GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 941 Short Title: Expand & Enhance the Teaching Fellows Program. (Public) Sponsors: Representatives Ball, Prather, Johnson-Hostler, and von Haefen (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 April 14, 2025 *H941 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO EXPAND AND ENHANCE THE NORTH C AROLINA TEACHING FELLOWS 2 PROGRAM. 3 Whereas, the pursuit of teaching is the pursuit of excellence, and excellent teachers 4 are not just born, they are developed, equipped, trained, and valued; and 5 Whereas, all students in North Carolina deserve to be taught by excellent teachers; 6 and 7 Whereas, the North Carolina Teaching Fellows Program has an important legacy in 8 North Carolina, providing the best and brightest students the opportunity to have a place of 9 influence and distinction by elevating them to a vital role – the role of a teacher; and 10 Whereas, based on the sorely inadequate and regularly declining enrollment in teacher 11 preparation programs and an accelerating teacher turnover rate, North Carolina is facing an 12 overwhelming teacher shortage across the State, especially in rural counties; and 13 Whereas, the teacher shortage is a growing crisis for our entire educational system as 14 well as the future of our State; and 15 Whereas, to solve this problem and provide stable, talented, motivated, and excellent 16 teachers in our classrooms, we need to continue to rebuild the North Carolina Teaching Fellows 17 Program; Now, therefore, 18 The General Assembly of North Carolina enacts: 19 20 PART I. REVISE TEACHING FELLOWS PROGRAM 21 SECTION 1. Part 3 of Article 23 of Chapter 116 of the General Statutes reads as 22 rewritten: 23 "Part 3. North Carolina Teaching Fellows Program. 24 "§ 116-209.60. Definitions. 25 The following definitions apply in this Part: 26 … 27 (5a) Qualifying licensure area. – A teacher licensure area in one of the following 28 subjects: 29 a. Either of the following, as identified pursuant to G.S. 116-209.62(h): 30 1. Special education. 31 2. Stem. 32 b. Elementary education (K-6). 33 c. Middle Grades Language Arts. 34 General Assembly Of North Carolina Session 2025 Page 2 House Bill 941-First Edition d. Middle Grades Social Studies. 1 e. English (9-12). 2 f. Social Studies (9-12). 3 g. History (9-12). 4 … 5 "§ 116-209.62. North Carolina Teaching Fellows Program established; administration. 6 … 7 (b) Trust Fund. – There is established the North Carolina Teaching Fellows Program 8 Trust Fund to be administered by the Authority, in conjunction with the System Office of The 9 University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program 10 for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, 11 and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the 12 Trust Fund is to provide financial assistance to qualified students for completion of teacher 13 education and licensure programs to fill teach in qualifying licensure areas in the public schools 14 of the State. 15 (c) Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only 16 for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the 17 Program, including recruitment and recovery of funds advanced under the Program, (iii) 18 mentoring and coaching support to forgivable loan recipients, and (iv) extracurricular 19 enhancement activities of the Program in accordance with the following: 20 (1) The Authority shall transfer the greater of six hundred thousand dollars 21 ($600,000) or ten percent (10%) the following amounts of the available funds 22 from the Trust Fund to The University of North Carolina System Office at the 23 beginning of each fiscal year year: 24 a. The greater of six hundred thousand dollars ($600,000) or ten percent 25 (10%) for the Program's administrative costs, the salary of the Director 26 of the Program and other Program staff, expenses of the Commission, 27 and to provide the Commission with funds to use for the 28 extracurricular enhancement activities of the Program.staff, and 29 expenses of the Commission. 30 b. The sum of up to six hundred thousand dollars ($600,000) for 31 extracurricular enhancement activities of the Program, including (i) 32 summer programs to maintain year-round connections and (ii) alumni 33 programs to foster continued engagement after graduation. These 34 activities should be geared to instilling a strong motivation not only to 35 remain in teaching but to provide leadership for tomorrow's schools. 36 c. The sum of up to five hundred thousand dollars ($500,000) for the 37 Director of the Program to implement the recruitment activities 38 identified in subsection (d) of this section. 39 … 40 (f) Program Selection Criteria. – The Authority shall administer the Program in 41 cooperation with up to 10 14 institutions of higher education with approved educator preparation 42 programs selected by the Commission that represent a diverse selection of both postsecondary 43 constituent institutions of The University of North Carolina and private postsecondary 44 institutions operating in the State. The Commission shall adopt stringent standards for selection 45 of the most effective educator preparation programs, including the following: 46 (1) Demonstrates high rates of educator effectiveness on value-added models and 47 teacher evaluations, including using performance-based, subject-specific 48 assessment and support systems, such as edTPA or other metrics of evaluating 49 candidate effectiveness that have predictive validity. 50 General Assembly Of North Carolina Session 2025 House Bill 941-First Edition Page 3 (2) Demonstrates measurable impact of prior graduates on student learning, 1 including impact of graduates teaching in qualifying licensure areas. 2 (3) Demonstrates high rates of graduates passing exams required for teacher 3 licensure. 4 (4) Provides curricular and co-curricular enhancements in leadership, facilitates 5 learning for diverse learners, and promotes community engagement, 6 classroom management, and reflection and assessment. 7 (5) Requires at least a minor concentration of study in the subject area that the 8 candidate may teach. 9 (6) Provides early and frequent internship or practical experiences, including the 10 opportunity for participants to perform practicums in diverse school 11 environments. 12 (7) Is approved by the State Board of Education as an educator preparation 13 program. 14 (8) For an educator preparation program enrolling loan recipients in a program of 15 study leading to licensure in elementary education (K-6), provides training 16 that is aligned with the Science of Reading in accordance with 17 G.S. 115C-269.20. The Commission shall contract with a third-party entity to 18 biennially evaluate whether a program identified in this subdivision is 19 providing training that is aligned with the Science of Reading. 20 (g) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 21 students to be used at up to 10 14 selected institutions for completion of a program leading to 22 initial teacher licensure as follows: 23 (1) North Carolina high school seniors. – Forgivable loans of up to five thousand 24 dollars ($5,000) per semester for up to eight semesters.twelve thousand dollars 25 ($12,000) per academic year for up to four academic years. 26 (2) Students applying for transfer to a selected educator preparation program at 27 an institution of higher education. – Forgivable loans of up to five thousand 28 dollars ($5,000) per semester for up to six semesters.twelve thousand dollars 29 ($12,000) per academic year for up to four academic years. 30 (3) Individuals currently holding a bachelor's degree seeking preparation for 31 teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000) 32 per semester for up to four semesters.twelve thousand dollars ($12,000) per 33 academic year for up to two academic years. 34 (4) Students matriculating at institutions of higher education who are changing to 35 an approved program of study at a selected educator preparation program. – 36 Forgivable loans of up to five thousand dollars ($5,000) per semester for up 37 to four semesters.twelve thousand dollars ($12,000) per academic year for up 38 to four academic years. 39 Forgivable loans may be used for tuition, fees, room, board, the cost of books, and expenses 40 related to obtaining licensure. 41 … 42 "§ 116-209.63. Terms of forgivable loans; receipt and disbursement of funds. 43 … 44 (b) Forgiveness. – For every year a qualifying teacher remains a qualifying teacher, the 45 Authority shall forgive the loan amount received over one year of enrollment in an educator 46 preparation program and any interest accrued on that amount. 47 The Authority shall also forgive the loan if it finds that it is impossible for the recipient to 48 work for up to eight four years, within 10 years after completion of the program leading to teacher 49 licensure, at a North Carolina public school because of the death or permanent disability of the 50 recipient. If the recipient repays the forgivable loan by cash payments, all indebtedness shall be 51 General Assembly Of North Carolina Session 2025 Page 4 House Bill 941-First Edition repaid within 10 years after completion of the program leading to teacher licensure supported by 1 the forgivable loan. If the recipient completes a program leading to teacher licensure, payment 2 of principal and interest shall begin no later than the first day of September after the completion 3 of the program. Should a recipient present extenuating circumstances, the Authority may extend 4 the period to repay the loan in cash to no more than a total of 12 years." 5 6 PART II. ADDITIONAL INSTITUTIONS OF HIGHER EDUCATION 7 SECTION 2. For the initial selection of the additional four institutions of higher 8 education to be selected by the North Carolina Teaching Fellows Commission pursuant to 9 G.S. 116-209.62(f), as amended by Part I of this act, to participate in the Program, the 10 Commission shall ensure that the following additional criteria are met: 11 (1) Two of the additional four selected institutions shall be constituent institutions 12 of The University of North Carolina and two shall be private postsecondary 13 institutions operating in the State. 14 (2) The additional four selected institutions shall reflect a wider statewide 15 geographic diversity than the current participating institutions. 16 17 PART III. PRIOR TEAC HING FELLOWS PROGRAM REVISIONS APPLY 18 RETROACTIVELY TO ALL TEACHING FELLOWS 19 SECTION 3.(a) Subsection (c) of Section 8A.4 of S.L. 2023-134 reads as rewritten: 20 "SECTION 8A.4.(c) This section applies to applications for the award of funds beginning 21 in the 2024-2025 academic year.year for all persons participating in the Program, including 22 teachers who are continuing or entering service repayment beginning in the 2024-2025 academic 23 year." 24 SECTION 3.(b) Section 2.14(b) of S.L. 2024-1 reads as rewritten: 25 "SECTION 2.14.(b) This section is effective July 1, 2023, and applies to applications for 26 the award of funds beginning in the 2024-2025 academic year.year for all persons participating 27 in the Program, including teachers who are continuing or entering service repayment beginning 28 in the 2024-2025 academic year." 29 30 PART IV. APPROPRIATION 31 SECTION 4. There is appropriated from the General Fund to the North Carolina 32 Teaching Fellows Program Trust Fund the sum of ten million dollars ($10,000,000) in recurring 33 funds for the 2025-2026 fiscal year to revise the NC Teaching Fellows Program in accordance 34 with Part I of this act. 35 36 PART V. EFFECTIVE DATE 37 SECTION 5. This act becomes effective July 1, 2025. Except as otherwise provided, 38 this act applies beginning with the 2025-2026 academic year. 39