Workforce Act of 2026.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 986

Short Title: Workforce Act of 2026. (Public)
Sponsors: Senators Settle, Hise, and Corbin (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S986-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
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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
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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 mo del 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 number 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
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PART III. NC WORKFORCE CREDENTIALS 30
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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
leading to industry-valued credentials, and aligning industry-valued credentials and programs of 35
study leading to those credentials with federal Workforce Pell Grant implementation, it is 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 986-First Edition
necessary that the State provide funds to the Department of Commerce (Department) to develop 1
and maintain a list of industry-valued credentials, to continually determine programs of study to 2
meet workforce needs, and to ensure alignment to federal Workforce Pell Grants. 3
SECTION 3.1.(b) Appropriation. – There is appropriated from the General Fund to 4
the Department the sum of three hundred fifty thousand dollars ($350,000) in recurring funds, 5
beginning with the 2026 -2027 fiscal year, for operational expenses and staffing to support NC 6
Workforce Credentials in accordance with this section and G.S. 143B-438.10. 7
SECTION 3.1.(c) Data Coordination. – The Department shall engage with 8
employers to provide workforce data and participate in efforts to link data on industry -valued 9
credentials to labor market outcomes, including: 10
(1) Labor market demand. 11
(2) Job placement and Standard Occupational Classification or similar data 12
reflecting employment-in-field. 13
(3) Wage outcomes. 14
(4) Stackability-capacity for credentials to count toward and build into more 15
advanced career credentials. 16
(5) Work location, collected on a voluntary basis and in a manner consistent with 17
applicable State and federal privacy protections, to support aggregated 18
analysis of regional workforce outcomes, talent retention, and analysis of 19
education and career pathways alignment with local labor market demand. 20
SECTION 3.1.(d) Stakeholder Consultation. – As part of its efforts to link data on 21
industry-valued credentials to labor market outcomes, the Department shall consult with the 22
North Carolina Community Colleges System Office, The University of North Carolina System 23
Office, and other relevant stakeholders to ensure alignment with rules and regulations pertaining 24
to federal Workforce Pell Grants and to take steps to institutionalize workfo rce data sharing 25
across State government. 26
SECTION 3.1.(e) Longitudinal Data. – As part of its efforts to link data on 27
industry-valued credentials to labor market outcomes, the Department shall encourage issuers of 28
those credentials to submit data pertaining to credentials issued to the North Carolina 29
Longitudinal Data System for inclusion in the System's Licenses and Credentials Data 30
Warehouse to enhance the State's ability to retrieve and link those data to labor market outcomes. 31
SECTION 3.1.(f) Wage-Outcome Prioritization. – In developing and maintaining 32
the list of industry -valued credentials, the Department shall give substantial weight to 33
demonstrated wage outcomes and evidence that credential attainment provides a positive return 34
on investment for students. 35
SECTION 3.1.(g) Outreach. – Of the funds appropriated to the Department under 36
subsection (b) of this section, the Department may use up to fifty thousand dollars ($50,000) each 37
fiscal year for outreach and communications consistent with th e purposes of this section, 38
including to contract with non-State entities for outreach and communications. 39
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ADDITIONAL FUNDS FOR SHORT -TERM WORKFORCE DEVELOPMENT 41
GRANTS 42
SECTION 3.2.(a) Findings. – The General Assembly finds that, due to the critical 43
need in this State to provide financial aid for students pursuing industry -valued credentials, 44
including in programs of study that are not eligible for federal Workforce Pell Grants, it is in the 45
State's interest to provide an increase of funds to the North Car olina Community College 46
Short-Term Workforce Development Grant Program. 47
SECTION 3.2.(b) G.S. 115D-10.19 is amended by adding a new subsection to read: 48
"(e) Administrative Costs. – The North Carolina Community Colleges System Office may 49
use up to four perc ent (4%) of the funds appropriated for the Program for administrative costs 50
associated with administration of the Program." 51
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Senate Bill 986-First Edition Page 3
SECTION 3.2.(c) Appropriation. – There is appropriated from the General Fund to 1
the Community Colleges System Office the sum of one million dollars ($1,000,000) in recurring 2
funds beginning with the 2026 -2027 fiscal year for the Short -Term Workforce Development 3
Grant Program. 4
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PART IV. SEAMLESS POSTSECONDARY TRANSFER 6
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INCLUDE NORTH CAROLINA INDEPENDENT COLLEGES AND UNIVERSITIES IN 8
COMMON DIGITAL TRANSCRIPT 9
SECTION 4.1. The State Education Assistance Authority, in consultation with the 10
Department of Public Instruction, t he Community Colleges System Office, The University of 11
North Carolina System Office, the North Carolina Independent Colleges and Universities, and 12
the College Foundation, Inc., shall incorporate the private colleges and universities located in 13
this State i nto the common digital transcript developed pursuant to Section 8A.15 of S.L. 14
2023-134. No later than March 15, 2027, the Authority shall report to the Joint Legislative 15
Education Oversight Committee on the progress made toward this goal, including at leas t the 16
following information: 17
(1) Any additional steps to be taken for this purpose and a time line for completing 18
those steps and publishing the transcript to students enrolled at private 19
colleges and universities in this State. 20
(2) Estimates of any additi onal costs needed to expand the common digital 21
transcript to private colleges and universities. 22
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EXPANSION OF POSTSECONDARY TRANSFER TECHNOLOGY 24
SECTION 4.2.(a) Findings. – The General Assembly makes the following findings 25
regarding the current state of po stsecondary transfer technology at institutions of higher 26
education in North Carolina: 27
(1) Seamless postsecondary transfer and reverse transfer reduces barriers for 28
learners and aligns to statewide economic and workforce goals. 29
(2) The Current Operations A ppropriations Act of 2023, S.L. 2023 -134, 30
authorized and supported statewide postsecondary data and technology 31
initiatives to improve student outcomes, including transfer efficiency. 32
(3) Expanding technology to support the transfer of student credits among and 33
between institutions of higher education will reduce the time it takes for 34
students to earn a degree and reduce costs. 35
(4) Successful postsecondary transfer and reverse transfer is necessary to achieve 36
the postsecondary attainment goal established in G.S. 116C-10. 37
(5) Additional investment is necessary to scale and integrate technology 38
supporting seamless postsecondary transfer and reverse transfer. 39
SECTION 4.2.(b) Initiative; Administration. – For the 2026 -2027 academic year, 40
The University of North Carolina System Office, in collaboration with the Community Colleges 41
System Office, shall expand the current initiative (Initiative) to accelerate the transfer of course 42
credits among postsecondary institutions of higher education using postsecondary trans fer 43
technology. This expanded Initiative shall provide and improve technology at participating 44
institutions of higher education that will simplify the credit transfer process for students, advisors, 45
and the participating institutions. The expanded Initiative shall allow students to easily compare 46
credit transfer options, speed up student decision making, and streamline transfer planning and 47
progress toward degrees in a manner that reduces overall costs for students in the State. 48
SECTION 4.2.(c) Appropriation. – There is appropriated from the General Fund to 49
the Board of Governors of The University of North Carolina the sum of two million five hundred 50
thousand dollars ($2,500,000) in nonrecurring funds for the 2026 -2027 fiscal year for the 51
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expanded Initiative described in subsection (a) of this section. The University of North Carolina 1
System Office shall use these funds to identify and develop programs to accelerate the transfer 2
of course credits among postsecondary institutions of higher education in accord ance with this 3
section. 4
SECTION 4.2.(d) Report. – No later than March 15, 2027, The University of North 5
Carolina System Office shall report to the Joint Legislative Education Oversight Committee on 6
the Initiative, including at least the following information: 7
(1) The number and identity of institutions participating in the Initiative. 8
(2) The progress of each participating institution in the following areas, with data 9
disaggregated on the basis of income, race, ethnicity, and other demographic 10
characteristics, where available: 11
a. Enrollments upon transfer. 12
b. Credentials attained as a result of the successful transfer of credits. 13
(3) Recommendations to scale credit mobility and transfer technology statewide, 14
including identification of data system needs and opportunities to further 15
reduce the time it takes for a student to receive a degree and any other student 16
costs. 17
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PART V. NC CAREERS ENHANCEMENT 19
SECTION 5.(a) Findings. – The General Assembly finds that (i) maintaining a 20
high-quality, up-to-date central platform to disseminate information on career exploration, career 21
planning, and alignment of education to career pathways to meet workforce needs is a statewide 22
priority, (ii) NC Careers provides such a platform, (iii) enhancing NC Careers is essential to the 23
effective implementation of the provisions of G.S. 115C-158.10, and (iv) it is necessary that the 24
State provide funds to the Department of Commerce to enhance NC Careers and its ability to 25
serve as North Carolina's premier workforce information and career navigation resource for 26
students, parents, educators, jobseekers, and career counselors. 27
SECTION 5.(b) Appropriation. – There is appropriated from the Information 28
Technology Reserve to the Department of Commerce the sum of one million five hundred 29
thousand dollars ($1,500,000) in nonrecurring funds for the 2026-2027 fiscal year to enhance NC 30
Careers in accordance with this subsection. Enhancements shall prioritize functionality that 31
supports individualized career planning, integration with programs of study and industry-related 32
credentials, information on licensure requirements as applicable, and use by career counselors, 33
advisors, and coaches embedded throughout a learner's experience across education and 34
workforce systems. 35
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PART VI. NORTH CAROL INA COLLABORATORY TO EVALUATE AND REPORT 37
ON THE WORKFORCE ACT OF 2026 38
SECTION 6.(a) The North Carolina Collaboratory (Collaboratory) shall evaluate 39
the programs and initiatives established in Parts I through V of this act each academic year 40
through the 2029-2030 academic year. The Collaboratory shall report the results of its evaluation 41
to the Joint Legislative Education Oversight Committee by March 15 of each year through March 42
15, 2030. Each report shall include the following information: 43
(1) The total number of students and adult learners engaging with each program 44
or initiative established in this act. 45
(2) The total funds expended to implement, design, and operate each program or 46
initiative. 47
(3) The effects of the programs and initiatives in this act on achieving 48
postsecondary attainment and workforce outcomes. 49
SECTION 6.(b) There is appropriated from the General Fund to the Board of 50
Governors of The University of North Carolina for the 2026 -2027 fiscal year the sum of six 51
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hundred thousand dollars ($600,000) in nonrecurring funds to be allocated to the North Carolina 1
Collaboratory to conduct the evaluation and report described in this section. 2
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PART VII. EFFECTIVE DATE 4
SECTION 7. Except as otherwise provided, this act becomes effective July 1, 2026. 5