AN ACT to modify the children with disabilities funding formula.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 115C‑111.05 reads as rewritten:

§ 115C‑111.05.  Funding for children with disabilities.

To the extent funds are made available for this purpose, the State Board shall allocate funds for children with disabilities to each local school administrative unit public school unit, except those operating under Article 9C of this Chapter, on a per child basis. Each local school administrative unit public school unit receiving funds pursuant to this section shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) thirteen percent (13%) of its the sum of the allocated average daily membership in the public school units co‑located within the boundaries of a local school administrative unit for the current school year.year, plus the number of students that received scholarship grants pursuant to Part 2A of Article 39 of this Chapter for the most recent school year that data is available and reside within the boundaries of the local school administrative unit.

SECTION 1.(b)  The State Education Assistance Authority shall provide to the Department of Public Instruction by March 15 of each year the number of students that received scholarship grants pursuant to Part 2A of Article 39 of Chapter 115C of the General Statutes that resided within the boundaries of each local school administrative unit during the most recent school year.

SECTION 2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of twenty‑five million dollars ($25,000,000) in recurring funds for the 2025‑2026 fiscal year to be allocated to public school units for children with disabilities funding.

SECTION 3.  This act becomes effective July 1, 2025, and applies beginning with the funding allocations for the 2025‑2026 fiscal year.