AN ACT to establish the ai academic support grant program and to appropriate funds for that purpose.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  Chapter 115C of the General Statutes is amended by adding a new Article to read:

Article 42.

Academic Support Programs.

§ 115C‑650.  Establish AI Academic Support Program.

(a)        Purpose; Program. – There is established the AI Instructional Support Program (Program) to allow public school units to contract with Khan Academy, Inc. (Khan Academy) for use of the academic support service Khanmigo, in grades six through 12. Khanmigo is an application that uses artificial intelligence to support teachers with lesson plan development and to support students with lesson comprehension.

(b)        Funding. – Funds shall be allocated to each public school unit on the basis of average daily membership (ADM) in grades six through 12 in the public school unit for the purposes set out in this section.

(c)        Funding Use. – Public school units that utilize funds pursuant to this section shall use all funds to contract with Khan Academy for use of the Khanmigo service, any associated professional development, and the rostering programs required pursuant to subsection (e).

(d)       Contract Term. – Public school units entering into contracts with Khan Academy shall contract for a term of one year. At the end of each school year, each public school unit shall evaluate the use of Khanmigo services in the public school unit prior to contracting with Khan Academy for the subsequent school year. The evaluation shall include all of the information required to be reported on by the Department of Public Instruction in subdivisions (2) through (7) of subsection (g) of this section. Public school units shall submit their evaluations to the Department of Public Instruction by July 15 of each year that funds are used pursuant to this section.

(e)        Class Rostering for Khanmigo. – All public school units that contract with Khan Academy pursuant to this section shall use a secure, cloud‑based, single sign‑on and class rostering platform to manage access to digital instructional resources and student information systems and to facilitate automated data integration between educational applications and school district systems. Class rostering products used pursuant to this section must be approved by the Department.

(f)        Juvenile Justice. – The Department shall contract with Khan for 500 Khanmigo licenses for use in schools operated by the Division of Juvenile Justice of the Department of Public Safety. The Department of Public Instruction shall provide technical support to the Division of Juvenile Justice for the use of Khanmigo. The Division of Juvenile Justice shall comply with evaluation requirements pursuant to subsection (d) of this section.

(f)        Study. – The Office of Learning Research at the North Carolina Collaboratory (OLR) shall design and conduct a study to measure the effectiveness of using Khanmigo, including any impact on student performance and growth. As part of the study, the Department of Public Instruction shall aggregate and report to OLR on the evaluations submitted by public school units pursuant to subsection (d) of this section. OLR shall collaborate with Khan Academy to aggregate data on student performance by teacher and by subgroup, to the extent allowed by law. OLR shall provide the results of this study to the Joint Legislative Education Oversight Committee no later than April 1, 2028.

(g)        Report. – No later than February 15 of each year in which funds are made available for the Program, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee at least the following information:

(1)        The number public school units that contracted with Khan Academy pursuant to this article.

(2)        The number of students using the Khanmigo application.

(3)        The average number of minutes and interactions students had with the Khanmigo application weekly.

(4)        The number of teachers using the application.

(5)        The average number of minutes and interactions teachers had with the Khanmigo application weekly.

(6)        Any identified impact on student outcomes.

(7)        Any identified impact on teacher performance.

(8)        The number of moderation flags generated by the application.

SECTION 2.  It is the intent of the General Assembly to appropriate from the General Fund to the Department of Public Instruction the sum of ten million sixty thousand five hundred sixty dollars ($10,060,560) in recurring funds for the 2025‑2026 fiscal year to allocate funds pursuant to G.S. 115C‑650, as established by this act.

SECTION 3.  This act is effective when the Current Operations Appropriations Act of 2025 becomes law and if that bill appropriates funds for the purposes detailed in this act in the amounts set out in Section 2 of this act.