from 10 49
to 12 months and (ii) is based on county capacity to implement the extension. The Division shall 50
select up to three counties to participate in the pilot program that includes, at a minimum, 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 43
representation from a private classroom setting, a public classroom setting that operates on a 1
year-round basis, and an underserved area. The Division shall submit a report to the Joint 2
Legislative Oversight Committee on Health and Human Services and the Fiscal Research 3
Division by December 31, 2026. The report shall include each of the following: 4
(1) The number of students participating in the pilot program. 5
(2) The number of students participating who are in an NC Pre-K classroom in a 6
child care center versus those in an NC Pre-K classroom in a public school. 7
(3) The number of schools and child care centers participating in the program, 8
including identifying those that are private and those that are public. 9
(4) The number of NC Pre-K classrooms participating in the program. 10
(5) The additional costs needed to implement the program. 11
(6) The challenges and successes of implementing the program in both NC Pre-K 12
classrooms in child care centers and NC Pre-K classrooms in public schools." 13
SECTION 6.1.(c) There is appropriated from the General Fund to the Department 14
of Health and Human Services, Division of Child Development and Early Education (Division), 15
the sum of three hundred thousand dollars ($300,000) in recurring funds for each year of the 16
2025-2027 fiscal biennium to increase State-level NC Pre-K staffing to manage the planned 17
expansion of the NC Pre-K program, provide policy development and program oversight, ensure 18
program quality, and manage any new, required studies. 19
SECTION 6.1.(d) There is appropriated from the General Fund to the Department 20
of Health and Human Services, Division of Child Development and Early Education (Division), 21
the sum of thirty-two million three hundred thousand dollars ($32,300,000) in recurring funds 22
for the 2025-2026 fiscal year and the sum of forty-eight million four hundred thousand dollars 23
($48,400,000) in recurring funds for the 2026-2027 fiscal year to provide transportation to all 24
participants enrolled in the NC Pre-K program. 25
26
INCREASE HIGH -QUALITY EARLY LEARNING OPPORTUNITIES FOR 27
CHILDREN FROM BIRTH/INCREASE FUNDS FOR CHILD CARE SUBSIDY 28
SECTION 6.2.(a) There is appropriated from the General Fund to the Department 29
of Health and Human Services, Division of Child Development and Early Education (Division), 30
the sum of ten million dollars ($10,000,000) in recurring funds for each year of the 2025-2027 31
fiscal biennium to increase funds for the child care subsidy program and provide for program 32
improvements, including, but not limited to, increasing compensation for the child care 33
workforce and ensuring that eligible families receive assistance through the elimination of 34
waitlists. 35
SECTION 6.2.(b) There is appropriated from the General Fund to the Department 36
of Health and Human Services, Division of Child Development and Early Education (Division), 37
the sum of seventy-eight million seven hundred thousand dollars ($78,700,000) in recurring 38
funds for each year of the 2025-2027 fiscal biennium to expand the Family Connects universal 39
home visiting model to local agencies statewide that choose to implement the program for their 40
community through local health departments or local Smart Start partnerships. Family Connects 41
is an evidence-based model that provides one to three home visits from a registered nurse to all 42
families who have newborns and live in a defined service area. 43
SECTION 6.2.(c) There is appropriated from the General Fund to the Department 44
of Health and Human Services, Division of Child Development and Early Education (Division), 45
the sum of forty-three million nine hundred thousand dollars ($43,900,000) in recurring funds 46
for the 2025-2026 fiscal year and the sum of forty million dollars ($40,000,000) in recurring 47
funds for the 2026-2027 fiscal year to conduct a pilot program of a State model for high-quality 48
early learning programs for eligible children from birth to 3 years of age, for 1,000 children each 49
year, with the intent to expand the program to additional locations. The pilot program and any 50 General Assembly Of North Carolina Session 2025
Page 44 House Bill 420-First Edition
subsequent expansion of the pilot program shall focus on high-poverty school districts across the 1
State. 2
3
EXPAND AND IMPROVE ACCESS TO INDIVIDUALIZED EARLY INTERVENTION 4
SERVICES FOR ELIGIBLE CHILDREN/NC INFANT -TODDLER PROGRAM 5
SECTION 6.3.(a) Funds for NC Infant-Toddler Program. – There is appropriated 6
from the General Fund to the Department of Health and Human Services, Division of Child and 7
Family Well-Being, Early Intervention Section, the sum of twenty million dollars ($20,000,000) 8
in recurring funds for the 2025-2026 fiscal year and the sum of twenty million dollars 9
($20,000,000) in recurring funds for the 2026-2027 fiscal year to provide funds for the North 10
Carolina Infant-Toddler Program, a program that provides support and services for families and 11
their children, from birth to 3 years of age, who have special needs. These funds shall be used to 12
take steps toward doing the following: 13
(1) Increasing State and local staffing in the provision of services to families with 14
infants and toddlers with developmental delays and established medical 15
conditions who are eligible for the NC Infant-Toddler Program. 16
(2) Expanding funding for interpreter services. 17
(3) Establishing a centralized provider network system. 18
(4) Providing professional development focused on early childhood mental 19
health. 20
(5) Addressing salary inequities affecting provider retention and recruitment. 21
SECTION 6.3.(b) Feasibility Study & Infrastructure Readiness 22
Assessment/Expansion of NC Infant-Toddler Program. – There is appropriated from the General 23
Fund to the Department of Health and Human Services, Division of Child and Family 24
Well-Being, Early Intervention Section, the sum of two hundred fifty thousand dollars 25
($250,000) in nonrecurring funds for the 2025-2026 fiscal year to be allocated as follows: 26
(1) One hundred fifty thousand dollars ($150,000) to conduct a feasibility study 27
to examine eligibility criteria and cost implications for expansion of the NC 28
Infant-Toddler Program. 29
(2) One hundred thousand dollars ($100,000) to conduct a system and 30
infrastructure readiness assessment to determine areas of need and system 31
challenges that need to be addressed before expanding the NC Infant-Toddler 32
Program. The Division of Public Health shall solicit public input and feedback 33
on the plan developed pursuant to this subdivision. 34
SECTION 6.3.(c) Scale Up Early Intervention Services. – There is appropriated 35
from the General Fund to the Department of Health and Human Services, Division of Child and 36
Family Well-Being, Early Intervention Section, the sum of one hundred eight million three 37
hundred thousand dollars ($108,300,000) in recurring funds for the 2025-2026 fiscal year and 38
the sum of one hundred sixty-two million five hundred thousand dollars ($162,500,000) in 39
recurring funds for the 2026-2027 fiscal year to provide high-quality early intervention services 40
and supports for up to an additional 30,000 children from birth to 3 years of age, who meet 41
expanded eligibility criteria for the Infant and Toddler Program implemented as a result of the 42
feasibility study conducted pursuant to subdivision (b)(1) of this section. The Early Intervention 43
Section may use up to five percent (5%) of these allocated funds to conduct a public awareness 44
campaign regarding expansion of eligibility for the NC Infant and Toddler Program, to increase 45
efforts to identify children eligible to receive services under this expanded program, and to create 46
partnerships with family support agencies. 47
48
INCREASE SMART START FUNDING 49
SECTION 6.4. There is appropriated from the General Fund to the Department of 50
Health and Human Services, Division of Child Development and Early Education, the sum of 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 45
three hundred seventeen million two hundred thousand dollars ($317,200,000) in recurring funds 1
for the 2025-2026 fiscal year and the sum of four hundred nineteen million six hundred thousand 2
dollars ($419,600,000) in recurring funds for the 2026-2027 fiscal year to gradually increase 3
funding for the North Carolina Partnership for Children, Inc., (Smart Start), with the goal of fully 4
funding Smart Start by the end of the 2027-2028 fiscal year. Funds allocated to the North 5
Carolina Partnership for Children, Inc., pursuant to this section, shall be distributed to Smart Start 6
local partnerships to improve statewide early child system infrastructure and support a cohesive 7
continuum of services for families and children from birth through 5 years of age. 8
9
INCREASE EARLY CHILDHO OD EDUCATOR WORKFORCE 10
SECTION 6.5.(a) Funds for WAGE$ and AWARD$ Programs. – There is 11
appropriated from the General Fund to the Department of Health and Human Services, Division 12
of Child Development and Early Education, the sum of thirty million five hundred thousand 13
dollars ($30,500,000) in recurring funds for the 2025-2026 fiscal year and the sum of thirty-two 14
million dollars ($32,000,000) in recurring funds for the 2026-2027 fiscal year to increase funding 15
for and expand participation statewide in the Child Care WAGE$ program and the Infant-Toddler 16
Educator AWARD$ program, both of which provide salary supplements for early childhood 17
educators. 18
SECTION 6.5.(b) Recruitment Strategies and Professional Development. – There is 19
appropriated from the General Fund to the Department of Health and Human Services, Division 20
of Child Development and Early Education, the sum of five million eight hundred thousand 21
dollars ($5,800,000) in recurring funds for the 2025-2026 fiscal year and the sum of seven million 22
three hundred thousand dollars ($7,300,000) in recurring funds for the 2026-2027 fiscal year to 23
implement strategies to recruit early childhood educators and provide ongoing professional 24
development, including coaching, technical assistance, assistance with degree attainment, and 25
licensure support. 26
27
FACILITATE RELIABLE ACCESS TO HIGH -QUALITY DATA SUPPORTING 28
EARLY CHILDHOOD EDUCATION 29
SECTION 6.6.(a) Real-Time Workforce Data System. – There is appropriated from 30
the General Fund to the Department of Health and Human Services, Division of Child 31
Development and Early Education, the sum of five hundred thousand dollars ($500,000) in 32
recurring funds for each year of the 2025-2027 fiscal biennium to develop and implement a 33
real-time workforce data system that supports building a pipeline of early childhood educators. 34
SECTION 6.6.(b) Expand and Improve Current Early Childhood Data Systems. – 35
There is appropriated from the General Fund to the Department of Health and Human Services, 36
Division of Child Development and Early Education (Division), the sum of five hundred 37
thousand dollars ($500,000) in recurring funds for each year of the 2025-2027 fiscal biennium to 38
expand and improve the North Carolina Early Childhood Integrated Data System (NC ECIDS) 39
and the North Carolina Early Childhood Action plan data dashboards to track child outcomes and 40
provide access to State data for State and local users and researchers with the goal of connecting 41
this data to the NC Longitudinal Data System (NCLDS). 42
SECTION 6.6.(c) Build Local Capacity/Early Childhood Data. – There is 43
appropriated from the General Fund to the Department of Health and Human Services 44
(Department), Division of Child Development and Early Education (Division), the sum of one 45
hundred fifty thousand dollars ($150,000) in recurring funds for each year of the 2025-2027 fiscal 46
biennium to collaborate with the Divisions of Social Services and Public Health, as appropriate, 47
in developing and implementing a plan to provide technical assistance to build local capacity to 48
use quality early childhood data across child health, child welfare, and early childhood education 49
for local planning. 50 General Assembly Of North Carolina Session 2025
Page 46 House Bill 420-First Edition
SECTION 6.6.(d) Real-Time Data Collection/Children Eligible for Early Childhood 1
Services. – There is appropriated from the General Fund to the Department of Health and Human 2
Services, Division of Child Development and Early Education, the sum of five hundred thousand 3
dollars ($500,000) in nonrecurring funds for the 2025-2026 fiscal year and the sum of two 4
hundred fifty thousand dollars ($250,000) in recurring funds for the 2026-2027 fiscal year to 5
develop and implement a real-time data collection and sharing process to identify children 6
eligible for early childhood programs, including the North Carolina Prekindergarten (NC Pre-K) 7
program and Early Intervention program, that allows for each of the following: 8
(1) The disaggregation along multiple variables, such as race, ethnicity, and 9
geography. 10
(2) The identification of the children most vulnerable to build a more equitable 11
early learning system. 12
13
PREKINDERGARTEN TO KINDERGARTEN TRANSITIONS 14
SECTION 6.7. There is appropriated from the General Fund to the Department of 15
Health and Human Services, Division of Child Development and Early Education (Division), the 16
sum of five million dollars ($5,000,000) in recurring funds for each year of the 2025-2027 fiscal 17
biennium to incrementally scale up the Pre-K to K Transitions program to serve all districts. 18
19
COLLABORATIVE FAMILY ENGAGEMENT PLANS 20
SECTION 6.8. There is appropriated from the General Fund to the Department of 21
Health and Human Services, Division of Child Development and Early Education (Division), the 22
sum of three hundred twenty thousand dollars ($320,000) in recurring funds for each year of the 23
2025-2027 fiscal biennium to provide ongoing support and technical assistance for establishing 24
local collaborative family engagement plans for birth through third grade. 25
26
REQUIRE LICENSURE FOR NC PRE -K LEAD TEACHERS 27
SECTION 6.9. By July 1, 2026, the Department of Health and Human Services, 28
Division of Child Development and Early Education, shall implement a policy to require that all 29
NC Prekindergarten (NC Pre-K) lead teachers hold an appropriate State teaching license as 30
specified by NC Pre-K policy. The policy shall also require that NC Pre-K lead teachers be paid 31
according to the State public school salary schedule by the 2026-2027 fiscal year. 32
33
PART VII. ALIGNMENT OF HIGH SCHOOL TO PO STSECONDARY AND CARE ER 34
EXPECTATIONS FOR ALL STUDENTS 35
36
REVISE NCVPS FUNDING 37
SECTION 7.1. There is appropriated from the General Fund to the Department of 38
Public Instruction the sum of thirteen million three hundred thousand dollars ($13,300,000) in 39
nonrecurring funds for the 2025-2026 fiscal year and sixteen million seven hundred thousand 40
dollars ($16,700,000) in nonrecurring funds for the 2026-2027 fiscal year to offset the costs for 41
local school administrative units and charter schools to remove barriers to student participation 42
in North Carolina Virtual Public Schools. The funds shall be allocated with a priority to cover 43
the costs of courses for students enrolled in public schools located in low-wealth counties. 44
45
SCHOOL CALENDAR FLEXIBILITY/CC CALENDAR 46
SECTION 7.2.(a) G.S. 115C-84.2(d) reads as rewritten: 47
"(d) Opening and Closing Dates. – Local boards of education shall determine the dates of 48
opening and closing the public schools under subdivision (a)(1) of this section. Except for 49
year-round schools, the opening date for students shall be no earlier than the Monday closest to 50
August 26, and the closing date for students shall be no later than the Friday closest to June 11. 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 47
On a showing of good cause, the State Board of Education may waive the requirement that the 1
opening date for students be no earlier than the Monday closest to August 26 and may allow the 2
local board of education to set an opening date no earlier than the Monday closest to August 19, 3
to the extent that school calendars are able to provide sufficient days to accommodate anticipated 4
makeup days due to school closings. A local board may revise the scheduled closing date if 5
necessary in order to comply with the minimum requirements for instructional days or 6
instructional time. For purposes of this subsection, the term "good cause" means that schools in 7
any local school administrative unit in a county have been closed eight days per year during any 8
four of the last 10 years because of severe weather conditions, energy shortages, power failures, 9
or other emergency situations. 10
The required opening and closing dates under this subsection shall not apply to any school 11
that a local board designated as having a modified calendar for the 2003-2004 school year or to 12
any school that was part of a planned program in the 2003-2004 school year for a system of 13
modified calendar schools, so long as the school operates under a modified calendar. 14
Notwithstanding the required opening and closing dates under this subsection, a local board 15
of education may align the calendar of schools in the local school administrative unit with the 16
calendar of a community college serving the city or county in which the unit is located." 17
SECTION 7.2.(b) This section is effective when it becomes law and applies 18
beginning with the 2025-2026 school year. 19
20
COLLEGE ADVISING CORPS/COLLEGE ADVISERS IN THE PUBLIC SCHOOLS 21
SECTION 7.3.(a) Purpose of the College Advising Corps Program. – From the funds 22
appropriated in subsection (b) of this section, the Board of Governors of The University of North 23
Carolina shall make funds available to the National College Advising Corps, Inc., (CAC) to 24
support an expansion of the placement of college advisers in North Carolina public schools 25
through their program over a three-year period. CAC is a college access nonprofit organization 26
with the mission to increase the number of underrepresented, low-income, or first-generation 27
postsecondary degree or certificate students entering and completing their postsecondary 28
education at community colleges and universities. In furthering this mission, CAC operates an 29
innovative model of partnering with schools, communities, families, and postsecondary 30
institutions, including providing for a two-year service opportunity to recent college graduates 31
as near-peer college advisers working full time in the public schools, with an emphasis on 32
engaging college advisers who have similar backgrounds to the students the program seeks to 33
serve. Near-peer college advisers perform various services for those students that are key 34
components to the proven success of the program, including (i) attending postsecondary campus 35
visits, fairs, and workshops with students, (ii) assisting with registering for college entrance 36
exams, (iii) assisting with Free Application for Federal Student Aid (FAFSA) registrations and 37
completions, (iv) identifying available scholarships, (v) assisting with postsecondary 38
applications, and (vi) engaging with parents. 39
SECTION 7.3.(b) Funds for the Program. – Due to the effectiveness of the 40
innovative model operated by CAC and the potential for significantly impacting the highest-need 41
students as described in subsection (a) of this section, the sum of three million dollars 42
($3,000,000) in recurring funds is appropriated from the General Fund to the Board of Governors 43
of The University of North Carolina for the 2025-2026 fiscal year to be provided to CAC for the 44
purpose of expanding the placement of college advisers in accordance with the requirements of 45
this section. 46
SECTION 7.3.(c) Use of Funds. – CAC shall focus the first two years of the 47
expansion of its program using the funds provided to it under this section by placing college 48
advisers in counties designated as tier one and tier two. For the third year of the expansion, CAC 49
shall use the funds provided to it to place college advisers in the remaining counties designated 50
as tier three in order to achieve placement of college advisers in all 100 counties of the State. In 51 General Assembly Of North Carolina Session 2025
Page 48 House Bill 420-First Edition
addition, CAC shall select at least three additional postsecondary institutions to partner with in 1
order to increase the number of recent graduates working as near-peer college advisers to meet 2
the needs of the program expansion. Once CAC has reached the goal of placement of college 3
advisers in 100 counties, the funds provided to it for the program shall be used to continue the 4
mission of the program to increase access for North Carolina public school students to 5
postsecondary degree or certificate attainment at community colleges and universities. 6
SECTION 7.3.(d) Reporting Requirements. – CAC shall submit a report by June 1 7
of each year in which CAC spends State funds made available to it pursuant to this section to the 8
Joint Legislative Education Oversight Committee and the Fiscal Research Division on the 9
progress of expanding the placement of college advisers, data on the effectiveness of the program 10
in increasing access for students to postsecondary education, and the use of State funds. 11
12
CAREER DEVELOPMENT COORDINATORS 13
SECTION 7.4. There is appropriated from the General Fund to the Department of 14
Public Instruction the sum of one hundred thousand dollars ($100,000) in recurring funds in the 15
2025-2026 fiscal year for a Career and Postsecondary Planning Director position in the 16
Department's career and technical education division to focus on career planning in grades five 17
through 12. There is also appropriated the sum of sixty-eight million dollars ($68,000,000) in 18
recurring funds for the 2025-2026 fiscal year and eighty-seven million dollars ($87,000,000) in 19
recurring funds for the 2026-2027 fiscal year to increase the number of school-based career 20
development coordinators for grades six through 12. 21
22
FUNDS TO REMOVE BARRIERS FOR ECONOMICALLY DISADVANTAGED 23
STUDENTS TO PARTICIPATE IN THE CAREER AND COLLEGE PROMISE 24
TRANSFER PATHWAY PROGRAM 25
SECTION 7.5. There is appropriated from the General Fund to the Department of 26
Public Instruction the sum of five million dollars ($5,000,000) in recurring funds for the 27
2025-2026 fiscal year to fund additional costs for all economically disadvantaged students 28
enrolled in the Career and College Promise Transfer Pathway Program in each year, including at 29
least the full costs of textbooks, transportation, meals on college campuses, fees, and technology. 30
If these funds are insufficient, the Department shall use additional unspent funds in the State 31
Public School Fund to fulfill this purpose. 32
33
PART VIII. MISCELLANEOUS 34
35
STATE BUDGET ACT APPLIES 36
SECTION 8.1. The provisions of the State Budget Act, Chapter 143C of the General 37
Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act 38
by reference. 39
40
EFFECT OF HEADINGS 41
SECTION 8.2. The headings to the Parts, subparts, and sections of this act are a 42
convenience to the reader and are for reference only. The headings do not expand, limit, or define 43
the text of this act, except for effective dates referring to a Part or subpart. 44
45
SEVERABILITY CLAUSE 46
SECTION 8.3. If any section or provision of this act is declared unconstitutional or 47
invalid by the courts, it does not affect the validity of this act as a whole or any part other than 48
the part so declared to be unconstitutional or invalid. 49
50
EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
House Bill 420-First Edition Page 49
SECTION 8.4. Except as otherwise provided, this act becomes effective July 1, 1
2025. 2