CARDINAL Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 842

Short Title: CARDINAL Act. (Public)
Sponsors: Senators Chaudhuri and Bradley (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 28, 2026
*S842-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH THE SUPPLEMENTAL STA TE FUNDS FOR TRUMP 2
ACCOUNTS PROGRAM AND TO REVISE THE OPPOR TUNITY SCHOLARSHIP 3
AWARD PRIORITY FOR THE 2026-2027 SCHOOL YEAR. 4
The General Assembly of North Carolina enacts: 5
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PART I. TITLE OF ACT 7
SECTION 1. This act shall be known and may be cited as the "Creating Accounts 8
for Residents to Develop Investment and Navigate Adulthood Later Act" or the "CARDINAL 9
Act." 10
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PART II. SUPPLEMENTAL STATE FUNDS FOR TRUMP ACCOUNTS PROGRAM 12
SECTION 2.(a) Definitions. – The following definitions shall apply in this section: 13
(1) Authority. – The State Education Assistance Authority. 14
(2) Eligible child. – A person who meets all of the following criteria: 15
a. Is an eligible child, as defined in 26 U.S.C. § 6434, as that statute read 16
on July 4, 2025. 17
b. Was born in North Carolina after December 31, 2024, and before 18
January 1, 2029. 19
c. Resides in a household with an income level not in excess of three 20
hundred percent (300%) of the federal poverty guidelines. 21
(3) Federal Pilot Program. – The federal Trump Accounts Contribution Pilot 22
Program established in 26 U.S.C. § 6434. 23
(4) Program. – The Supplemental State Funds for Trump Accounts Program 24
established pursuant to subsection (b) of this section. 25
(5) Trump Account. – A Trump Account, as defined in 26 U.S.C. § 530A. 26
(6) Trust Fund. – The Supplemental State Funds for Trump Accounts Trust Fund 27
established pursuant to subsection (c) of this section. 28
SECTION 2.(b) Program. – The State Education Assistance Authority (Authority) 29
shall establish the Supplemental State Funds for Trump Accounts Program to contribute the sum 30
of one thousand dollars ($1,000) to every eligible child who is or becomes the beneficiary of a 31
Trump Account that receives a contribution of funds from the Secr etary of the Treasury of the 32
United States pursuant to the federal Pilot Program. Prior to depositing State funds into a Trump 33
Account, the Authority shall coordinate with the Department of Health and Human Services to 34
verify that the beneficiary of the ac count was born in North Carolina after December 31, 2024, 35
and before January 1, 2029. 36
General Assembly Of North Carolina Session 2025
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SECTION 2.(c) Trust Fund. – There is established the Supplemental State Funds for 1
Trump Accounts Trust Fund as an institutional trust fund pursuant to G.S. 116-36.1. All funds 2
appropriated to, or otherwise received by, the Program for the award of funds pursuant to this 3
section and all interest earned on these funds shall be placed in the Trust Fund. The monies in 4
the Trust Fund may be used only for the purposes set forth in this section, administrative costs, 5
and costs associated with Program operations in accordance with this section. The Authority may 6
use up to four percent (4%) of the funds available in the Trust Fund each fiscal year that State 7
funds are provided to a Trump Account to administer the Program in accordance with this section. 8
SECTION 2.(d) Administration. – The following shall apply regarding the 9
administration of the Program: 10
(1) The Authority may adopt rules to implement the Program. 11
(2) The Authority may coordinate with the Secretary of the Treasury of the United 12
States, as necessary, to ensure that State funds are deposited in the correct 13
Trump Account of each eligible child. 14
SECTION 2.(e) Trump Accounts are IRA Accounts. – Notwithstanding 15
G.S. 105-228.90, for purposes of this section, a Trump Account shall be treated as an individual 16
retirement account in accordance with the Internal Revenue Code as enacted as of July 4, 2025, 17
including any provisions enacted as of that date that become effective eit her before or after that 18
date. 19
SECTION 2.(f) Report. – No later than July 15, 2027, and each year thereafter while 20
State funds are deposited into the Trump Account of an eligible child, the Authority shall report 21
to the Joint Legislative Education Oversight Committee on the following information: 22
(1) The number of eligible children receiving contributions pursuant to the 23
Program. 24
(2) The amount of funds in the Trust Fund. 25
(3) Any additional funds needed to ensure all eligible children receive a 26
contribution of one thousand dollars ($1,000) in State funds under the 27
Program. 28
SECTION 2.(g) Funds. – Notwithstanding G.S. 115C-562.8 and any other provision 29
of law to the contrary, the State Education Assistance Authority shall transfer to the Supplemental 30
State Funds for Trump Accounts Trust Fund for the award of funds pursuant to the Program the 31
sum of one hundred ninety -two million dollars ($192,000,000) in nonrecurring funds that were 32
appropriated to the Opportunity Scholarship Grant Fund Reserve for the 2025-2026 fiscal year 33
to be used for the award of scholarships in the 2026-2027 fiscal year. 34
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PART III. REVISE OPP ORTUNITY SCHOLARSHIP AWARD PRIORITY FOR THE 36
2026-2027 SCHOOL YEAR 37
SECTION 3. Notwithstanding G.S. 115C-562.2, to the extent there are in sufficient 38
funds in the 2026-2027 fiscal year to award opportunity scholarship grants to all eligible students 39
applying to receive a scholarship grant in the 2026 -2027 school year, the State Education 40
Assistance Authority shall begin awarding scholarship g rants to students who have applied by 41
March 1, 2026, in the following order: 42
(1) Eligible students who meet all of the following criteria: 43
a. Received a scholarship grant in the 2025-2026 school year. 44
b. Qualify for a scholarship grant in the amount provid ed under 45
subdivision (1), (2), or (3) of subsection (b2) of G.S. 115C-562.2. 46
(2) Eligible students qualifying for a scholarship grant in the amount provided 47
under subdivision (1) of subsection (b2) of G.S. 115C-562.2. 48
(3) Eligible students qualifying for a scholarship grant in the amount provided 49
under subdivision (2) of subsection (b2) of G.S. 115C-562.2. 50
General Assembly Of North Carolina Session 2025
Senate Bill 842-First Edition Page 3
(4) Eligible students qualifying for a scholarship grant in the amount provided 1
under subdivision (3) of subsection (b2) of G.S. 115C-562.2. 2
(5) Eligible students who meet all of the following criteria: 3
a. Received a scholarship grant in the 2025-2026 school year. 4
b. Qualify for a scholarship grant in the amount provided under 5
subdivision (4) of subsection (b2) of G.S. 115C-562.2. 6
(6) All other students. 7
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PART IV. EFFECTIVE DATE 9
SECTION 4. This act becomes effective July 1, 2026. 10