North Carolina HB 56: 2026 Budget Technical Corrections.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-42
HOUSE BILL 56

*H56-v-5*
AN ACT TO MAKE TECHNICAL, CLARIFYING, AND OTHER CHANGES TO THE
CURRENT OPERATIONS APPROPRIATIONS ACT OF 2026 AND TO OTHER ACTS.

The General Assembly of North Carolina enacts:

PART I. DISASTER RELIEF

DISASTER RELIEF TECHNICAL CORRECTIONS
SECTION 1.1.(a) If Senate Bill 257, 2025 Regular Session, becomes law, then
Section 5A.2(a)(2)a. of that act reads as rewritten:
"a. Eight million dollars ($8,000,000) previously allocated for capital
recovery funds for public school facilities in accordance with Section
2.1(a) of S.L. 2024-53 and the Committee Report described in Section
6.1 of that act.Section 2A.3(a) of S.L. 2025-26."
SECTION 1.1.(b) Notwithstanding Section 5A.2(a)(2) of Senate Bill 257, 2025
Regular Session and the Committee Report referenced in Section 45.2 of that act, if Senate Bill
257, 2025 Regular Session, becomes law, of the programs and funds identified to be transferred
to the Helene fund in Section 5A.2(a)(2) of Senate Bill 257, 2025 Regular Session, if a specified
budget fund has insufficient funds to satisfy the specified transfer, the Department of Public
Instruction shall fully realize the total amount of Helene-related reductions in the Committee
Report from other fund balances that remain within Budget Code 23510 from prior
Helene-related appropriations.

FUNDING ADJUSTMENT/TOWN OF FAIR BLUFF RIVERWALK PROJECT
SECTION 1.2. If Senate Bill 257, 2025 Regular Session, becomes law, then,
notwithstanding any provision of that act or the Committee Report described in Section 45.2 of
that act to the contrary, Section 5A.11(a) of that act reads as rewritten:
"SECTION 5A.11.(a) Transfer. – The State Controller shall transfer five million dollars
($5,000,000) four million five hundred thousand dollars ($4,500,000) from Budget Code 24558,
Budget Fund 206842, to OSBM for the Town of Fair Bluff for the riverwalk project that was
destroyed."

PART II. EDUCATION

CLARIFY TERMS FOR ENTITIES IDENTIFIED IN PUBLIC SCHOOL
REINVESTMENT FUND PROVISION
SECTION 2.1. If Senate Bill 257, 2025 Regular Session, becomes law, then Section
7.60(a) of that act reads as rewritten:
"SECTION 7.60.(a) The General Assembly finds that the State has realized a savings from
students formerly enrolled in a nonpublic public school unit of the State using scholarship grants
to enroll in a private nonpublic school due to the expansion of eligibility for the scholarship grants
awarded from the Opportunity Scholarship Grant Reserve Fund pursuant to Part 2A of Article

Page 2 Session Law 2026-42 House Bill 56
39 of Chapter 115C of the General Statutes. The Department of Public Instruction has identified
a savings of thirty-five million seven hundred fifty-one thousand four hundred nine dollars
($35,751,409) for the 2024-2025 and 2025-2026 fiscal years based on the difference between the
total amount of funds used for an opportunity scholarship grant award that is less than one
hundred percent (100%) of the average State per pupil allocation for average daily membership
for a student in a public school unit. Consistent with the intent of the General Assembly stated in
Section 7.82(c) of S.L. 2023-134, the nonrecurring savings identified by the Department of
Public Instruction shall be reinvested to support the following purposes:
(1) The sum of seventeen million twenty thousand eight hundred eleven dollars
($17,020,811) for a one-time bonus of one thousand seven hundred fifty
dollars ($1,750) for locally and federally funded school nutrition and custodial
personnel.
(2) The sum of thirteen million eight hundred thousand dollars ($13,800,000) for
middle school literacy professional development.
(3) The sum of ten million dollars ($10,000,000) to be used for the North Carolina
Collaboratory to acquire mathematics curriculum from another state that has
developed its own mathematics curriculum and to conform those materials to
align with the North Carolina Standard Course of Study for use in
kindergarten through eighth grade mathematics classes in the public schools
of the State."

TECHNICAL CORRECTION TO STATE TEXTBOOK FUND SUNSET REDUCTION
SECTION 2.3. If Senate Bill 257, 2025 Regular Session, becomes law, then,
notwithstanding the Committee Report referenced in Section 45.2 of that act, funds appropriated
to the Department of Public Instruction for the 2026-2027 fiscal year shall be modified as
follows:
(1) The reduction in the requirements of the Department of Public Instruction in
Budget Code 73510, Budget Fund 700100, for State Textbook Fund Sunset
shall be decreased by the sum of eight hundred thirty-six thousand five
hundred ninety-four dollars ($836,594) in recurring funds. The total revised
reduction shall be the sum of fifty-nine million four hundred nine thousand
eight hundred fifty-nine dollars ($59,409,859).
(2) The reduction in receipts by the Department of Public Instruction in Budget
Code 73510, Budget Fund 700100, for State Tex