The North Carolina Senate returned to Raleigh on Tuesday and Wednesday this week to pass additional corrections and adjustments to the comprehensive budget signed by Governor Stein on July 7. The H268: 2026 Budget Technical Corrections – II Conference Report was agreed upon by both chambers and will be voted on by the House upon their return next week.
 
The Senate also passed SJR 1091: Adjournment Resolution, outlining the schedule for the remainder of the 2026 legislative session to include Aug. 31-Sept. 2, Sept. 28-30, Oct. 26-28, Nov. 16-19, and Nov. 30, with final adjournment sine die on Dec. 18. Lawmakers shared that voting sessions are unlikely to occur before November.
 
The impact of H268 is largely technical but has a couple of substantive changes of note, which include the establishment of the North Carolina High School Redesign Commission within the Department of Public Instruction (DPI) to explore and recommend changes to policies and systems governing high school and higher education. The law outlines key responsibilities for the 15-member Commission and requires annual reporting to the Joint Legislative Education Oversight Committee (JLEOC) by April 30, 2027.
 
H268 also allocates $250,000 to DPI to administer a Competitive Speech and Debate Grant Program. Any public school unit (PSU) serving students in grades 9 through 12 is eligible to apply for funding to develop, maintain, or expand an educational and competitive speech and debate team.
 
Additional provisions within H268 are summarized below.
 
Section 3.5, Technical Change to Workforce Diploma Program Reporting – Amends Section 6.8(e) of SL 2026-41 to remove the Office of Learning Research at the University of North Carolina (UNC) as a recipient of the State Board of Education’s report on the Workforce Diploma Program.
 
Section 3.6, Adjust Apprenticeship Study Report Deadline – Amends Section 6.5 of SL 2026-41 to extend the ApprenticeshipNC report deadline to the JLEOC from Dec. 31, 2026 to March 15, 2027.
 
Section 3.7, Technical Correction to Reference for Shifting Transfer of Supplemental Exceptional Children Funding for the Regional School – Makes a technical correction to statute numbering of GS 115C-229.55(d)(2) as referenced in and enacted by Section 7.57(c) of SL 2026-41.
 
Section 3.8, Change to Budget Fund Reduction for the North Carolina Association of School Business Officials – Changes the Budget Code for specified funds reduced from DPI to contract with the North Carolina Association of School Business Officials.
 
Section 3.9, Permit TeachReadyNC Program to Begin in the 2026-2027 School Year – Amends Section 7.24(l) of SL 2026-41 to direct DPI to issue the initial request for applications for the TeachReadyNC Program by Oct. 1, 2026, and establish the registered teacher apprenticeship programs to begin operating in the 2026-2027 school year, instead of the beginning of the 2027-28 school year.
 
Section 3.10, Clarify Liability of Governing Bodies of Public School Units Related to Cardiac Emergency Response Plans and Use of AEDs – Amends GS 115C-375.6(e) as enacted by SL 2026-41 (liability under cardiac emergency response plan) to apply to any governing body of a PSU, its members, designees, agents, volunteers or employees, instead of just any PSU employee.
 
Section 3.11, Clarify Allowable Number of Hours for Released Time Instruction – Amends GS 115C-407.45(6) as enacted by SL 2026-41 (time limitations for released time religious instruction) to provide that a PSU shall authorize excused absences for at least one, but no more than four, hours of released time religious instruction per calendar week.
 
Section 3.12, North Carolina High School Redesign Commission – Establishes the North Carolina High School Redesign Commission within DPI to explore and recommend changes to policies and systems governing high school and higher education that will better prepare North Carolina students for success as they transition to higher education or the workforce. Requires the Commission to report annually to the JLEOC by April 30, 2027, and specifies report contents. Terminates the Commission on June 30, 2031, or upon filing its final annual report.
 
Section 3.13, Allow Friday Institute to Carryforward Nonrecurring Funds for AI Professional Development Modules – Adds new subsection 7.39(r) to SL 2026-41 by specifying that the $400,000 in nonrecurring funds appropriated to the Board of Governors of UNC for 2026-27 to be allocated to North Carolina State University for the Friday Institute to implement AI professional development models do not revert at the end of the 2026-27 fiscal year and shall remain available until the end of the 2027-28 fiscal year.
 
Section 3.14, Clarify Bonuses for School Nutrition and Custodial Personnel – Amends Section 7A.13 of SL 2026-41 (bonuses for school nutrition and custodial personnel) to clarify that all school nutrition and custodial personnel employed by (previously in) local school administrative units are eligible for a $1,750 bonus. Excludes individuals working in a local school administrative unit whose employer is not the local school administrative unit.
 
Section 3.15, Remove Deadline for Educator Preparation Program Rule Adoption – Repeals Sections 7(b) and 7(f) of SL 2017-189 (regarding establishment of rules and accountability status for Educator Preparation Programs (EPPs)) and Section 4 of SL 2019-149 (regarding rule and reporting requirements). Requires the State Board of Education, in consultation with the UNC System Office, the Community Colleges System Office, and the North Carolina Independent Colleges and Universities, to report to the JLEOC on recommendations for an EPP accountability model by Oct. 15, 2026.
 
Section 3.17, Extend Deadline for Public School Open Enrollment Study – Extends the deadline for the North Carolina Collaboratory to submit findings of public school open enrollment study to the JLEOC from April 17, 2027 to June 1, 2027.
 
Section 3.21, Clarify Applicability of Early Graduate High School Scholarship Funds – Amends Section 8A.13 of SL 2026-41 to clarify that the Reserve Fund for Early Graduate Scholarships shall be used to provide scholarships beginning in the 2027-28 academic year for students graduating in the 2025-2026 school year.
 
Section 3.24, Specify Procedure Following Removal of an Educator Preparation Program from the Teaching Fellows Program – Amends GS 116-209.62(f1) as enacted by Section 8.5 of SL 2026-41 (reevaluation of teaching fellows programs) to add that the Director of the Program shall notify the State Education Assistance Authority (SEAA) of any EPP removed from the North Carolina Teaching Fellows Program by Feb. 1 prior to the academic year in which the program will no longer be eligible. Provides that any selected student eligible to receive a loan in the next academic year who is enrolled in the removed program may continue to receive a forgivable loan for Program completion leading to initial teacher licensure or transfer to another selected institution with Director approval.
 
Section 3.26, Competitive Speech and Debate Grant Program – Adds new Section 7.64 to Part VII of SL 2026-41 titled “Competitive Speech and Debate Grant Program.” Establishes Program for the 2026-27 school year and sets out Program purpose. Provides that the Program is to be administered by DPI.
 
Provides that any PSU that includes a school serving students in grades 9-12 is eligible to apply for a grant to develop, maintain, or expand an educational and competitive speech and debate team. Provides that DPI shall award grants by Oct. 31, 2026, up to a maximum of $10,000 per team per school year and sets out authorized uses for grant funds. Requires teams receiving Program funds to participate in the Tarheel Forensic League and the National Speech and Debate Association. Provides that a student at a school without a speech and debate team may participate on the team at the closest public school that is participating in the Program. Requires DPI to report on five specified criteria to the JLEOC and Fiscal Research Division by May 15, 2027.
 
Increases the funds appropriated to the DPI by $250,000 in nonrecurring funds for 2026-27 to administer the Program.
 
Section 5.1, Transfer Farm to School Funding – Changes the recipient of funds for the North Carolinian Farm to School program from DPI to the Department of Agriculture and Consumer Services.