Add Home Schools to Opportunity Scholarships.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 866

Short Title: Add Home Schools to Opportunity Scholarships. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 29, 2026
*S866-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PERMIT OPP ORTUNITY SCHOLARSHIP S TO BE AWARDED TO 2
STUDENTS IN HOME SCH OOLS AND TO APPROPRI ATE FUNDS FOR THAT 3
PURPOSE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.(a) G.S. 115C-562.1 reads as rewritten: 6
"§ 115C-562.1. Definitions. 7
The following definitions apply in this Part: 8
(1) Authority. – The State Education Assistance Authority. 9
(2) Division. – The Division of Nonpublic Education, Department of 10
Administration. 11
(3) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 12
(3a) Eligible student. – A student residing in North Carolina who has not yet 13
received a high school diploma and who meets all of the following 14
requirements: 15
a. Is eligible to attend a North Carolina public school pursuant to Article 16
25 of this Chapter. A child who is the age of 4 on or before April 16 is 17
eligible to attend the following school year if the principal, or 18
equivalent, of the school in which the child seeks to enroll finds that 19
the student meets the requirements esta blished by the Authority 20
pursuant to G.S. 115C-562.2(d) and those findings are submitted to the 21
Authority. 22
b. Has not been enrolled in a postsecondary institution as a full -time 23
student taking at least 12 hours of academic credit. 24
c. Has not been placed in a nonpublic school or facility by a public 25
agency at public expense. 26
(3c) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 27
(3d) Home school. – A nonpublic school that meets the requirements of Part 3 of 28
Article 39 of this Chapter as identified by the Division. 29
(4) Local school administrative unit. – A local school administrative unit, charter 30
school, or regional school. 31
(5) Nonpublic school. – A school that meets the requirements of Part 1 or Part 2 32
Part 1, Part 2, or Part 3 of this Article as identified by the Division. 33
(5c) Repealed by Session Laws 2023-134, s. 8A.6(a), effective July 1, 2023. 34
(5d) Private school. – A school that meets the requirements of Part 1 or Part 2 of 35
this Article as identified by the Division. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 866-First Edition
(5e) Reserve. – The Opportunity Scholarship Grant Fund Reserve established 1
under G.S. 115C-562.8. 2
(6) Scholarship grants. – Grants awarded annually by the Authority to eligible 3
students." 4
SECTION 1.(b) G.S. 115C-562.2 reads as rewritten: 5
"§ 115C-562.2. Scholarship grants. 6
(a) The Authority shall make available no later than February 1 annually applications to 7
eligible students for the award of scholarship grants to attend any nonpublic school on a full - or 8
part-time basis. Information about scholarship grants and the ap plication process shall be made 9
available on the Authority's website. Beginning March 15, the Authority shall begin awarding 10
scholarship grants to students who have applied by March 1 in the following order: 11
(1) Eligible students who received a scholarship grant for the school year prior to 12
the school year for which the students are applying. 13
(2) Eligible students qualifying for a scholarship grant in the amount provided 14
under subdivision (1) of subsection (b2) of this section.residing in households 15
with an income level not in excess of the amount required for the student to 16
qualify for the federal free or reduced-price lunch program. 17
(3) Eligible students qualifying for a scholarship grant in the amount provided 18
under subdivision (2) of subsection (b2) of this section.residing in households 19
with an income level between the amount required for the student to qualify 20
for the federal free or reduced -price lunch program and not in excess of two 21
hundred percent (200%) of that amount. 22
(4) Eligible students qualifying for a scholarship grant in the amount provided 23
under subdivision (3) of subsection (b2) of this section.residing in households 24
with an income level of between two hundred percent (200%) of the amount 25
required for the student to qualify for the federal free or reduced-price lunch 26
program and not in excess of four hundred fifty percent (450%) of that 27
amount. 28
(5) All other students. 29
… 30
(b2) Scholarship grants shall be awarded to eligible students as follows: 31
(1) For students enrolled in private schools: 32
(1)a. For students residing in households with an income level not in excess 33
of the amount required for the student to qualify for the federal free or 34
reduced-price lunch program, per year per eligible student, an amount 35
of up to one hundred percent (100%) of the average State per pupil 36
allocation for average daily membership in the prior fiscal year. 37
(2)b. For students residing in households with an income level between the 38
amount required for the student to qualify for the federal free or 39
reduced-price lunch program and not in excess of two hundred percent 40
(200%) of that amount, per year per eligible student, an amount of up 41
to ninety percent (90%) of the average State per pupil allocation for 42
average daily membership in the prior fiscal year. 43
(3)c. For students residing in households with an income level of between 44
two hundred percent (200%) of the amount required for the student to 45
qualify for the federal free or reduced-price lunch program and not in 46
excess of four hundred fifty percent (450%) of that amoun t, per year 47
per eligible student, an amount of up to sixty percent (60%) of the 48
average State per pupil allocation for average daily membership in the 49
prior fiscal year. 50
General Assembly Of North Carolina Session 2025
Senate Bill 866-First Edition Page 3
(4)d. For all students, per year per eligible student, an amount of up to 1
forty-five percent (45%) of the average State per pupil allocation for 2
average daily membership in the prior fiscal year, unless the student 3
qualifies for a higher amount under this subsection. 4
(2) For students enrolled in home schools, per year per eligible student, the sum 5
of one thousand five hundred dollars ($1,500). 6
(b3) Tuition Scholarship grant funds may be used for tuition and fees for a nonpublic 7
school of a private school and required costs of a home school. Tuition and fees of a private 8
school may include tuition and fees for books, transportation, equipment, or other items required 9
by the nonpublic private school. Required costs of a home school include costs for books, 10
equipment, and other required items but do not include tuition, fees, or transportation. 11
(b4) No scholarship grant shall exceed, per year per eligible student, an amount equal to 12
one hundred percent (100%) of the average State per pupil allocation for average daily 13
membership in the prior fiscal year, and year. For students in private school, no scholarship grant 14
shall exceed the required tuition and fees for the nonpublic school the eligible student will attend. 15
…." 16
SECTION 1.(c) G.S. 115C-562.4 reads as rewritten: 17
"§ 115C-562.4. Identification of nonpublic schools and distribution of scholarship grant 18
information. 19
(a) The Division shall provide annually by December 31 to the Authority a list of all 20
nonpublic schools operating in the State that meet both of the requirements of Part 1 or Part 2 of 21
this Article and State and all nonpublic schools operating in the State that meet the requirements 22
of G.S. 115C-562.5(a)(8). The Division shall notify the Authority of any schools included in the 23
list that the Division has determined to be ineligible within five business days of the 24
determination of ineligibility. The Division shall create, in collaboration with the Authority, a 25
unique identifier for each nonpublic school and provide the unique identifiers to the Authority 26
for all nonpublic schools that are registered with the Division. 27
…." 28
SECTION 1.(d) G.S. 115C-562.5 reads as rewritten: 29
"§ 115C -562.5. Obligations of nonpublic schools accepting eligible students receiving 30
scholarship grants. 31
(a) A nonpublic private school that accepts eligible students receiving scholarship grants 32
shall comply with the following: 33
… 34
(4) Administer, at least once in each school year, tests as provided in this 35
subdivision. Test performance data shall be submitted to the Authority by July 36
15 of each year. Test performance data reported to the Author ity under this 37
subdivision is not a public record under Chapter 132 of the General Statutes. 38
Tests shall be administered to all eligible students enrolled in grades three and 39
higher whose tuition and fees are paid in whole or in part with a scholarship 40
grant as follows: 41
a. The nationally standardized test designated by the Authority in grades 42
three and eight. 43
b. The ACT in grade 11. 44
c. A nationally standardized test or other nationally standardized 45
equivalent measurement selected by the chief administrative officer of 46
the nonpublic school private school in all other grades four and higher. 47
For grades four through seven, the nationally standardized test or other 48
equivalent measurement selected must measure achievement in the 49
areas of English grammar, reading, spelling, and mathematics. For 50
grades nine, 10, and 12, the nationally standardized test or other 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 866-First Edition
equivalent measurement selected must measure either (i) achievement 1
in the areas of English grammar, reading, spelling, and mathematics 2
or (ii) competencies in the verbal and quantitative areas. 3
… 4
(b) A nonpublic private school that accepts students receiving scholarship grants shall 5
not require any additional fees based on the status of the student as a scholarship grant recipient. 6
(c) A nonpublic private school enrolling more than 25 students in any grade whose tuition 7
and fees are paid in whole or in part with a scholarship grant shall provide and retain information 8
on student test performance in each grade with more than 25 students, as follows: 9
(1) Report to the Authority on the aggregate standardized t est performance of 10
eligible students in grades three, eight, and 11. Aggregate test performance 11
data reported to the Authority which does not contain personally identifiable 12
student data shall be a public record under Chapter 132 of the General Statutes. 13
Test performance data may be shared with public or private institutions of 14
higher education located in North Carolina and shall be provided to an 15
independent research organization selected by the Authority for research 16
purposes as permitted by the Federal E ducation Rights and Privacy Act, 20 17
U.S.C. § 1232g. 18
(2) Retain standardized test performance data for eligible students in all other 19
grades and annually certify to the Authority compliance with the requirements 20
of subdivision (4) of subsection (a) of this section. 21
(c1) A nonpublic private school shall not discriminate with respect to the categories listed 22
in 42 U.S.C. § 2000d, as that statute read on January 1, 2014. 23
(c2) A home school that accepts students receiving scholarship grants shall comply with 24
the requirements of Part 3 of this Article. 25
(d) If the Authority determines that a nonpublic school is not in compliance with the 26
requirements of this section, the nonpublic school shall be ineligible to receive future scholarship 27
funds. The nonpublic A private school shall notify the parent or guardian of any enrolled student 28
receiving a scholarship grant that the nonpublic private school is no longer eligible to receive 29
future scholarship grants. The Authority shall establish by rule a process for a nonpublic school 30
to appeal for reconsideration of eligibility after one year. To ensure compliance, the Board of 31
Directors of the Authority shall review the criminal history provided under subdivision (2) of 32
subsection (a) of this section to ensure that the person has not been convicted of any crime listed 33
in G.S. 115C-332. The Board shall determine through this review whether the nonpublic private 34
school is noncompliant with this section. The Board shall make written findings with regard to 35
how the criminal history information was used when making the compliance determination. The 36
Board of Directors may delegate any of the duties in this subsection to the Executive Director of 37
the Authority. As part of its review, the Board shall determine whether the resul ts indicate that 38
the staff member has any of the following disqualifying characteristics: 39
(1) Poses a threat to the physical safety of students or personnel. 40
(2) Demonstrates that he or she does not have the integrity or honesty to fulfill his 41
or her duties in overseeing State funds and the requirements of the scholarship 42
grant program. 43
(3) Has not fully satisfied the criminal sentencing obligations imposed following 44
his or her conviction by a court of competent jurisdiction. 45
(e) If a nonpublic school termi nates operation during the school's regular schedule and 46
fails to (i) report the date of the closure to the Division within 14 days and (ii) return funds owed 47
to the Authority in a timely manner for students who received scholarship grants, any other 48
nonpublic school opened during that school year or subsequent school years by an owner or chief 49
administrator owner, chief administrator, or parent listed in the report submitted to the Division 50
under subdivision (8) of subsection (a) of this section for that closed school shall be ineligible to 51
General Assembly Of North Carolina Session 2025
Senate Bill 866-First Edition Page 5
receive scholarship grants until such time the Authority determines the obligation to return those 1
funds has been satisfied." 2
SECTION 1.(e) G.S. 115C-562.6 reads as rewritten: 3
"§ 115C-562.6. Scholarship endorsement. 4
The Authority shall remit, at least two times each school year, scholarship grant funds 5
awarded to eligible students to the nonpublic school school. Scholarship grant funds awarded to 6
eligible students to a private school shall be remitted for endorsement by at least one of the 7
student's parents or guardians. The parent or guardian shall restrictively endorse the scholarship 8
grant funds awarded to the eligible student for deposit into the account of the nonpublic private 9
school to the credit of the eligible student. The parent or guardian shall not designate any entity 10
or individual associated with the nonpublic private school as the parent's attorney -in-fact to 11
endorse the scholarship grant funds. A parent's or guardian's failure to comply with this section 12
shall result in forfeit of the scholarship grant. A scholarship grant forfeited for failure to comply 13
with this section shall be returned to the Authority to be awarded to another student." 14
SECTION 2.(a) There is appropriated from the General Fund to the Opportunity 15
Scholarship Grant Fund Reserve the sum of two hundred fifty million dollars ($250,000,000) in 16
additional recurring funds for the 2026-2027 fiscal year. 17
SECTION 2.(b) G.S. 115C-562.8(b) reads as rewritten: 18
"(b) The General Assembly finds that, due to the critical need in this State to provide 19
opportunity for school choice for North Carolina students, it is imperative that the State provide 20
an increase of funds for 15 years to the Opportunity Scholarship Grant Fund Reserve. Therefore, 21
there is appropriated from the General Fund to the Reserve the following amounts for each fiscal 22
year to be used for the purposes set forth in this section: 23
Fiscal Year Appropriation 24
… 25
2027-2028 $700,000,000$950,000,000 26
2028-2029 $725,000,000$975,000,000 27
2029-2030 $750,000,000$1,000,000,000 28
2030-2031 $775,000,000$1,025,000,000 29
2031-2032 $800,000,000$1,050,000,000 30
For the 2032-2033 fiscal year and each fiscal year thereafter, there is appropriated from the 31
General Fund to the Reserve the sum of eight hundred twenty-five million dollars ($825,000,000) 32
one billion seventy-five million dollars ($1,075,000,000) to be used for the purposes set forth in 33
this section. When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 34
specified in this subsec tion, the Director of the Budget shall include the appropriated amount 35
specified in this subsection for that fiscal year." 36
SECTION 3. This act becomes effective July 1, 2026, and applies to applications 37
for scholarship grants beginning with the 2027-2028 school year. 38