First in Flight Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1096

Short Title: First in Flight Act. (Public)
Sponsors: Representatives Reives, Ross, Loftis, and Cervania (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 30, 2026
*H1096-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE AVIATION CAPITAL PR OJECT ACCOUNT AND TH E ONE 2
NORTH CAROLINA CAPITAL PROJECT PROGRAM, TO CREATE THE AEROSPACE 3
APPRENTICESHIP PROGR AM AND AEROSPACE DUA L ENROLLMENT 4
PROGRAMS, TO PROVIDE VARIOUS STATE AGENC IES WITH FUNDING TO 5
SUPPORT THE AEROSPACE INDUSTRY AND AIRPORT INFRASTRUCTURE, AND 6
TO APPROPRIATE FUNDS FOR THOSE PURPOSES. 7
Whereas, North Carolina holds a singular place in the history of aviation as First in 8
Flight, when Wilbur and Orville Wright launched the fir st controlled, sustained flight of a 9
powered, heavier-than-air aircraft at Kill Devil Hills near Kitty Hawk, North Carolina, and that 10
legacy remains a source of pride, economic strength, and technological leadership for the State; 11
and 12
Whereas, the aerospace industry offers high -wage employment opportunities across 13
manufacturing, maintenance, repair, overhaul, avionics, research, logistics, and related fields; 14
and 15
Whereas, continued growth in the aerospace sector depends upon modern airport 16
infrastructure, r eady industrial sites, efficient supply chains, and strong partnerships among 17
employers, airports, community colleges, and institutions of higher education; and 18
Whereas, North Carolina is well -positioned to compete for additional aerospace 19
investment by al igning workforce training, apprenticeship opportunities, dual -enrollment 20
pathways, university research capacity, and targeted infrastructure improvements; and 21
Whereas, supporting airport authorities and aerospace businesses can strengthen 22
regional economies, expand opportunities in both urban and rural communities, and promote 23
long-term job creation throughout the State; and 24
Whereas, investments in aerospace education and applied research will help ensure 25
that North Carolina develops the skilled workforce a nd innovation ecosystem necessary to 26
remain competitive in a rapidly evolving industry; and 27
Whereas, it is in the best interest of the State to make strategic investments that 28
reinforce North Carolina's historic leadership in aviation and position the Stat e for continued 29
success in aerospace manufacturing, aerospace research, and related economic development; 30
Now, therefore, 31
The General Assembly of North Carolina enacts: 32
33
PART I. AVIATION INVESTMENT GRANT 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1096-First Edition
SECTION 1.(a) There is appropriated from the General Fund to the Department of 1
Commerce the sum of five million dollars ($5,000,000) in nonrecurring funds for the 2026-2027 2
fiscal year to be allocated to the One North Carolina Aviation Capital Project Account under 3
G.S. 143B-437.71(d), as created by subsection (b) of this section. 4
SECTION 1.(b) G.S. 143B-437.71 is amended by adding a new subsection to read: 5
"(d) One North Carolina Aviation Capital Project Account. – There is created in the One 6
North Carolina Fund a special account, the One North Carolina Aviation Capital Project Account, 7
to be used for the One North Carolina Aviation Capital Project Program, as specified in Part 2K 8
of Article 10 of Chapter 143B of the General Statutes." 9
SECTION 1.(c) Article 10 of Chapter 143B of the General Statutes is amended by 10
adding a new Part to read: 11
"Part 2K. One North Carolina Aviation Capital Project Program. 12
"§ 143B-437.125. One North Carolina Aviation Capital Project Program. 13
(a) Program. – There is established the One North Carolina Aviation Capital Project 14
Program to be administered by the Department in consultation with the North Carolina 15
Department of Transportation, Division of Aviation . In order to modernize the State 's airport 16
infrastructure and improve capacity for aerospace manufacturing, maintenance, repair, overhaul, 17
and advanced aerospace research and design, the Department may provide grants to airport s to 18
offset costs incurred for airport projects in accordance with this section. Grants under this section 19
shall be paid from the One North Carolina Aviation Capital Project Account established in 20
G.S. 143B-437.71. 21
(b) Definitions. – The following definitions apply in this section: 22
(1) Airport. – As defined in G.S. 63-1. 23
(2) Airport facility. – As defined in G.S. 143-215.57A. 24
(3) Airport project. – As defined in G.S. 143-215.57A. 25
(4) Department. – The Department of Commerce. 26
(5) Eligible aerospace business. – A business that (i) designs, manufactures, 27
repairs, or operates aircraft and (ii) has entered into a company performance 28
agreement approved by the Department in accordance with this section. 29
(6) Program. – The One North Carolina Aviation Capital Project Program created 30
by this section. 31
(c) Eligible Recipient; Allowable Uses . – Airports may receive funding under the 32
Program. Funding may be disbursed to airport authorities only for airport projects. 33
(d) Agreements Required. – Prior to the disbursement of funds under this section , the 34
airport shall (i) enter into a grant agreement with the State, in substantially the same manner 35
provided by, and except to the extent inconsistent with, G.S. 143B-437.72(c), regarding local 36
government grant agreements , and (ii) enter into a company performance agreement with an 37
eligible aerospace business, in substantially the same manner provided by, and except to the 38
extent inconsistent with, G.S. 143B-437.72(b), regarding company performance agreements. 39
Funds may only be disbursed under the Program to the airport after the airport has demonstrated 40
that the eligible aerospace business has complied with the terms of the company performance 41
agreement. The State shall disburse funds under the Program in accordance with the disbursement 42
schedule established in the grant agreement with the State. 43
(e) Program Guidelines. – The Department shall develop guidelines related to the 44
administration of the Program which shall include, at a minimum, a provision or provisions 45
requiring that grants under the Program shall be awarded on a competitive basis based upon, at a 46
minimum, the projected economic impact of the airport project . At least 20 days before the 47
effective date of any guidelines or nontechnical amendments to guidelines, the Department must 48
publish the proposed guidelines on the Department's website and provide notice to persons who 49
have requested notice of proposed guidelines. In addition, the Department must accept oral and 50
written comments on the proposed guidelines during the 15 business days beginning on the first 51
General Assembly Of North Carolina Session 2025
House Bill 1096-First Edition Page 3
day that the Departme nt has completed these notifications. For the purpose of this section, a 1
technical amendment is either of the following: 2
(1) An amendment that corrects a spelling or grammatical error. 3
(2) An amendment that makes a clarification based on public comment and could 4
have been anticipated by the public notice that immediately preceded the 5
public comment." 6
7
PART II. AEROSPACE WORKFORCE DEVELOPMENT PROGRAM 8
9
COMMUNITY COLLEGE AEROSPACE PROGRAM 10
SECTION 2.1. There is appropriated from the General Fund to the Community 11
Colleges System Office the sum of twenty -five million dollars ($25,000,000) in nonrecurring 12
funds for the 2026-2027 fiscal year to be allocated to community colleges to be used to create or 13
expand training programs for careers in the aerospace workforce. The System Office may use up 14
to five percent (5%) of funds appropriated in this section for administrative costs associated with 15
creating or expanding training programs pursuant to this section, including marketing campaigns 16
to spread awareness of programs created or expanded pursuant to this section. 17
18
AEROSPACE APPRENTICESHIP PROGRAM 19
SECTION 2.2.(a) Program Established. – There is established the Aerospace 20
Apprenticeship Program (Program). The p urpose of the Program is to provide grants to 21
employers in the aerospace sector to incentivize the formation of partnerships with local 22
community colleges for apprenticeship opportunities. 23
SECTION 2.2.(b) Application; Selection of Partners. – The Community Colleges 24
System Office shall make an application publicly available by August 1, 2026, to be completed 25
by employers seeking to participate in the Program. Applications shall be submitted by 26
September 1, 2026. Incentive grants shall be awarded to employer s to the extent funds are 27
available for that purpose. The System Office shall prioritize applications that include a higher 28
percentage of employer matching funds, apprenticeship programs that culminate in a credential 29
or job offer, and programs that lead t o stackable credentials that build off existing programs in 30
the State and align with existing career pathways and nationally recognized aviation standards. 31
Applications for participation in the Program shall include at least the following: 32
(1) Employers provide at least fifty percent (50%) of the value of the grant award 33
as matching funds to support the apprenticeship. 34
(2) Structured apprenticeships lasting at least six months in duration. 35
(3) Apprenticeships aligning with high -demand aerospace fields, incl uding 36
airframe and powerplant mechanics, avionics technicians, composites, and 37
precision machining. 38
(4) Commitment to offer interviews or hiring preference to graduates who 39
successfully complete the apprenticeship. 40
SECTION 2.2.(c) There is appropriated from the General Fund to the Community 41
Colleges System Office the sum of fifteen million dollars ($15,000,000) in nonrecurring funds 42
for the 2026-2027 fiscal year to be used to provide grants pursuant to this section. The System 43
Office may use up to five per cent (5%) of funds appropriated in this section for administrative 44
costs associated with administering the Program, including marketing campaigns to spread 45
awareness of the Program. 46
47
AEROSPACE DUAL-ENROLLMENT PROGRAMS 48
SECTION 2.3.(a) The Community College s System Office shall use up to five 49
million dollars ($5,000,000) of the funds appropriated in this section to develop a dual enrollment 50
pilot program to enable high school students to begin coursework toward completion of a 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1096-First Edition
certification in the aerospace sector. The System Office may use up to five percent (5%) of funds 1
allocated pursuant to this subsection for administrative costs, including marketing campaigns to 2
spread awareness of the pilot program created pursuant to this section. 3
SECTION 2.3.(b) The Community Colleges System Office shall use up to five 4
million dollars ($5,000,000) of the funds appropriated in this section to provide grants to 5
community colleges that partner with high schools to offer career and technical education 6
pathways aligned wi th aerospace training to cover the cost of expenses associated with 7
establishing those programs. The System Office may use up to five percent (5%) of funds 8
allocated pursuant to this subsection for administrative costs, including marketing campaigns to 9
spread awareness of pathways offered pursuant to this section. 10
SECTION 2.3.(c) There is appropriated from the General Fund to the Community 11
Colleges System Office the sum of ten million dollars ($10,000,000) in nonrecurring funds for 12
the 2026-2027 fiscal year for the purposes established pursuant to this section. 13
14
PART III. AEROSPACE HUB PROGRAM 15
SECTION 3.1. There is appropriated from the Economic Development Project 16
Reserve established in Section 2.2 of S.L. 2021 -180 to the Department of Transportation, 17
Aviation Division, for the 2026 -2027 fiscal year the sum of one hundred million dollars 18
($100,000,000) in nonrecurring funds to support airport infrastructure modernization geared 19
toward incentivizing aerospace manufacturing projects. Up to five percent (5 %) of the funds 20
appropriated by this section may be used for administrative and marketing expenses consistent 21
with the purposes for which the funds were appropriated. 22
SECTION 3.2. The Department of Commerce shall develop a program to certify 23
sites in the State as aerospace innovation zones using, at a minimum, infrastructure and embedded 24
university partnerships as criteria for certification. For purposes of this section, "aerospace 25
innovation zone" refers to geographically concentrated areas designed to foster collaboration and 26
innovation within the aerospace industry. 27
28
PART IV. AEROSPACE RESEARCH GRANTS 29
SECTION 4. There is appropriated from the General Fund to the Board of Governors 30
of The University of North Carolina the sum of thirty million dollars ($3 0,000,000) in 31
nonrecurring funds for the 2026-2027 fiscal year to provide grants to postsecondary constituent 32
institutions of The University of North Carolina to research aerospace flight. In awarding these 33
grants, the Board shall prioritize the award of f unds to constituent institutions that (i) conduct 34
research in partnership with third -party industry leaders in the field of aerospace flight or (ii) 35
secure matching funds for aerospace research from one or more non -State sources. Up to five 36
percent (5%) of the funds appropriated by this section may be used for administrative and 37
marketing expenses consistent with the purposes for which the funds were appropriated. 38
39
PART V. SUPPLY CHAIN SUPPORT 40
SECTION 5. There is appropriated from the General Fund to the n onprofit 41
corporation with which the Department of Commerce contracts pursuant to G.S. 143B-431.01 42
the sum of one hundred thousand dollars ($100,000) in nonrecurring funds for the 2026 -2027 43
fiscal year to establish a program for helping North Carolina -based aerospace companies with 44
export assistance and Federal Aviation Administration certification. 45
46
PART VI. EFFECTIVE DATE 47
SECTION 6. This act becomes effective July 1, 2026. 48