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Bill

SB 988

Protecting Workers in the Age of AI Act.

2025-2026 Session Introduced by Sydney Batch and 5 co-sponsors

Creates an AI Workforce Transition Program and Fund to retrain workers displaced by AI, financed by reallocating $50M and focused on healthcare, manufacturing, and infrastructure.

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WeVote Research Nonpartisan
Bill Summary · SB 988

Summary: SB 988 – Protecting Workers in the Age of AI Act (North Carolina, 2025 Session)

This summary explains the bill’s purpose, key provisions, who it affects, and important procedural details.

Purpose and Intent

  • Establish a formal framework to protect workers displaced by artificial intelligence (AI) and automation.
  • Create funding and partnerships to support retraining, credentialing, and workforce education to enable transitions for affected workers.
  • Direct the state to allocate resources toward targeted sectors with high retraining relevance.

Key Provisions

1) AI Workforce Transition Program and Fund

  • Establishment: Within the North Carolina Department of Commerce, create the Artificial Intelligence Workforce Transition Program (Program) and the AI Workforce Transition Fund (Fund).
  • Purpose: Fund retraining, credentialing programs, and workforce education for workers displaced due to AI or automation.
  • Priorities: Training programs in healthcare, advanced manufacturing, infrastructure, and other skilled trades.

2) Employer Reporting Requirement

  • Requirement: Employers receiving State economic incentives must report to the Department of Commerce any layoffs attributable to automation or AI.
  • Purpose: Improve transparency and data about AI-related workforce disruption to guide program funding and policy decisions.

3) Partnerships and Implementation

  • The Department may partner with community colleges, workforce boards, and apprenticeship programs to implement the Program’s objectives.

4) Partnership with Education Sector (Higher Ed and Career Education)

  • New statutory role for 115D-20: Adds a subdivision enabling collaboration with the Department of Commerce to implement the AI Workforce Transition Program.

5) Reallocation of Unspent Educational Funds

  • Transfer of Funds: The State Education Assistance Authority (SEAA) shall transfer $50 million in unencumbered, nonrecurring funds from the 2025-2026 end-of-year balance to the Department of Commerce.
  • Source and Use: These funds, previously intended for opportunity scholarship grants under G.S. 115C-562.8, will be redirected to establish the AI Workforce Transition Fund and to provide grants to community colleges and workforce training providers for AI-related retraining.
  • Timing: The transfer is to occur notwithstanding other law and shall be applied for the 2026-2027 fiscal year.

6) Effective Date

  • The act becomes effective July 1, 2026.

Affected Entities and Impacts

  • Workers: Individuals displaced by AI or automation stand to gain access to retraining, credentialing, and education programs to re-enter the workforce in targeted sectors.
  • Employers with State Incentives: Must report AI/automation-related layoffs, contributing to data collection and program targeting.
  • Community Colleges and Workforce Providers: Eligible recipients of funding to run retraining and credentialing programs.
  • State Agencies: Department of Commerce administers the new Program and Fund; interaction with Department of Public Instruction is limited to transfer alignment (via higher education and workforce training partners) and not direct program delivery.
  • Education Finance: $50 million redirected from SEAA funds for opportunity scholarships to support AI workforce initiatives.

Timeline and Procedural Notes

  • Effective date: July 1, 2026.
  • Funding: $50 million transfer for 2026-2027 to establish and fund the AI Workforce Transition Fund.
  • Reporting: Employers seeking state incentives must report automation/AI-related layoffs (ongoing obligation under the act).
  • Implementation: Department of Commerce to coordinate with community colleges, workforce boards, and apprenticeship programs; partnership provisions broaden program reach.

Overall Assessment

SB 988 creates a dedicated state program and funding stream aimed at mitigating workforce disruption caused by AI and automation. It prioritizes retraining in healthcare, advanced manufacturing, infrastructure, and skilled trades, and it leverages existing education and workforce systems through new interagency coordination. The bill also increases transparency around AI-related layoffs by tying them to incentives reporting, and it reallocates funds to support these transition efforts.

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

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