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SB 816

Child. of Wartime Vets Sch'ship Funds and Flex.

2025-2026 Session Introduced by Val Applewhite and 11 co-sponsors

The bill increases funding and expands capacity for the Children of Wartime Veterans Scholarship, boosting 2025-26 awards and allowing up to 200 awards per class in 2026-27 with br

Passed 1st Reading
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Bill Summary · SB 816

Summary of SB 816 (Session 2025) — North Carolina

Short Title

Child. of Wartime Vets Sch'ship Funds and Flex.

Purpose

To appropriate funds and expand flexibility for the Children of Wartime Veterans Scholarship Program, including increased awards for the 2025-2026 academic year, expanded scholarship capacity for the 2026-2027 year, and greater administrative flexibility for the program through the 2026-2027 academic year.

Key Provisions

Part I — 2025-2026 Academic Year: Increased Award Funding

  • The General Fund appropriation of $1,000,000 (nonrecurring) to the UNC System’s Board of Governors, allocated via the State Education Assistance Authority (SEAA), to raise scholarship awards for 2025-2026 to the full amounts allowed under Part 2 of Article 14, Chapter 143B, to the extent those awards were reduced due to recent Secretary of the Department of Military and Veterans Affairs’ “award flexibility” under S.L. 2025-72 Part VI.
  • If funds remain after boosting existing award amounts, any remaining dollars may fund additional scholarships for qualifying children of wartime veterans in the 2026-2027 academic year.

Part II — 2026-2027 Academic Year: Expanded Scholarships

  • Section 2(a): For new applications for Class II and Class III scholarships, the Secretary of the Department of Military and Veterans Affairs may increase the number of annual awards from 100 to 200 in each class (doubling the capacity for these classes).
  • Section 2(b): Escheat Fund appropriations of $10,000,000 in recurring funds begin in FY 2026-2027 to support the expanded scholarship awards (following the increased class capacity).
  • Section 2(c): Effective July 1, 2026.

Part III — Expanded Flexibility for the 2026-2027 Academic Year

  • Section 6 of S.L. 2025-72 is amended to broaden administration of the program:
    • (a) Expand eligibility funding sources via Escheat Fund if additional eligible recipients outside the Department’s identified pool qualify and attend public colleges/universities in NC.
    • (b) For 2025-2026 and 2026-2027:
    • a) After consultation with the SEAA, determine priority of new applicants for 2025-2026 across Class I-A, I-B, IV, and then Class II/III based on funds.
    • b) For 2026-2027, prioritize undergraduate applicants who are NC residents and meet general eligibility.
    • c) Establish potential adjustments to room-and-board allowances or standardize a payment schedule, based on demand and funds.
    • d) If funds remain insufficient after prioritization, allow the SEAA/Authority to adjust and standardize awards (including lottery or prorated room/board) for efficiency.
    • (2) All scholarship notifications must state the award is contingent on available funds.
    • (3) Funds disbursed per G.S. 116-204(11a).
    • (4) Administrative costs capped at 2.5% of the total program funding; unexpended funds carried into an institutional trust fund (per G.S. 116-36.1) to be used for scholarships and administration in subsequent years.

Section 6(c)

  • Effective date: June 30, 2025.
  • Applies to awards for 2024-2025, 2025-2026, and 2026-2027 academic years.

Who Is Affected

  • Recipients and potential recipients of the Children of Wartime Veterans Scholarship.
  • The State Education Assistance Authority (SEAA) and UNC Board of Governors (through funding allocations and administration).
  • Department of Military and Veterans Affairs (through funding decisions and class-level award determinations).
  • Eligible students attending public or eligible private NC colleges/universities, including consideration of residency status for 2026-2027.

Timelines & Funding

  • FY 2025-2026: $1,000,000 nonrecurring appropriation to boost 2025-2026 awards; funds may support additional scholarships if surplus.
  • FY 2026-2027: $10,000,000 recurring Escheat Fund appropriation to support expanded Class II/III scholarships (up to 200 per class); effective July 1, 2026.
  • Effective date for flexibility provisions: June 30, 2025; applicable to 2024-2025 through 2026-2027 academic years.

Notes

  • The bill emphasizes preserving program integrity while expanding access and flexibility in funding and administration.
  • Awards remain contingent on fund availability; administrative costs capped; unspent funds directed to an institutional trust for ongoing scholarship support.

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

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