Bill > S439

This bill imposes a moratorium on the Opportunity Scholarships program, which provides school choice funding in North Carolina. Starting in the 2025-2026 fiscal year, the State Education Assistance Authority will not award new scholarship grants to students who did not previously receive them, with the intent of completely eliminating the program by the 2037-2038 school year or when all current recipients become ineligible. The bill significantly reduces funding for the Opportunity Scholarships program, cutting $30 million from the University of North Carolina's allocation, $28.46 million in nonrecurring funds, and $83.46 million in recurring funds for the 2025-2026 fiscal year, with an additional $50 million reduction in recurring funds for the 2026-2027 fiscal year. The bill also limits future funding increases for the scholarship program to match the annual percentage increase in public school funding. To offset these reductions, the bill appropriates $113.46 million in recurring and nonrecurring funds to the Department of Public Instruction for local school administrative units in the 2025-2026 fiscal year, with an additional $50 million in recurring funds for the 2026-2027 fiscal year. The act will become effective on July 1, 2025, and apply to the 2025-2026 school year and beyond.

https://www.ncleg.gov/BillLookUp/2025/S439