North CarolinaHB 1252025-2026 SessionHouseWALLET

AN ACT ADOPTING THE MORAVIAN STAR AS THE OFFICIAL STATE STAR.

Sponsored By: Kyle Hall (Republican), Donny Lambeth (Republican), Erin Paré (Republican), Donna McDowell White (Republican)

Signed by Governor

ACCOUNTINGAGRICULTURAL INSPECTIONAGRICULTUREAGRICULTURE DEPT

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 14 benefits, 4 costs, 6 mixed.

More farm disaster aid and repairs

The state provides $142,000,000 in 2025–26 for the Agricultural Disaster Crop Loss Program for verified 2024 losses. $25,000,000 of that is reserved only for verified farm infrastructure losses. The usual discretion does not limit this $25,000,000, and the program can fund current and new applicants.

More aid and funding for colleges

Need‑based scholarships get $98,418,512 each year in 2025‑27. NC Promise enrollment support is $9,500,000 each year for the named universities. Community colleges receive $74,998,603 each year for enrollment growth. UNC institutions get $2,867,222 each year for operations and maintenance, plus $516,664 one time in 2025‑26. NCSSM gets $1,600,000 one time for temporary housing, and Wilson Community College gets $10,000,000 one time for a biologics training center.

More K‑12 funding for schools

The state adds $104,248,624 each year for K‑12 funding fixes in 2025‑27. School Technology gets $18,000,000 each year, and Drivers Education gets $31,493,768 each year. The State Public School Fund gets $186,041,640 in 2025‑26 and $166,041,640 in 2026‑27. The Education Lottery sends about $1.08 billion each year to school programs. The state also provides $9,400,000 each year to improve the student information and reporting system.

State budget and capital projects funded

The law funds the 2025‑2027 base budget for agencies listed in the Governor’s recommended budget, as adjusted by the General Assembly. It also provides $823,565,897 one time in 2025‑26 for 34 listed capital projects. If this act conflicts with G.S. 143C‑5‑4, this act controls starting July 1, 2025. These appropriations stay in place until the Current Operations Appropriations Act becomes law, and then allotments are adjusted from July 1. Except as otherwise stated, this act is retroactive to July 1, 2025.

Big cuts to school buses and programs

The law lowers state money for school buses by $160,807,612 in 2025–26 and $164,647,612 in 2026–27. It cuts $9,122,184 each year from programs including reduced‑price meal copays ($3,000,000), Small Specialty High Schools, Learn and Earn, Plasma Games, and Beginnings. It trims classroom supplies by $2,500,000 each year and removes a one‑time $12,000,000 in 2025–26. It also removes a one‑time $20,000,000 from the State Public School Fund in 2025–26. The state shifts $40,000,000 from the Textbook Fund and lowers General Fund support by the same amount, so schools do not get extra money.

Less college aid for many students

The law cuts need‑based scholarships for public colleges by $74,972,548 each year in 2025–27. It also cuts $11,070,964 each year from the Children of Wartime Veterans Scholarship. The Longleaf Commitment community college grant loses $12,375,000 each year, and another $125,000 is removed. The UNC system faces another $3,500,000 recurring cut tied to nonresident graduate tuition waivers.

New help and standards for internet access

Starting July 1, 2025, a low‑cost broadband plan must offer at least 100 Mbps down, 20 Mbps up, latency at or below 100 ms, no nongovernmental surcharges, and a price at or below the FCC’s 2024 Urban Rate Survey cap (with yearly CPI updates). “Reliable” service must be terrestrial, with 95% of latency tests at or under 100 ms and average outages under 48 hours a year; areas served only by satellite or some fixed wireless count as unserved. The Utilities Commission can designate mobile providers as Lifeline carriers on petition, which can expand discounts for low‑income households. Grants help eligible entities buy satellite installation materials for their own use in disaster‑hit counties; grants cannot pay for internet subscriptions.

New rules for broadband grants

Beginning July 1, 2025, the state runs a competitive process for broadband grants with a published 100‑point score. Highest scores win; ties go to projects serving the most new unserved or underserved locations. The Office must follow federal BEAD rules, post its cost‑threshold method for public comment, and not use that threshold in the first round unless funds are short. A BEAD Reserve Fund holds federal money and only transfers to the deployment fund as needed, under federal rules.

Child care aid shifts to TANF funds

The state reduces General Fund support for child care subsidies by $8,000,000 a year in 2025–27. It replaces that amount with federal TANF block grant money. The law does not change who qualifies or how benefits are calculated.

New limits on UNC repair projects

Starting July 1, 2025, no single UNC repair or renovation project may cost more than $15,000,000 unless listed in law. Money meant for one campus can be used only for repairs at that same campus. Prior rules for R&R21 funds apply during 2025–27, and the Board must report to lawmakers.

Free school meals for reduced‑price students

Local school boards must give free meals to students who qualify for reduced‑price lunch or breakfast. If other funds are not enough, the state education agency can use State Aid for Public Schools to pay. This covers lunch, and breakfast if the school offers it.

Emergency broadband repair funds

The Department of Information Technology can fund providers to rebuild, repair, or replace broadband damaged by Hurricane Helene. Providers can only recover costs not covered by insurance or other sources. The Department may cap reimbursements and must prioritize restoring service. Up to $50 million may be used, following federal rules, with emergency procurement allowed and documentation of the need. This starts July 1, 2025.

Faster access to nonutility poles

For poles not owned by a utility, owners must act in good faith on complete access requests. They must survey, give a good‑faith estimate within 60 days (valid 14 days), and do agreed make‑ready work after acceptance and payment. Related disputes go to the Utilities Commission, which must issue a final order within 120 days unless all parties agree to more time. These rules start July 1, 2025, and do not cover utility‑owned poles.

Help with broadband pole costs

Communications service providers can get reimbursed for half of each eligible pole replacement or undergrounding cost, up to $10,000 per pole. Costs must be paid or incurred after June 1, 2021, and projects must serve unserved areas. Key terms, like what is “unserved,” follow the FCC 25/3 Mbps threshold and include some disaster areas (effective July 1, 2025). The program begins August 6, 2025. The Department must post program data within 60 days of funding and update it each quarter.

Who can get satellite grants

Only certain groups can get grants to buy satellite installation materials. Eligible applicants are state agencies, local governments, volunteer fire departments, and anchor points. This takes effect July 1, 2025.

ARPA funds can cover older hospital costs

Starting July 1, 2025, ARPA funds already moved for UNC Health Blue Ridge can cover eligible costs from before July 1, 2023. The spending must match the original purpose of the funds.

Yancey County school rebuild money

Effective June 27, 2025, $25,000,000 goes to Yancey County to rebuild public schools damaged by Hurricane Helene. Schools must have sought insurance and have damage not covered by federal aid.

One-time funds for Johnston airport and patrol

On July 1, 2025, the state moves $8.3 million to the Highway Fund for Johnston Regional Airport. The money pays for capital work, equipment, and moving State Highway Patrol aviation.

Less money for nursing faculty pay

The law cuts $1,123,659 each year from community college nursing faculty salary adjustments in 2025–27. Colleges have less money for pay adjustments for nursing faculty.

Less funding for loan repayment help

The law cuts $2,000,000 each year from the North Carolina Loan Repayment Program in 2025–27. Fewer eligible professionals may get loan repayment help.

Moves state IT under one department

Starting July 1, 2025, the State CIO must move IT staff, systems, projects, assets, and funding from participating agencies to the Department of Information Technology. The Department of Public Safety participates, but the State Bureau of Investigation and Division of Emergency Management do not. The State CIO must keep agency services running during the transfer.

Repeals three prior budget sections

The law repeals Section 7.58 of S.L. 2023‑134, Section 7.69 of S.L. 2023‑134 (as amended), and subsection (b) of Section 7.28 of S.L. 2023‑134. No replacement funding or programs are stated here. Household impacts are not clear from this text alone.

Stronger rules for state disaster aid

Recipients must use best efforts to get other money first, like insurance, federal aid, or private donations. Contracts must include those duties. If recipients later get other funds for the same loss, they must repay the State up to the amount received; agencies send repayments to the Savings Reserve. OSBM and the State Auditor must report these funds, including on a public dashboard. The Governor cannot reallocate these funds and must protect eligibility for federal aid. Agriculture‑related funds follow existing program reporting rules, except one excluded subsection.

Updates to broadband programs and funding

The Department of Information Technology can move money between certain broadband programs if the total stays the same and the original purpose is honored. The law also repeals two older statutes (G.S. 143B‑1373.2 and 143B‑1374), ending those parts of the prior GREAT program. These updates take effect July 1, 2025.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.