AN ACT to make changes to provisions of law RELATED to the compensation of educators, to restore certain retiree medical benefits, and to expand the teaching fellows program.

The General Assembly of North Carolina enacts:

part i. reinstate education‑based salary supplements for TEACHERS AND INSTRUCTIONAL SUPPORT PERSONNEL

SECTION 1.(a)  G.S. 115C‑302.10 is repealed.

SECTION 1.(b)  Notwithstanding any other provision of law, for the 2026‑2027 fiscal year, State Board of Education policy TCP‑A‑006, as it was in effect on June 30, 2013, shall be used to determine (i) whether teachers and instructional support personnel are paid on the M salary schedule and (ii) whether they receive a salary supplement for academic preparation at the six‑year or doctoral degree level.

SECTION 1.(c)  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight million dollars ($8,000,000) in recurring funds beginning in the 2026‑2027 fiscal year to reinstate education‑based salary supplements for teachers and instructional support personnel in accordance with this act.

SECTION 1.(d)  This section becomes effective July 1, 2026.

part ii. restore longevity payments for educators

SECTION 2.(a)  Section 9.1(d) of S.L. 2014‑100 is repealed.

SECTION 2.(b)  For the 2026‑2027 fiscal year, annual longevity payments for teachers and instructional support personnel shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once per year.

SECTION 2.(c)  For the 2026‑2027 fiscal year, longevity payments for principals and assistant principals shall be as provided for State employees under the North Carolina Human Resources Act.

SECTION 2.(d)  There is appropriated from the General Fund to the Department of Public Instruction beginning in the 2026‑2027 fiscal year the sum of one hundred forty million three hundred thousand dollars ($140,300,000) in recurring funds to restore longevity payments for educators pursuant to this act.

SECTION 2.(e)  This section becomes effective July 1, 2026.

part iii. PREVENT THE ELIMINATION OF RETIREE MEDICAL BENEFITS FOR MEMBERS FIRST EARNING SERVICE ON OR AFTER JANUARY 1, 2021, UNDER THE north carolina TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, OR THE OPTIONAL RETIREMENT PROGRAMS

SECTION 3.1.(a)  Subsections (c) and (d) of Section 35.21 of S.L. 2017‑57 are repealed.

SECTION 3.1.(b)  This section is effective retroactively to December 31, 2020.

SECTION 3.2.(a)  There is appropriated from the General Fund to the Department of State Treasurer the sum of two million dollars ($2,000,000) in recurring funds for the 2026‑2027 fiscal year to be used to address the increased cost to the North Carolina State Health Plan for Teachers and State Employees as a result of the continuation of retiree medical benefits under this act.

SECTION 3.2.(b)  Subsection (a) of this section becomes effective July 1, 2026.

part iv. expand nc teaching fellows program

SECTION 4.(a)  G.S. 116‑209.62 reads as rewritten:

§ 116‑209.62.  North Carolina Teaching Fellows Program established; administration.

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(f)        Program Selection Criteria. – The Authority shall administer the Program in cooperation with up to 10 11 institutions of higher education with approved educator preparation programs selected by the Commission that represent a diverse selection of both postsecondary constituent institutions o The University of North Carolina and private postsecondary institutions operating in the State. At a minimum, the Commission shall select North Carolina Agricultural and Technical State University, a designated historically black college and university (HBCU), to participate in the Program. The Commission shall adopt stringent standards for selection of the other institutions for the most effective educator preparation programs, including the following:

(1)        Demonstrates high rates of educator effectiveness on value‑added models and teacher evaluations, including using performance‑based, subject‑specific assessment and support systems, such as edTPA or other metrics of evaluating candidate effectiveness that have predictive validity.

(2)        Demonstrates measurable impact of prior graduates on student learning, including impact of graduates teaching in qualifying licensure areas.

(3)        Demonstrates high rates of graduates passing exams required for teacher licensure.

(4)        Provides curricular and co‑curricular enhancements in leadership, facilitates learning for diverse learners, and promotes community engagement, classroom management, and reflection and assessment.

(5)        Requires at least a minor concentration of study in the subject area that the candidate may teach.

(6)        Provides early and frequent internship or practical experiences, including the opportunity for participants to perform practicums in diverse school environments.

(7)        Is approved by the State Board of Education as an educator preparation program.

(8)        For an educator preparation program enrolling loan recipients in a program of study leading to licensure in elementary education (K‑6), provides training that is aligned with the Science of Reading in accordance with G.S. 115C‑269.20. The Commission shall contract with a third‑party entity to biennially evaluate whether a program identified in this subdivision is providing training that is aligned with the Science of Reading.

(g)        Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected students to be used at up to 10 selected the participating institutions for completion of a program leading to initial teacher licensure as follows:

(1)        North Carolina high school seniors. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to eight semesters.

(2)        Students applying for transfer to a selected educator preparation program at an institution of higher education. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to six semesters.

(3)        Individuals currently holding a bachelor's degree seeking preparation for teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to four semesters.

(4)        Students matriculating at institutions of higher education who are changing to an approved program of study at a selected educator preparation program. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to four semesters.

Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to obtaining licensure.

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SECTION 4.(b)  This section becomes effective July 1, 2026, and applies beginning with the 2026‑2027 academic year.

part v. effective date

SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.