GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S D
SENATE BILL DRS35167-MTa-43
Short Title: Add Home Schools to Opportunity Scholarships. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to:
*DRS35167 -MTa-43*
A BILL TO BE ENTITLED 1
AN ACT TO PERMIT OPPORTUNITY SCHOLARSHIPS TO BE AWARDED TO 2
STUDENTS IN HOME SCHOOL S AND TO APPROPRIATE FUNDS FOR THAT 3
PURPOSE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.(a) G.S. 115C-562.1 reads as rewritten: 6
"§ 115C-562.1. Definitions. 7
The following definitions apply in this Part: 8
(1) Authority. – The State Education Assistance Authority. 9
(2) Division. – The Division of Nonpublic Education, Department of 10
Administration. 11
(3) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 12
(3a) Eligible student. – A student residing in North Carolina who has not yet 13
received a high school diploma and who meets all of the following 14
requirements: 15
a. Is eligible to attend a North Carolina public school pursuant to Article 16
25 of this Chapter. A child who is the age of 4 on or before April 16 is 17
eligible to attend the following school year if the principal, or 18
equivalent, of the school in which the child seeks to enroll finds that 19
the student meets the requirements established by the Authority 20
pursuant to G.S. 115C-562.2(d) and those findings are submitted to the 21
Authority. 22
b. Has not been enrolled in a postsecondary institution as a full-time 23
student taking at least 12 hours of academic credit. 24
c. Has not been placed in a nonpublic school or facility by a public 25
agency at public expense. 26
(3c) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 27
(3d) Home school. – A nonpublic school that meets the requirements of Part 3 of 28
Article 39 of this Chapter, as identified by the Division. 29
(4) Local school administrative unit. – A local school administrative unit, charter 30
school, or regional school. 31
(5) Nonpublic school. – A school that meets the requirements of Part 1 or Part 2 32
Part 1, Part 2, or Part 3 of this Article as identified by the Division. 33
(5c) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 34
(5d) Private school. – A school that meets the requirements of Part 1 or Part 2 of 35
this Article as identified by the Division. 36
FILED SENATE
Mar 24, 2025
S.B. 389
PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRS35167-MTa-43
(5e) Reserve. – The Opportunity Scholarship Grant Fund Reserve established 1
under G.S. 115C-562.8. 2
(6) Scholarship grants. – Grants awarded annually by the Authority to eligible 3
students." 4
SECTION 1.(b) G.S. 115C-562.2 reads as rewritten: 5
"§ 115C-562.2. Scholarship grants. 6
(a) The Authority shall make available no later than February 1 annually applications to 7
eligible students for the award of scholarship grants to attend any nonpublic school on a full- or 8
part-time basis. Information about scholarship grants and the application process shall be made 9
available on the Authority's Web site. Beginning March 15, the Authority shall begin awarding 10
scholarship grants to students who have applied by March 1 in the following order: 11
(1) Eligible students who received a scholarship grant for the school year prior to 12
the school year for which the students are applying. 13
(2) Eligible students qualifying for a scholarship grant in the amount provided 14
under subdivision (1) of subsection (b2) of this section.residing in households 15
with an income level not in excess of the amount required for the student to 16
qualify for the federal free or reduced-price lunch program. 17
(3) Eligible students qualifying for a scholarship grant in the amount provided 18
under subdivision (2) of subsection (b2) of this section.residing in households 19
with an income level between the amount required for the student to qualify 20
for the federal free or reduced-price lunch program and not in excess of two 21
hundred percent (200%) of that amount. 22
(4) Eligible students qualifying for a scholarship grant in the amount provided 23
under subdivision (3) of subsection (b2) of this section.residing in households 24
with an income level of between two hundred percent (200%) of the amount 25
required for the student to qualify for the federal free or reduced-price lunch 26
program and not in excess of four hundred fifty percent (450%) of that 27
amount. 28
(5) All other students. 29
… 30
(b2) Scholarship grants shall be awarded to eligible students as follows: 31
(1) For students enrolled in private schools: 32
(1)a. For students residing in households with an income level not in excess 33
of the amount required for the student to qualify for the federal free or 34
reduced-price lunch program, per year per eligible student, an amount 35
of up to one hundred percent (100%) of the average State per pupil 36
allocation for average daily membership in the prior fiscal year. 37
(2)b. For students residing in households with an income level between the 38
amount required for the student to qualify for the federal free or 39
reduced-price lunch program and not in excess of two hundred percent 40
(200%) of that amount, per year per eligible student, an amount of up 41
to ninety percent (90%) of the average State per pupil allocation for 42
average daily membership in the prior fiscal year. 43
(3)c. For students residing in households with an income level of between 44
two hundred percent (200%) of the amount required for the student to 45
qualify for the federal free or reduced-price lunch program and not in 46
excess of four hundred fifty percent (450%) of that amount, per year 47
per eligible student, an amount of up to sixty percent (60%) of the 48
average State per pupil allocation for average daily membership in the 49
prior fiscal year. 50 General Assembly Of North Carolina Session 2025
DRS35167-MTa-43 Page 3
(4)d. For all students, per year per eligible student, an amount of up to 1
forty-five percent (45%) of the average State per pupil allocation for 2
average daily membership in the prior fiscal year, unless the student 3
qualifies for a higher amount under this subsection. 4
(2) For students enrolled in home schools, per year per eligible student, an amount 5
of up to twenty-five percent (25%) of the average State per pupil allocation 6
for average daily membership in the prior fiscal year. 7
(b3) Tuition Scholarship grant funds may be used for tuition and fees for a nonpublic 8
school of a private school and required costs of a home school. Tuition and fees of a private 9
school may include tuition and fees for books, transportation, equipment, or other items required 10
by the nonpublic private school. Required costs of a home school include costs for books, 11
equipment, and other required items, but do not include tuition, fees, or transportation. 12
(b4) No scholarship grant shall exceed the required tuition and fees for the private school 13
the eligible student will attend. No scholarship grant shall exceed, per year per eligible student, 14
any of the following: 15
(1) For students in private school, an amount equal to one hundred percent (100%) 16
of the average State per pupil allocation for average daily membership in the 17
prior fiscal year, and no scholarship grant shall exceed the required tuition and 18
fees for the nonpublic school the eligible student will attend.year. 19
(2) For students in home school, an amount equal to twenty-five percent (25%) 20
of the average State per pupil allocation for average daily membership in the 21
prior fiscal year. 22
…." 23
SECTION 1.(c) G.S. 115C-562.4 reads as rewritten: 24
"§ 115C-562.4. Identification of nonpublic schools and distribution of scholarship grant 25
information. 26
(a) The Division shall provide annually by December 31 to the Authority a list of all 27
nonpublic schools operating in the State that meet both of the requirements of Part 1 or Part 2 of 28
this Article and State and all nonpublic schools operating in the State that meet the requirements 29
of G.S. 115C-562.5(a)(8). The Division shall notify the Authority of any schools included in the 30
list that the Division has determined to be ineligible within five business days of the 31
determination of ineligibility. The Division shall create, in collaboration with the Authority, a 32
unique identifier for each nonpublic school and provide the unique identifiers to the Authority 33
for all nonpublic schools that are registered with the Division. 34
…." 35
SECTION 1.(d) G.S. 115C-562.5 reads as rewritten: 36
"§ 115C-562.5. Obligations of nonpublic schools accepting eligible students receiving 37
scholarship grants. 38
(a) A nonpublic school that accepts eligible students receiving scholarship grants shall 39
comply with the following:comply with the requirements of this section as follows: 40
(1) Provide A nonpublic school shall provide to the Authority documentation for 41
the expenses of an eligible student as follows: 42
a. The required tuition and fees charged to the student by the nonpublic 43
private school. 44
b. The required costs of the student in a home school. 45
(2) Provide A private school shall provide to the Authority a criminal background 46
check conducted for the staff member with the highest decision-making 47
authority, as defined by the bylaws, articles of incorporation, or other 48
governing document. Information provided to the Authority in accordance 49
with this subdivision is privileged information and is not a public record but 50
is for the exclusive use of the Authority. 51 General Assembly Of North Carolina Session 2025
Page 4 DRS35167-MTa-43
(3) Provide A private school shall provide to the parent or guardian of an eligible 1
student, whose tuition and fees are paid in whole or in part with a scholarship 2
grant, an annual written explanation of the student's progress, including the 3
student's scores on standardized achievement tests. 4
(4) Administer, A nonpublic school shall administer, at least once in each school 5
year, tests as provided in this subdivision. Test performance data shall be 6
submitted to the Authority by July 15 of each year. Test performance data 7
reported to the Authority under this subdivision is not a public record under 8
Chapter 132 of the General Statutes. Tests shall be administered to all eligible 9
students enrolled in grades three and higher whose tuition and fees are paid in 10
whole or in part with a scholarship grant as follows: 11
a. The nationally standardized test designated by the Authority in grades 12
three and eight. 13
b. The ACT in grade 11. 14
c. A nationally standardized test or other nationally standardized 15
equivalent measurement selected by the chief administrative officer of 16
the nonpublic school private school or parent of the home school in all 17
other grades four and higher. For grades four through seven, the 18
nationally standardized test or other equivalent measurement selected 19
must measure achievement in the areas of English grammar, reading, 20
spelling, and mathematics. For grades nine, 10, and 12, the nationally 21
standardized test or other equivalent measurement selected must 22
measure either (i) achievement in the areas of English grammar, 23
reading, spelling, and mathematics or (ii) competencies in the verbal 24
and quantitative areas. 25
(5) Provide A nonpublic school shall provide to the Authority graduation rates of 26
the students receiving scholarship grants in a manner consistent with 27
nationally recognized standards. 28
(6) Contract A private school shall contract with a certified public accountant to 29
perform a financial review, consistent with generally accepted methods of 30
accounting or any other comprehensive basis of accounting recognized by the 31
American Institute of Certified Public Accountants (AICPA) for each school 32
year in which the school enrolls 70 or more students receiving scholarship 33
grants or scholarship funds awarded by the Authority. 34
(7) Maintain A nonpublic school shall maintain a school facility or home within 35
the State where in-person instruction is provided. This subdivision does not 36
prohibit a school from offering remote-only courses of instruction in addition 37
to in-person instruction. 38
(8) Provide A nonpublic school shall provide the following information annually 39
to the Division: 40
a. Name and address of the school, including physical location address. 41
A school with more than one physical location shall establish a 42
separate notice of intent for each physical location and shall provide 43
all information required by this subdivision for each physical location. 44
b. The name of the owners and chief administrator.administrator or of the 45
parent or parents providing instruction. 46
c. Number of students in attendance at the school as of October 1. 47
(b) A nonpublic private school that accepts students receiving scholarship grants shall 48
not require any additional fees based on the status of the student as a scholarship grant recipient. 49 General Assembly Of North Carolina Session 2025
DRS35167-MTa-43 Page 5
(c) A nonpublic private school enrolling more than 25 students in any grade whose tuition 1
and fees are paid in whole or in part with a scholarship grant shall provide and retain information 2
on student test performance in each grade with more than 25 students, as follows: 3
(1) Report to the Authority on the aggregate standardized test performance of 4
eligible students in grades three, eight, and 11. Aggregate test performance 5
data reported to the Authority which does not contain personally identifiable 6
student data shall be a public record under Chapter 132 of the General Statutes. 7
Test performance data may be shared with public or private institutions of 8
higher education located in North Carolina and shall be provided to an 9
independent research organization selected by the Authority for research 10
purposes as permitted by the Federal Education Rights and Privacy Act, 20 11
U.S.C. § 1232g. 12
(2) Retain standardized test performance data for eligible students in all other 13
grades and annually certify to the Authority compliance with the requirements 14
of subdivision (4) of subsection (a) of this section. 15
(c1) A nonpublic school shall not discriminate with respect to the categories listed in 42 16
U.S.C. § 2000d, as that statute read on January 1, 2014. 17
(d) If the Authority determines that a nonpublic school is not in compliance with the 18
requirements of this section, the nonpublic school shall be ineligible to receive future scholarship 19
funds. The nonpublic A private school shall notify the parent or guardian of any enrolled student 20
receiving a scholarship grant that the nonpublic private school is no longer eligible to receive 21
future scholarship grants. The Authority shall establish by rule a process for a nonpublic school 22
to appeal for reconsideration of eligibility after one year. To ensure compliance, the Board of 23
Directors of the Authority shall review the criminal history provided under subdivision (2) of 24
subsection (a) of this section to ensure that the person has not been convicted of any crime listed 25
in G.S. 115C-332. The Board shall determine through this review whether the nonpublic private 26
school is noncompliant with this section. The Board shall make written findings with regard to 27
how the criminal history information was used when making the compliance determination. The 28
Board of Directors may delegate any of the duties in this subsection to the Executive Director of 29
the Authority. As part of its review, the Board shall determine whether the results indicate that 30
the staff member has any of the following disqualifying characteristics: 31
(1) Poses a threat to the physical safety of students or personnel. 32
(2) Demonstrates that he or she does not have the integrity or honesty to fulfill his 33
or her duties in overseeing State funds and the requirements of the scholarship 34
grant program. 35
(3) Has not fully satisfied the criminal sentencing obligations imposed following 36
his or her conviction by a court of competent jurisdiction. 37
(e) If a nonpublic school terminates operation during the school's regular schedule and 38
fails to (i) report the date of the closure to the Division within 14 days and (ii) return funds owed 39
to the Authority in a timely manner for students who received scholarship grants, any other 40
nonpublic school opened during that school year or subsequent school years by an owner or chief 41
administrator owner, chief administrator, or parent listed in the report submitted to the Division 42
under subdivision (8) of subsection (a) of this section for that closed school shall be ineligible to 43
receive scholarship grants until such time the Authority determines the obligation to return those 44
funds has been satisfied." 45
SECTION 1.(e) G.S. 115C-562.6 reads as rewritten: 46
"§ 115C-562.6. Scholarship endorsement. 47
The Authority shall remit, at least two times each school year, scholarship grant funds 48
awarded to eligible students to the nonpublic school school. Scholarship grant funds awarded to 49
eligible students to a private school shall be remitted for endorsement by at least one of the 50
student's parents or guardians. The parent or guardian shall restrictively endorse the scholarship 51 General Assembly Of North Carolina Session 2025
Page 6 DRS35167-MTa-43
grant funds awarded to the eligible student for deposit into the account of the nonpublic private 1
school to the credit of the eligible student. The parent or guardian shall not designate any entity 2
or individual associated with the nonpublic private school as the parent's attorney-in-fact to 3
endorse the scholarship grant funds. A parent's or guardian's failure to comply with this section 4
shall result in forfeit of the scholarship grant. A scholarship grant forfeited for failure to comply 5
with this section shall be returned to the Authority to be awarded to another student." 6
SECTION 2.(a) There is appropriated from the General Fund to the Opportunity 7
Scholarship Grant Fund Reserve the following amounts in additional recurring dollars for each 8
of the following fiscal years: 9
Fiscal Year Appropriation 10
2025-2026 $220,000,000 11
2026-2027 $240,000,000 12
SECTION 2.(b) G.S. 115C-562.8(b), as amended by Section 6.4(c) of S.L. 2024-55, 13
reads as rewritten: 14
"(b) The General Assembly finds that, due to the critical need in this State to provide 15
opportunity for school choice for North Carolina students, it is imperative that the State provide 16
an increase of funds for 15 years to the Opportunity Scholarship Grant Fund Reserve. Therefore, 17
there is appropriated from the General Fund to the Reserve the following amounts for each fiscal 18
year to be used for the purposes set forth in this section: 19
Fiscal Year Appropriation 20
2017-2018 $44,840,000 21
2018-2019 $54,840,000 22
2019-2020 $64,840,000 23
2020-2021 $74,840,000 24
2021-2022 $84,840,000 25
2022-2023 $94,840,000 26
2023-2024 $176,540,000 27
2024-2025 $191,540,000 28
2025-2026 $625,000,000 29
2026-2027 $675,000,000 30
2027-2028 $700,000,000$960,000,000 31
2028-2029 $725,000,000$1,000,000,000 32
2029-2030 $750,000,000$1,025,000,000 33
2030-2031 $775,000,000$1,050,000,000 34
2031-2032 $800,000,000$1,075,000,000 35
For the 2032-2033 fiscal year and each fiscal year thereafter, there is appropriated from the 36
General Fund to the Reserve the sum of eight hundred twenty-five million dollars ($825,000,000) 37
one billion one hundred million dollars ($1,100,000,000) to be used for the purposes set forth in 38
this section. When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 39
specified in this subsection, the Director of the Budget shall include the appropriated amount 40
specified in this subsection for that fiscal year." 41
SECTION 3. This act becomes effective July 1, 2025, and applies to applications 42
for scholarship grants beginning with the 2026-2027 school year. 43