Summary of HB 1020 (Session 2025, North Carolina)
Title: Personal Education Student Account Class Aides and Children of Wartime Veterans Funds
Sponsor: Rep. Paré
Purpose
- Part I: Authorize the use of Personal Education Student Account (PESA) funds to provide education-related support services delivered by a one-to-one classroom aide for eligible students in Part 1 or Part 2 nonpublic schools.
- Part II: Provide funding to increase and expand scholarships for the Children of Wartime Veterans program (UNC Board of Governors/Authority) to specified levels and timelines.
Part I — Use of PESA Funds for One-to-One Classroom Aides
Key Definitions and Scope
- Defines “one-to-one classroom aide” as an individual who holds at least a high school diploma (or equivalent) and provides support to an eligible student in a classroom or related educational settings at the request of the Part 1 or 2 nonpublic school.
- Applies to eligible students enrolled in Part 1 or Part 2 nonpublic schools.
Parental Agreement and Fund Use Requirements
- Parents of scholarship recipients must sign a yearly written agreement (to be submitted electronically) before receiving funds. The agreement cannot be executed by a third party.
- If the parent fails to comply, scholarship funds may be forfeited and reallocated to another eligible student.
Qualifying Expenses Eligible for PESA Funds (subsection 3(a) of §115C-595)
- Tuition and fees for compliant nonpublic schools, textbooks, tutoring/teaching services, curricula, standardized tests, account management fees, services provided by a public school (including individual classes and extracurriculars), insurance/surety bond premiums, educational therapies, educational technology, student transportation, merchant/transaction fees (capped at 2.5%), and education-related support services by a one-to-one classroom aide for an eligible student enrolled in a Part 1 or Part 2 nonpublic school.
- Crucially, education-related support services from a one-to-one classroom aide are included as an eligible expense.
Restrictions (subsection 4)
- Prohibits using funds for: non-approved hardware/tech not deemed educational technology; consumable supplies; higher education tuition/fees; nonpublic schools that do not meet certain criteria; and educational-related services from a one-to-one classroom aide who is a close family member or an employee/contractor of the Part 1 or Part 2 nonpublic school.
Effective Date
- The changes in Part I become effective starting with the 2026-2027 school year.
Part II — Funds for the Children of Wartime Veterans Scholarship
Purpose
- Increase and sustain scholarship funding for children of wartime veterans under Part 2 of Article 14, Chapter 143B (State Education Assistance Authority, under UNC system governance).
Funding and Timeline
- Sec. 2(a): For 2025-2026, allocate $1,000,000 (nonrecurring) from the General Fund to the State Education Assistance Authority to boost award amounts for wartime veterans’ children up to the full statutory limits under Part 2, Article 14, to the extent reductions were applied via the Secretary of the Department of Military and Veterans Affairs under Part VI of S.L. 2025-72. If funds remain after this increase, remaining amounts may fund additional scholarships beginning in the 2026-2027 academic year.
- Sec. 2(b): For 2026-2027, appropriate $7,000,000 (recurring) from the General Fund to support additional scholarships for qualifying children of wartime veterans under Part 2, Article 14.
- Sec. 2(c): Subsection (b) becomes effective July 1, 2026.
Part III — Effective Date
- General effective date: upon enactment, with specified provisions taking effect in the 2026-2027 academic year for Part I and the stated funding provisions in Part II.
Who Is Affected
- Eligible students in Part 1 or Part 2 nonpublic schools who receive PESA funds and may access education-related support services, including one-to-one classroom aides.
- Parents/guardians of eligible students who must sign annual agreements.
- Families of wartime veterans’ children who are recipients of the scholarship program (via UNC/Authority-managed funds).
- Nonpublic schools participating in Part 1 or Part 2 must provide documentation of requested education-related support services.
Key Impacts
- Broadens the use of PESA funds to include direct classroom aide services for eligible students, potentially expanding access to individualized in-class support.
- Adds a dedicated funding stream and larger ongoing commitment for scholarships to children of wartime veterans, increasing award levels and program reach.
- Introduces compliance and documentation requirements for use of PESA funds and tight controls on eligible expenditures and who can provide services.
Note: This summary focuses on substantive provisions, funding implications, and timelines as outlined in the bill text.