Child. of Wartime Vets Sch'ship Funds & Flex.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 816

Short Title: Child. of Wartime Vets Sch'ship Funds & Flex. (Public)
Sponsors: Senators Brinson, McInnis, and Ford (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 22, 2026
*S816-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO APPROPRIAT E FUNDS FOR THE CHIL DREN OF WARTIME VETE RANS 2
SCHOLARSHIP PROGRAM AND TO EXPAND FLEXIB ILITY PROVIDED FOR T HE 3
CHILDREN OF WARTIME VETERANS SCHOLARSHIP FUNDS PROGRAM TO 4
INCLUDE THE 2026-2027 ACADEMIC YEAR. 5
The General Assembly of North Carolina enacts: 6
7
PART I. FUNDS FOR RECIPIENTS OF THE CHILDREN OF WARTIME VETERANS 8
SCHOLARSHIP IN THE 2025-2026 ACADEMIC YEAR 9
SECTION 1. There is appropriated from the General Fund to the Board of Governors 10
of The University of North Carolina for the 2025-2026 fiscal year the sum of one million dollars 11
($1,000,000) in nonrecurring funds to be allocated to the State Education Assistance Au thority 12
(Authority) to increase award amounts for recipients of scholarships for the children of wartime 13
veterans for the 2025-2026 academic year up to the full amounts permitted under Part 2 of Article 14
14 of Chapter 143B of the General Statutes to the ext ent those award amounts were reduced by 15
the Secretary of the Department of Military and Veterans Affairs pursuant to the award flexibility 16
provided in Part VI of S.L. 2025-72. If any of these funds remain after increasing award amounts 17
for scholarship recipients in accordance with this section, the Authority may use the remaining 18
funds to award additional scholarships for qualifying children of wartime veterans under Part 2 19
of Article 14 of Chapter 143B of the General Statutes, beginning in the 2026 -2027 academic 20
year. 21
22
PART II. FUNDS FOR ADDITIONAL AWARDS FOR THE CHILDREN OF WARTIME 23
VETERANS SCHOLARSHIP IN THE 2026-2027 ACADEMIC YEAR 24
SECTION 2.(a) Notwithstanding G.S. 143B-1226, for new applications for 25
scholarships for children of wartime veterans under P art 2 of Article 14 of Chapter 143B of the 26
General Statutes, the Secretary of the Department of Military and Veterans Affairs may increase 27
the number of Class II and Class III scholarships awarded in the 2026-2027 academic year from 28
100 to 200 children in each class. 29
SECTION 2.(b) There is appropriated from the Escheat Fund to the Board of 30
Governors of The University of North Carolina the sum of ten million dollars ($10,000,000) in 31
recurring funds beginning in the 2026 -2027 fiscal year to be allocated to t he State Education 32
Assistance Authority to support additional scholarships for qualifying children of wartime 33
veterans under Part 2 of Article 14 of Chapter 143B of the General Statutes in accordance with 34
subsection (a) of this section. 35
SECTION 2.(c) This section becomes effective July 1, 2026. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 816-First Edition
1
PART III. EXPAND EXISTING FLEXIBILITY FOR THE CHILDREN OF WA RTIME 2
VETERANS SCHOLARSHIP FUNDS PROGRAM TO IN CLUDE THE 2026 -2027 3
ACADEMIC YEAR 4
SECTION 3. Section 6 of S.L. 2025-72 reads as rewritten: 5
"SECTION 6.(a) For purposes of subsection (b) of this section, the following definitions 6
shall apply: 7
(1) Authority. – The State Education Assistance Authority. 8
(2) Commission. – The Veterans' Affairs Commission of the Department. 9
(3) Department. – The Department of Military and Veterans Affairs. 10
(4) Program. – The program administered by the Department to award scholarship 11
funds that is referred to as Scholarships for Children of Wartime Veterans. 12
(5) Scholarship funds. – Scholarship funds awarded to the child of a North 13
Carolina veteran under Part 2 of Article 14 of Chapter 143B of the General 14
Statutes. 15
(6) Secretary. – The Secretary of the Department of Military and Veterans Affairs. 16
"SECTION 6.(b) Notwithstanding Part 2 of Article 14 of Chapter 143B of the General 17
Statutes and any rules adopted or determinations made by the Veterans Affairs Commission, for 18
the 2024-2025 academic year and the 2025 -2026 academic year, 2024-2025, 2025-2026, and 19
2026-2027 academic years, the following shall apply relating to the administration of scholarship 20
funds under the Program: 21
(1) Within funds available for the Program, the following shall be determined: 22
a. Due to the sacrifice of veterans for the State of North Carolina and the 23
unique needs and challenges of the children of wartime v eterans to 24
ensure they have the greatest opportunities to reach their higher 25
education attainment goals, if there are additional eligible recipients, 26
other than those identified by the Department under this Program, who 27
are attending public colleges and un iversities of the State who may 28
qualify to have their scholarships funded with monies from the Escheat 29
Fund, the Authority, after consultation with the Secretary, may fund 30
those scholarships with monies from the Escheat Fund. 31
b. For the 2025-2026 and 2026-2027 academic years, the following shall 32
occur: 33
1. After consultation with the Authority, the Secretary shall 34
determine whether to prioritize the award of new applicants for 35
the 2025-2026 academic year as follows: 36
I. in In Class I -A, I -B, and IV scholarships, prior to 37
awarding Class II and III scholarships. Class II and 38
Class III awards may be determined following awards 39
for Class I-A, I-B, and IV depending on the availability 40
of funds for the Program. 41
II. For the 2026-2027 academic year only, in scholarships 42
for new applicants who meet the following 43
requirements: 44
A. Apply to receive scholarships as undergraduate 45
students. 46
B. Qualify as residents for tuition purposes under 47
the criteria set forth in G.S. 116-143.1 and in 48
accordance with the coordinated and 49
centralized residency determination process 50
administered by the Authority. 51
General Assembly Of North Carolina Session 2025
Senate Bill 816-First Edition Page 3
C. Are otherwise eligible to receive scholarships in 1
accordance with the Program requirements. 2
c.2. The Secretary, after consulting with the Authority, may 3
determine the following based on the number of eligible 4
students, including new and renewal students, that have 5
applied for the 2025-2026 academic year, students: 6
I. For the 2025 -2026 academic year, whether to reduce 7
the room and board allowance award for students 8
attending a public institution and the maximum 9
allowance award for students attending private 10
institutions, prior to August 15, 2025. 11
II. For the 2026-2027 academic year, whether to establish 12
a standardized payment schedule or formula within 13
available fund s for the academic year to ensure the 14
efficient and effective administration of the 15
scholarships. 16
d.3. After the actions set forth in sub -subdivisions a., b., and c. of 17
this subdivision have been taken, for awards for the 2025-2026 18
academic year, After the preceding actions have been taken, if 19
funds available for the Program are still insufficient to provide 20
scholarships to all eligible students, the Authority may adjust 21
and standardize award amounts as necessary, including 22
establishing a lottery and providing pro rata scholarship awards 23
for room and board, or both, for the applicable academic year, 24
to ensure the efficient administration of the scholarship funds. 25
(2) All scholarship notifications shall include language that the award of the 26
scholarship is contingent upon the availability of funds. 27
(3) The Authority shall disburse scholarship funds in accordance with 28
G.S. 116-204(11a). 29
(4) From the total amount of funding appropriated to the Board of Governors of 30
The University of North Carolina and allocated to the Authority in a fiscal 31
year to support the award of scholarship funds under the Program, the 32
Authority may use an amount of up to two and one -half percent (2.5%) for 33
administration costs related to the Program from the allocation from the 34
General Fund. The Authority shall place any unexpended and unencumbered 35
appropriated funds remaining at the end of the 2024-2025 and 2025 -2026 36
fiscal years 2024-2025, 2025 -2026, and 2026 -2027 fiscal years into an 37
institutional trust fund established in accordance wit h the provisions of 38
G.S. 116-36.1. Those funds may be used for the purpose of awarding 39
scholarships under the Program and for administration costs of the Authority 40
related to the Program. 41
"SECTION 6.(c) This section becomes effective June 30, 2025, and applies to awards 42
granted for the 2024-2025 and 2025 -2026 academic years. 2024-2025, 2025 -2026, and 43
2026-2027 academic years." 44
45
PART IV. EFFECTIVE DATE 46
SECTION 4. Except as otherwise provided, this act is effective when it becomes 47
law. 48