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SB 842

CARDINAL Act.

2025-2026 Session Introduced by Woodson Bradley and 4 co-sponsors

The CARDINAL Act creates a state-funded Trump Accounts Program providing $1,000 per eligible NC child born 2025–2028 with household income ≤300% FPL, funded via a new Trust Fund.

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WeVote Research Nonpartisan
Bill Summary · SB 842

Summary of North Carolina Senate Bill 842 (2025 Session) – CARDINAL Act

Note: This summary explains the bill’s main purpose, key provisions, who is affected, and timeline details. It reflects the text as filed on Apr 27, 2026.

1) Purpose and overall intent

  • The bill establishes two main policy objectives:
    1) Create a new program called the Supplemental State Funds for Trump Accounts Program (referred to as the Trump Accounts Program) to provide state funds to certain newborns/young children who have qualifying Trump Accounts, leveraging a federal pilot program.
    2) Adjust the priority order for awarding Opportunity Scholarships for the 2026-2027 school year if funds are insufficient.

  • The act is named the CARDINAL Act: “Creating Accounts for Residents to Develop Investment and Navigate Adulthood Later.”

2) Key provisions

A. Supplemental State Funds for Trump Accounts Program

  • Definition and scope

    • Establishes a new program under the State Education Assistance Authority (the Authority).
    • An “Eligible child” is defined by:
    • Being an eligible child under 26 U.S.C. § 6434 as of July 4, 2025.
    • Born in North Carolina between January 1, 2025 and December 31, 2028 (i.e., after 12/31/2024 and before 1/1/2029).
    • Household income at or below 300% of the federal poverty guidelines.
    • The program relates to the federal Trump Accounts Contribution Pilot Program (26 U.S.C. § 6434) and Trump Accounts (26 U.S.C. § 530A).

  • State contributions

    • The Authority shall contribute $1,000 to every eligible child who is or becomes the beneficiary of a Trump Account that receives funds from the U.S. Treasury under the federal pilot program.
    • Before depositing state funds, the Authority must verify with the Department of Health and Human Services that the beneficiary was born in NC within the 2025–2028 window.

  • Trust Fund

    • Creates the Supplemental State Funds for Trump Accounts Trust Fund (an institutional trust fund per G.S. 116-36.1).
    • All program funds and earned interest go into this Trust Fund.
    • Administrative and program operation costs may be paid from the Trust Fund, with up to 4% of available funds per fiscal year used for administering the program.

  • Administration

    • The Authority may adopt rules to implement the program.
    • The Authority may coordinate with the U.S. Secretary of the Treasury to ensure correct deposit into each child’s Trump Account.

  • Trump Accounts as IRAs

    • Trump Accounts are treated as Individual Retirement Accounts (IRAs) for purposes of this section, aligning with the Internal Revenue Code as enacted on/around July 4, 2025.

  • Reporting

    • By July 15, 2027, and annually thereafter while state funds are deposited, the Authority must report to the Joint Legislative Education Oversight Committee on:
    • The number of eligible children receiving contributions.
    • The amount in the Trust Fund.
    • Any additional funds needed to ensure all eligible children receive the $1,000 state contribution.

  • Funding transfer (nonrecurring funds)

    • Transfers $192,000,000 in nonrecurring funds from the Opportunity Scholarship Grant Fund Reserve (2025-2026) to the Trust Fund to be used for awards in the 2026-2027 fiscal year.

B. Revision of Opportunity Scholarship Award Priority (2026-2027)

  • If there are insufficient funds to award all eligible Opportunity Scholarships in 2026-2027, the Authority must prioritize awards in the following order, for applications received by March 1, 2026:

    1. Eligible students who:
      • Received a scholarship in 2025-2026, and
      • Qualify for a scholarship amount under any of the subparts (1)-(4) of subsection (b2) of G.S. 115C-562.2.
    2. Eligible students qualifying for the amount under subdivision (1) of subsection (b2).
    3. Eligible students qualifying for the amount under subdivision (2) of subsection (b2).
    4. Eligible students qualifying for the amount under subdivision (3) of subsection (b2).
    5. Eligible students who:
      • Received a scholarship in 2025-2026, and
      • Qualify for the amount under subdivision (4) of subsection (b2).
    6. All remaining eligible students.

  • This creates a tiered priority if funds are insufficient.

3) Who is affected

  • Eligible children born in NC between 2025 and 2028 with household incomes at or below 300% of the federal poverty line.
  • Families/guardians of those children who participate in the Trump Accounts federal pilot, and who have a Trump Account that can receive state matching funds.
  • Public schools and families applying for Opportunity Scholarships; the bill changes the award sequence in low-funding scenarios.
  • State Education Assistance Authority (administrative and reporting responsibilities).

4) Timeline and effective date

  • Effective date: July 1, 2026.
  • Funding and implementation timeline:
    • $192 million in nonrecurring funds redirected to fund the Trump Accounts Trust Fund for the 2026-2027 fiscal year.
    • The Trump Accounts Program requires verification of birth location and timing (2025–2028 birth window) prior to depositing state funds.
    • Annual reporting requirement starts by July 15, 2027, and continues in subsequent years.

5) Additional notes

  • The program ties state contributions to federal Trump Account deposits, creating a public-private (federal-state) funding mechanism linked to a specific federal pilot.
  • The act emphasizes administrative costs cap (up to 4% of funds in the Trust Fund per year) and requires adherence to federal Subchapter rules for Trump Accounts (as IRA-like accounts).

If you’d like, I can provide a side-by-side comparison with existing NC law (e.g., current Opportunity Scholarship rules) or a simple Q&A highlighting potential implications for families and local education agencies.

Compiled from official sources — confirm details with the bill’s official record.

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