Workforce Act of 2026.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1163

Short Title: Workforce Act of 2026. (Public)
Sponsors: Representatives Blackwell, Lambeth, Paré, and Schietzelt (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Education - K-12, if favorable, Appropriations, if favorable, Rules, Calendar, and
Operations of the House
May 4, 2026
*H1163-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE FO R THE CONTINUATION A ND EXPANSION OF PROG RAMS 2
AND SERVICES PROVIDE D BY THE STATE FOR W ORKFORCE DEVELOPMENT 3
AND TO APPROPRIATE FUNDS FOR THOSE PURPOSES. 4
The General Assembly of North Carolina enacts: 5
6
PART I. TITLE AND INTRODUCTION 7
SECTION 1.(a) Title. – This act shall be known and may be cited as the "Workforce 8
Act of 2026." 9
SECTION 1.(b) Introduction. – The appropriations made in this act are for the 10
amounts necessary to modernize education -to-workforce pathways across the State, to improve 11
credit acquisition and transfer for students, strengthen career information sharing among 12
institutions of higher education and employers, and expand employer -recognized credentials to 13
provide faster, clearer routes to credential completion and career success. 14
15
PART II. APPRENTICESHIP NC SUPPORT 16
SECTION 2.(a) Findings. – The General Assembly finds that work -based learning 17
is of value to learners as well as employers; that apprenticeship is a highly effective work-based 18
learning model and provides a significant return on investment; that continued growth of 19
apprenticeship is important to the State's economy; that ApprenticeshipNC is critical to 20
increasing the number of employers participating in apprenticeships as well as the numb er of 21
registered apprentices in North Carolina; that continued growth of apprenticeship is at risk 22
without adequate support for ApprenticeshipNC; and that additional State support is necessary 23
to sustain apprenticeship growth. 24
SECTION 2.(b) Appropriation. – There is appropriated from the General Fund to 25
the Community Colleges System Office the sum of three million one hundred thousand dollars 26
($3,100,000) in recurring funds beginning with the 2026-2027 fiscal year for the administration 27
of the ApprenticeshipNC program. 28
29
PART III. NC WORKFORCE CREDENTIALS 30
31
NC WORKFORCE CREDENTIALS OPERATIONAL EXPENSES AND STAFFING 32
SECTION 3.1.(a) Findings. – The General Assembly finds that, due to the critical 33
importance to the State of identifying industry-valued credentials, promoting programs of study 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1163-First Edition
leading to industry-valued credentials, and aligning industry-valued credentials and programs of 1
study leading to those credentials with federal Workforce Pell Grant implementation, it is 2
necessary that the State provide funds to the Department of Commerce (Department) to develop 3
and maintain a list of industry-valued credentials, to continually determine programs of study to 4
meet workforce needs, and to ensure alignment to federal Workforce Pell Grants. 5
SECTION 3.1.(b) Appropriation. – There is appropriated from the General Fund to 6
the Department the sum of three hundred fifty thousand dollars ($350,000) in recurring funds, 7
beginning with the 2026 -2027 fiscal year, for operational expenses and staffing to support NC 8
Workforce Credentials in accordance with this section and G.S. 143B-438.10. 9
SECTION 3.1.(c) Data Coordination. – The Department shall engage with 10
employers to provide workforce data and participate in efforts to link data on industry -valued 11
credentials to labor market outcomes, including: 12
(1) Labor market demand. 13
(2) Job placement and Standard Occupational Classification or similar data 14
reflecting employment-in-field. 15
(3) Wage outcomes. 16
(4) Stackability capacity for credentials to count toward and build into more 17
advanced career credentials. 18
(5) Work location, collected on a voluntary basis and in a manner consistent with 19
applicable State and federal privacy protections, to support aggregated 20
analysis of regional workforce outcomes, talent retention, and analysis o f 21
education and career pathways alignment with local labor market demand. 22
SECTION 3.1.(d) Stakeholder Consultation. – As part of its efforts to link data on 23
industry-valued credentials to labor market outcomes, the Department shall consult with the 24
North Carolina Community Colleges System Office, The University of North Carolina System 25
Office, and other relevant interested parties to ensure alignment with rules and regulations 26
pertaining to federal Workforce Pell Grants and to take steps to institutionaliz e workforce data 27
sharing across State government. 28
SECTION 3.1.(e) Longitudinal Data. – As part of its efforts to link data on 29
industry-valued credentials to labor market outcomes, the Department shall require issuers of 30
those credentials to submit data pertaining to credentials issued to the North Carolina 31
Collaboratory and the North Carolina Longitudinal Data System for inclusion in the System's 32
Licenses and Credentials Data Warehouse to enhance the State's ability to retrieve and link those 33
data to labor market outcomes. 34
SECTION 3.1.(f) Wage-Outcome Prioritization. – In developing and maintaining 35
the list of industry -valued credentials, the Department shall give substantial weight to 36
demonstrated wage outcomes and evidence that credential attainment pr ovides a positive return 37
on investment for students. 38
SECTION 3.1.(g) Outreach. – Of the funds appropriated to the Department under 39
subsection (b) of this section, the Department may use up to fifty thousand dollars ($50,000) each 40
fiscal year for outreach and communications consistent with the purposes of this section, 41
including to contract with non-State entities for outreach and communications. 42
43
ADDITIONAL FUNDS FOR SHORT -TERM WORKFORCE DEVELOPMENT 44
GRANTS 45
SECTION 3.2.(a) Findings. – The General Assembly finds that, due to the critical 46
need in this State to provide financial aid for students pursuing industry -valued credentials, 47
including in programs of study that are not eligible for federal Workforce Pell Grants, it is in the 48
State's interest to provide an increase of funds to the North Carolina Community College 49
Short-Term Workforce Development Grant Program. 50
SECTION 3.2.(b) G.S. 115D-10.19 is amended by adding a new subsection to read: 51
General Assembly Of North Carolina Session 2025
House Bill 1163-First Edition Page 3
"(e) Administrative Costs. – The North Carolina Community Colleges System Office may 1
use up to four percent (4%) of the funds appropriated for the Program for administrative costs 2
associated with administration of the Program." 3
SECTION 3.2.(c) Appropriation. – There is appropriated from the General Fund to 4
the Community Colleges System Office the sum of one million dollars ($1,000,000) in recurring 5
funds beginning with the 2026 -2027 fiscal year for the Short -Term Workforce Development 6
Grant Program. 7
8
PART IV. SEAMLESS POSTSECONDARY TRANSFER 9
10
INCLUDE NORTH CAROLINA INDEPENDENT COLLEGES AND UNIVERSITIES IN 11
COMMON DIGITAL TRANSCRIPT 12
SECTION 4.1. The State Education Assistance Authority, in consultation with the 13
Department of Public Instruction, t he Community Colleges System Office, The University of 14
North Carolina System Office, the North Carolina Independent Colleges and Universities, the 15
College Foundation, Inc., and the Department of Information Technology, shall incorporate the 16
private colleges and universities located in this State into the common digital transcript developed 17
pursuant to Section 8A.15 of S.L. 2023 -134. No later than March 15, 2027, the Authority shall 18
report to the Joint Legislative Education Oversight Committee on the progress made toward this 19
goal, including at least the following information: 20
(1) Any additional steps to be taken for this purpose and a time line for completing 21
those steps and publishing the transcript to students enrolled at private 22
colleges and universities in this State. 23
(2) Estimates of any additional costs needed to expand the common digital 24
transcript to private colleges and universities. 25
26
EXPANSION OF POSTSECONDARY TRANSFER TECHNOLOGY 27
SECTION 4.2.(a) Findings. – The General Assembly makes the following findings 28
regarding the current state of postsecondary transfer technology at institutions of higher 29
education in North Carolina: 30
(1) Seamless postsecondary transfer and reverse transfer reduces barriers for 31
learners and aligns to statewide economic and workforce goals. 32
(2) The Current Operations Appropriations Act of 2023, S.L. 2023 -134, 33
authorized and supported statewide postsecondary data and technology 34
initiatives to improve student outcomes, including transfer efficiency. 35
(3) Expanding technology to sup port the transfer of student credits among and 36
between institutions of higher education will reduce the time it takes for 37
students to earn a degree and reduce costs. 38
(4) Successful postsecondary transfer and reverse transfer is necessary to achieve 39
the postsecondary attainment goal established in G.S. 116C-10. 40
(5) Additional investment is necessary to scale and integrate technology 41
supporting seamless postsecondary transfer and reverse transfer. 42
SECTION 4.2.(b) Initiative; Administration. – For the 2026 -2027 academic year, 43
The University of North Carolina System Office, in collaboration with the Community Colleges 44
System Office and the Department of Information Technology, shall expand the current initiative 45
(Initiative) to accelerate the transfer of course credits among postsecondary institutions of higher 46
education using postsecondary transfer technology. This expanded Initiative shall provide and 47
improve technology at participating institutions of higher education that will simplify the credit 48
transfer process for students, advisors, and the participating institutions. The expanded Initiative 49
shall allow students to easily compare credit transfer options, speed up student decision making, 50
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1163-First Edition
and streamline transfer planning and progress toward degrees in a ma nner that reduces overall 1
costs for students in the State. 2
SECTION 4.2.(c) Appropriation. – There is appropriated from the Information 3
Technology Reserve to the Board of Governors of The University of North Carolina the sum of 4
two million five hundred thousand dollars ($2,500,000) in nonrecurring funds for the 2026-2027 5
fiscal year for the expanded Initiative described in subsection (b) of this section. The University 6
of North Carolina System Office shall use these funds to identify and develop programs to 7
accelerate the transfer of course credits among postsecondary institutions of higher education in 8
accordance with this section. 9
SECTION 4.2.(d) Report. – No later than March 15, 2027, The University of North 10
Carolina System Office shall report to the Joint Legislative Education Oversight Committee on 11
the Initiative, including at least the following information: 12
(1) The number and identity of institutions participating in the Initiative. 13
(2) The progress of each participating institution in the following areas, with data 14
disaggregated on the basis of income, race, ethnicity, and other demographic 15
characteristics, where available: 16
a. Enrollments upon transfer. 17
b. Credentials attained as a result of the successful transfer of credits. 18
(3) Recommendations to scale credit mobility and transfer technology statewide, 19
including identification of data system needs and opportunities to further 20
reduce the time it takes for a student to receive a degree and any other student 21
costs. 22
23
PART V. NC CAREERS ENHANCEMENT 24
SECTION 5.(a) Findings. – The General Assembly finds that (i) maintaining a 25
high-quality, up-to-date central platform to disseminate information on career exploration, career 26
planning, and alignment of education to career pathways to meet workforce needs is a statewide 27
priority, (ii) NC Careers provides such a platform, (iii) enhancing NC Careers is essential to the 28
effective implementation of the provisions of G.S. 115C-158.10, and (iv) it is necessary that the 29
State provide funds to the Department of Commerce to enhance NC Careers and its ability to 30
serve as North Carolina's premier workforce information and career navigation resource for 31
students, parents, educators, jobseekers, and career counselors in accordance with this section. 32
SECTION 5.(b) Appropriation. – There is appropriated from the Information 33
Technology Reserve to the Department of Commerce the nonrecurring sum of two hundred 34
thousand dollars ($200,000) and the recurring sum of five hundred eighty -five thousand dollars 35
($585,000), beginning in the 2026 -2027 fiscal year, to contract with Year13, Inc. (Year13), to 36
replatform, host, and maintain the NC Careers website, utilizing the Year13 proprietary system. 37
The contract shall, at a minimum, require Year13 to operationalize its platform to serve as the 38
unified infrastructure for NC Careers, with build -outs prioritizing functionality that supports 39
individualized career planning, integration with programs of study and industry -related 40
credentials, information on licensure requirements as applicable, and use by career counselors, 41
advisors, and coaches embedded throughout a learner's experience across education and 42
workforce systems. 43
44
PART VI. N ORTH CAROLINA COLLAB ORATORY TO EVALUATE AND REPORT 45
ON THE WORKFORCE ACT OF 2026 46
SECTION 6.(a) The North Carolina Collaboratory (Collaboratory) shall evaluate 47
the programs and initiatives established in Parts I through V of this act each academic year 48
through the 2029-2030 academic year. The Collaboratory shall report the results of its evaluation 49
to the Joint Legislative Education Oversight Committee by March 15 of each year through March 50
15, 2030. Each report shall include the following information: 51
General Assembly Of North Carolina Session 2025
House Bill 1163-First Edition Page 5
(1) The total number of students and adult learners engaging with each program 1
or initiative established in this act. 2
(2) The total funds expended to implement, design, and operate each program or 3
initiative. 4
(3) The effects of the programs and initiatives in this act on achieving 5
postsecondary attainment and workforce outcomes. 6
SECTION 6.(b) There is appropriated from the General Fund to the Board of 7
Governors of The University of North Carolina for the 2026 -2027 fiscal year the sum of six 8
hundred thousand dollars ($600,000) in nonrecurring funds to be allocated to the North Carolina 9
Collaboratory to conduct the evaluation and report described in this section. 10
11
PART VII. CAREER DEVELOPMENT PILOT PROGRAM 12
SECTION 7.(a) Pilot Program Established; Purpose. – The Superintendent of Public 13
Instruction shall create an Annual Career Development Plan Pilot Prog ram (Program) for 14
students entering the seventh grade at select schools during the 2026-2027 and 2027-2028 school 15
years and continuing through the students' graduation from high school. The purpose of the 16
Program shall be to evaluate the efficacy of review ing Career Development Plans (Plans) 17
annually to better align students for on -time graduation and achievement of college and career 18
goals and to ensure that all students graduate from high school college or career ready. 19
SECTION 7.(b) Definitions. – The following definitions apply to this section: 20
(1) Career Development Plan. – An individual plan created by each student that 21
establishes the student's plan throughout middle and high school for 22
graduation and career development pursuant to G.S. 115C-158.10. 23
(2) Local board of education. – A local board of education governing a partnered 24
school. 25
(3) Parent. – Defined in G.S. 115C-76.1. 26
(4) Partnered school. – A middle school and high school governed by a local 27
board of education where at least half of the student population of the middle 28
school is assigned to attend the associated high school. 29
SECTION 7.(c) Partnered Schools. – The Superintendent shall select 12 partnered 30
schools that are proportionally representative of the population size and geographic dist ribution 31
of public high schools in the State. The Superintendent shall provide a process for schools to 32
apply to participate in the Program as partnered schools. The Superintendent shall be responsible 33
for the final selection of partnered schools. If there are fewer than 12 applicants, the 34
Superintendent shall collaborate with local superintendents to select schools to be partnered 35
schools. Partnered schools shall have each student entering the seventh grade during the 36
2026-2027 and 2027 -2028 school years c omplete a review of Plans each year until graduating 37
from high school. 38
SECTION 7.(d) Local Board of Education and IEP Support. – The local board of 39
education shall ensure that students in partnered schools are provided assistance by a school 40
counselor and planning time during the instructional day each school year to update their Plans. 41
For students with disabilities, the student's IEP team, if applicable, may assist the student in 42
completing and updating the Plan. Updates to Plans shall be made prior to student scheduling of 43
courses for the next school year. 44
SECTION 7.(e) Parental Involvement. – Partnered schools shall encourage parents 45
to participate in development of Plans with their students and to sign a form provided by the 46
school acknowledging the annual revisions of the Plans. Local boards of education shall ensure 47
that Plans are easily accessible to students and parents and shall provide parents (i) annual written 48
notice of the creation or revision of a Plan, (ii) information on how to access the Plan, (iii) a 49
listing of course offerings for the next school year with a description of the content of each course, 50
and (iv) high school graduation requirements where appropriate. Prior to creating or updating a 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 1163-First Edition
student's Plan, a school counselor shall attempt to meet with the student's parent, either in person 1
or virtually, to explain th e possible effects that the Plan might have on the student's graduation 2
requirements and career development planning. Beginning in the tenth grade and continuing 3
throughout the student's high school enrollment, a school counselor shall provide each student 4
and parent information regarding State and federal need -based and merit -based financial aid 5
programs to support postsecondary education and training using information provided by the 6
State Education Assistance Authority and College Foundation of North Car olina. The school 7
counselor shall also provide information on the Federal Free Application for Federal Student Aid 8
(FAFSA) and its use and notify the parent that information included in the FAFSA is confidential 9
and not accessible by the school. 10
SECTION 7.(f) Initial Career Development Plans. – Students entering seventh grade 11
in partnered schools shall develop an initial Career Development Plan which will provide 12
guidance as students develop Plans. 13
SECTION 7.(g) Annual Career Development Plan Updates. – In partnered schools, 14
Plans shall be updated annually in addition to the following information being provided to 15
students: 16
(1) For eighth grade students, by the end of the school year, a list of the required 17
core courses to be taken in ninth and tenth grade. 18
(2) For tenth grade students, an identification of the graduation requirements 19
relevant to the student's chosen postsecondary goals based on the student's 20
career development planning. 21
(3) For eleventh grade students not meeting the career and college rea diness 22
standards established by the State Board of Community Colleges, a plan for 23
enrolling in remedial coursework for his or her senior year. 24
(4) Any other minimum requirements established by the Superintendent. 25
SECTION 7.(h) Reporting Requirement. – The North Carolina Collaboratory 26
(Collaboratory), in collaboration with the superintendent of a local school administrative unit that 27
has a partnered school participating in the Program, shall develop reporting requirements for 28
partnered schools participating in the Program to provide information on the effectiveness of the 29
annual review of the Plans. The Collaboratory shall report to the Joint Legislative Education 30
Oversight Committee by August 15, 2027, and each year thereafter on the progress of the 31
Program, including any logistical issues that have arisen with the Program. A final report on the 32
Program shall be submitted by August 15, 2033. 33
SECTION 7.(i) This section is effective when it becomes law and applies beginning 34
with the 2026-2027 school year. 35
36
PART VIII. CONSOLIDATE D TEACHER BONUS PROG RAM AND REVISE CTE 37
BONUSES 38
SECTION 8.(a) Article 20 of Chapter 115C of the General Statutes is amended by 39
adding the following new section to read: 40
"§ 115C-302.9. Teacher bonuses. 41
(a) Program. – The State Board of Education shall establish a consolidated teacher bonus 42
program to reward teacher performance and encourage student learning and improvement. To 43
attain this goal, to the extent funds are made available for this purpose, the Department of Public 44
Instruction shall administer bonus pay to qualifying teachers whose salaries are supported from 45
State funds in January of each year, based on data from the prior school year, in accordance with 46
this section. 47
(b) Definitions. – For purposes of this section, the following definitions shall apply: 48
(1) Eligible advanced course teacher. – A teacher of Advanced Placement 49
courses, International Baccalaureate Diploma Programme courses, or the 50
General Assembly Of North Carolina Session 2025
House Bill 1163-First Edition Page 7
Cambridge Advanced International Certificate of Education (AICE) program 1
who meets the following criteria: 2
a. Is employed by, or retired having last held a position at, one or more 3
of the following: 4
1. A qualifying public school unit. 5
2. The North Carolina Virtual Public School program. 6
b. Taught one or more students who received a score listed in subsection 7
(c) of this section. 8
(2) Eligible career and technical education (CTE) teacher. – A teacher who meets 9
the following criteria: 10
a. Is employed by, or retired having last held a position at, a qualifying 11
public school unit. 12
b. Taught one or more students who attained industry certifications or 13
credentials that are approved by the North Carolina Workforce 14
Credentials Advisory Council. 15
(3) Eligible growth teacher. – A teacher who meets at least one of the following 16
criteria: 17
a. Is employed by, or retired having last held a position at, a qualifying 18
public school unit and meets one of the following criteria: 19
1. Is in the top twenty-five percent (25%) of teachers in the State 20
according to the EVAAS student growth index score for third 21
grade reading from the previous school year. 22
2. Is in the top twenty-five percent (25%) of teachers in the State 23
according to the EVAAS student growth index score for fourth 24
or fifth grade reading from the previous school year. 25
3. Is in the top twenty-five percent (25%) of teachers in the State 26
according to the EVAAS student growth index score for fourth, 27
fifth, sixth, seventh, or eighth grade mathematics from the 28
previous school year. 29
b. Is employed by, or retired having last held a position at, a local school 30
administrative unit and meets one of the following criteria: 31
1. Is in the top twenty -five percent (25%) of teachers in the 32
teacher's respective local school administrative unit according 33
to the EVAAS student growth index score for third grade 34
reading from the previous school year. 35
2. Is in the top twenty -five percent (25%) of teachers in the 36
teacher's respective local school administrative unit according 37
to the EVAAS student growth index score for fourth or fifth 38
grade reading from the previous school year. 39
3. Is in the top twenty -five percent (25%) of teachers in the 40
teacher's respective local school administrative unit according 41
to the EVAAS student growth index score for fourth, fifth, 42
sixth, seventh, or eighth grade mathematics from the previ ous 43
school year. 44
c. Was employed by a local school administrative unit that employed in 45
the previous school year three or fewer total teachers in that teacher 's 46
grade level as long as the teacher has an EVAAS student growth index 47
score from the previous sc hool year of exceeded expected growth in 48
one of the following subject areas: 49
1. Third grade reading. 50
2. Fourth or fifth grade reading. 51
General Assembly Of North Carolina Session 2025
Page 8 House Bill 1163-First Edition
3. Fourth, fifth, sixth, seventh, or eighth grade mathematics. 1
(4) EVAAS. – The Education Value-Added Assessment System. 2
(5) Predecessor bonus programs. – All of the following: 3
a. The Advanced Placement/International Baccalaureate/Cambridge 4
AICE Teacher Bonus Program provided in Section 8.8 of S.L. 5
2016-94, as amended by Section 8.8B of S.L. 2017 -57, Section 2.10 6
of S.L. 2017-197, and Section 8.10 of S.L. 2018-5. 7
b. The Industry Certifications and Credentials Teacher Bonus Program 8
provided in Section 8.9 of S.L. 2016-94, as amended by Section 8.8B 9
of S.L. 2017-57, Section 2.10 of S.L. 2017 -197, and Section 8.10 of 10
S.L. 2018-5. 11
c. The Third Grade Read to Achieve Teacher Bonus Program provided 12
in Section 8.8C of S.L. 2017 -57, as amended by Section 2.10 of S.L. 13
2017-197 and Section 8.10 of S.L. 2018-5. 14
d. The Fourth and Fifth Grade Reading Teacher Bonus Program provided 15
in Section 8.8D of S.L. 2017 -57, as amended by Section 8.11 of S.L. 16
2018-5. 17
e. The Fourth to Eighth Grade Math Teacher Bonus Program provided 18
in Section 8.8E of S.L. 2017 -57, as amended by Section 8.12 of S.L. 19
2018-5. 20
f. Advanced course and CTE Teacher bonuses provided in Section 7A.4 21
of S.L. 2021-180. 22
g. Bonuses for Teachers Based on Student Growth provided in Section 23
7A.2 of S.L. 2022-74. 24
h. The Consolidated Teacher Bonus Program provided in Section 7A.3 25
of S.L. 2023-134. 26
(6) Qualifying public school unit. – Any of the following: 27
a. A local school administrative unit. 28
b. A charter school. 29
c. A regional school. 30
d. A school providing elementary or secondary instruction operated by 31
The University of North Carolina under Article 29A of Chapter 116 of 32
the General Statutes. 33
(7) Qualifying teacher. – An eligible teacher who meets one of the following 34
criteria: 35
a. Remains employed teaching in the same qualifying public school unit 36
or, if an eligible advanced course teacher is only employed by the 37
North Carolina Virtual Public School program, remains employed 38
teaching in that program, at least from the school year the data is 39
collected until January 1 of the corresponding school year that the 40
bonus is paid. 41
b. Retired, between the last day of the school year in which the data is 42
collected and January 1 of the corresponding school year in which the 43
bonus is paid, after attaining one of the following: 44
1. The age of at least 65 with five years of creditable service. 45
2. The age of at least 60 with 25 years of creditable service. 46
3. Thirty years of creditable service. 47
(c) Advanced Course Bonuses. – A bonus in the amount of fifty dollars ($50.00) shall be 48
provided to qualifying advanced course teachers for each student taught in each advanced course 49
who receives the following score: 50
General Assembly Of North Carolina Session 2025
House Bill 1163-First Edition Page 9
(1) For Advanced Placement courses, a score of three or higher on the College 1
Board Advanced Placement Examination. 2
(2) For International Baccalaureate Diploma Programme courses, a score of four 3
or higher on the International Baccalaureate course examination. 4
(3) For the Cambridge AICE program, a score of "E" or higher on the Cambridge 5
AICE program examinations. 6
(d) CTE Bonuses. – For qualifying career and technical education teachers, bonuses shall 7
be provided in the following amounts: 8
(1) A bonus in the amount of twenty-five dollars ($25.00) for each student taught 9
by a teacher who provided instruction in a course that led to the attainment of 10
an industry certification or credential with a twenty-five dollar ($25.00) value 11
ranking as determined under subsection (e) of this section. 12
(2) A bonus in the amount of fifty dollars ($50.00) for each student taught by a 13
teacher who provided instruction in a course that led to the attainment of an 14
industry certification or credential with a fifty dollar ($50.00) value ranking 15
as determined under subsection (e) of this section. 16
(e) CTE Course Value Ranking. – The Department of Commerce, in consultation with 17
the North Carolina Workforce Credentials Advisory Cou ncil, shall assign a value ranking for 18
each industry cer tification and credential based on academic rigor and employment value in 19
accordance with this subsection. Fifty percent (50%) of the ranking shall be based on academic 20
rigor and the remaining fifty percent (50%) on employment value. Academic rigor and 21
employment value shall be based on the following elements: 22
(1) Academic rigor shall be based on the number of instructional hours, including 23
work experience or internship hours, required to earn the industry certification 24
or credential, with extra weight give n for coursework that also provides 25
community college credit. 26
(2) Employment value shall be based on the entry wage, growth rate in 27
employment for each occupational category, and average annual openings for 28
the primary occupation linked with the industry certification or credential. 29
(f) Statewide Growth Bonuses. – The Department shall provide bonuses to qualifying 30
teachers who are eligible teachers under sub -subdivision a. of subdivision (3) of subsection (b) 31
of this section, as follows: 32
(1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to 33
eligible teachers under sub -sub-subdivision a.1. of subdivision (3) of 34
subsection (b) of this section. These funds shall be distributed equally among 35
qualifying teachers. 36
(2) A bonus in the am ount of two thousand dollars ($2,000) shall be awarded to 37
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 38
a.2. of subdivision (3) of subsection (b) of this section. 39
(3) A bonus in the amount of two thousand dollars ($2,000) sha ll be awarded to 40
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 41
a.3. of subdivision (3) of subsection (b) of this section. 42
(g) Local Growth Bonuses. – The Department shall provide bonuses to eligible teachers 43
under sub-subdivisions b. and c. of subdivision (3) of subsection (b) of this section, as follows: 44
(1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to 45
eligible EVAAS teachers under sub -sub-subdivisions b.1. and c.1. of 46
subdivision (3) of subsection (b) of this section. These funds shall be divided 47
proportionally based on average daily membership in third grade for each 48
local school administrative unit and then distributed equally among qualifying 49
third grade reading teachers in each local school administrative unit. 50
General Assembly Of North Carolina Session 2025
Page 10 House Bill 1163-First Edition
(2) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 1
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 2
b.2. or c.2. of subdivision (3) of subsection (b) of this section. 3
(3) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 4
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 5
b.3. or c.3. of subdivision (3) of subsection (b) of this section. 6
(h) Limitations and Other Criteria. – The following additional limitations and other 7
criteria shall apply to the program: 8
(1) Bonus funds awarded to a teacher pursuant to subsection (c), subsection (d), 9
subdivision (1) of subsection (f), and subdivision (1) of subsection (g) of this 10
section shall not exceed four thousand dollars ($ 4,000) per subsection or 11
subdivision in any given school year. 12
(2) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.1., 13
b.1., or c.1. of subdivision (3) of subsection (b) of this section may receive a 14
bonus under both subdivision (1) of subsection (f) and subdivision (1) of 15
subsection (g) of this section but shall not receive more than seven thousand 16
dollars ($7,000) pursuant to subdivision (1) of subsection (f) and subdivision 17
(1) of subsection (g) of this section in any given school year. 18
(3) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.2., 19
b.2., or c.2. of subdivision (3) of subsection (b) of this section may receive a 20
bonus under both subdivision (2) of subsec tion (f) and subdivision (2) of 21
subsection (g) of this section but shall not receive more than two bonuses 22
pursuant to subdivision (2) of subsection (f) and subdivision (2) of subsection 23
(g) of this section in any given school year. 24
(4) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.3., 25
b.3., or c.3. of subdivision (3) of subsection (b) of this section may receive a 26
bonus under both subdivision (3) of subsection (f) and subdivision (3) of 27
subsection (g) of this section but shall not receive more than two bonuses 28
pursuant to subdivision (3) of subsection (f) and subdivision (3) of subsection 29
(g) of this section in any given school year. 30
(i) Bonuses Not Compensation. – Bonuses awarded to a teacher pursuant to this section 31
shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to 32
receive. Notwithstanding G.S. 135-1(7a), the bonuses awarded under this section are not 33
compensation under Article 1 of Chapter 135 of the General Statutes, Retire ment System for 34
Teachers and State Employees. 35
(j) Study and Report. – The North Carolina Collaboratory (Collaboratory) shall study the 36
effect of the program on teacher performance and retention. The Collaboratory shall report the 37
results of its findings an d the amount of bonuses awarded to the President Pro Tempore of the 38
Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight 39
Committee, and the Fiscal Research Division by March 15 of each year. The report shall include, 40
at a minimum, the following information: 41
(1) Number of students enrolled and taking examinations in each of the following 42
categories of courses: 43
a. Advanced Placement. 44
b. International Baccalaureate Diploma Programme. 45
c. Cambridge AICE program. 46
d. Courses needed for the attainment of an industry certification or 47
credential. 48
(2) Number of students receiving outcomes on examinations resulting in the 49
award of a bonus for a teacher in each category of courses identified in 50
subdivision (1) of this subsection. 51
General Assembly Of North Carolina Session 2025
House Bill 1163-First Edition Page 11
(3) Number of teachers receiving a bonus in each category of courses identified 1
in subdivision (1) of this subsection. 2
(4) The amounts awarded to teachers for each category of courses identified in 3
subdivision (1) of this subsection. 4
(5) The type of industry certifications and credentials earned by the students, the 5
value ranking for each certification and credential, the number of bonuses 6
earned for each certification or credential, and the total bonus amount awarded 7
for each certification or credential. 8
(6) Average bonus amount awarded to each qualifying teacher who is an eligible 9
teacher under sub -sub-subdivision a.1., b.1., or c.1. of subdivision (3) of 10
subsection (b) of this section. 11
(7) The percentage of teachers who received a bonus pursuant to this section and 12
were eligible to receive a bonus for teaching in the same grade level or course 13
in either or both of the prior two school years pursuant to this section or a 14
predecessor bonus program. 15
(8) The percentage of teachers who received a bonus pursuant to this section and 16
received a bonus for teaching in the same grade level or course in either or 17
both of the prior two school years pursuant to this section or a predecessor 18
bonus program. 19
(9) The statistical relationship between a teacher receiving a bonus pursuant to 20
this section and receiving a bonus for teaching in the same grade level or 21
course in one or more prior school years pursuant to this section or a 22
predecessor bonus program. 23
(10) The distribution of statewide and local growth bonuses aw arded pursuant to 24
this section as among qualifying public school units and, where applicable, 25
schools within those units." 26
SECTION 8.(b) This section becomes effective July 1, 2026, and applies beginning 27
with bonuses awarded in January of 2028 based on data from the 2026-2027 school year. 28
29
PART IX. EFFECTIVE DATE 30
SECTION 9. Except as otherwise provided, this act becomes effective July 1, 2026. 31