Relating to prohibitions on business closures mandated by the executive branch; declaring an emergency.

2025 Regular Session Introduced by David Smith

Provides one-time $8 million for NC private HBCUs to fund campus capital projects, allocated by Pell-eligible NC undergraduate enrollment.

In committee upon adjournment.

SB 367 — Capital Project Funding at HBCUs (North Carolina) — Summary

Status & timing
- Introduced / first filed: March 20–24, 2025 (filed March 20; read/introduced March 24, 2025).
- Latest procedural notes: Held in committee and under submission (committee hearing May 23, 2025).
- Effective date (if enacted): July 1, 2025.

Purpose / intent
- Provide one-time capital improvement funding to selected private Historically Black Colleges and Universities (HBCUs) in North Carolina to support new and ongoing campus capital projects (infrastructure, facilities, renovations, etc.).

Key provisions
- Appropriation: $8,000,000 (eight million dollars) in nonrecurring funds for FY 2025–2026.
- Source: Education Lottery Fund (G.S. 18C‑164(a)).
- Recipient / administering agency: Office of State Budget and Management (OSBM) — funds are appropriated to OSBM for allocation.
- Eligible institutions (listed in the bill):
1. Bennett College
2. Johnson C. Smith University
3. Livingstone College
4. Shaw University
- Allocation formula: OSBM must distribute the $8 million among these four private HBCUs in proportion to each institution’s number of undergraduate students who (a) are residents of North Carolina and (b) are recipients of a federal Pell Grant.
- Use of funds: Directed for campus capital improvement projects (the bill’s text references “new and ongoing campus capital improvement projects” but does not further enumerate allowable project types or impose additional restrictions beyond the appropriation language).

Who is affected
- Direct beneficiaries: the four named private HBCUs (Bennett, Johnson C. Smith, Livingstone, Shaw).
- Indirect beneficiaries: in‑state Pell Grant undergraduate students at those institutions, campus communities (faculty, staff), and local economies that gain from capital projects and construction activity.
- Fiscal effect: a one‑time $8 million draw on the Education Lottery Fund for FY 2025–26; does not authorize recurring funding.

Potential impacts and considerations
- Institutional impact: provides capital resources to address deferred maintenance, facility upgrades, safety/ADA improvements, academic or student‑support facility investments, or other capital priorities chosen by each HBCU subject to the allocation.
- Equity / targeting: allocation keyed to in‑state undergraduate Pell recipients concentrates funds toward institutions serving low‑income North Carolina resident students.
- Fiscal note: nonrecurring appropriation; absent additional language, long‑term operations or maintenance costs arising from capital projects would fall to the institutions or future appropriations.

Procedural / next steps
- OSBM will receive and allocate funds only after enactment.
- If enacted before July 1, 2025, the appropriation will be available for FY 2025–26.
- Implementation details (timing of distributions, documentation required of recipients, eligible project definitions) would typically be handled administratively by OSBM or in follow‑up guidance unless further legislative language or provisos are enacted.

Source: Text of SB 367 (Edition 1) — Act to provide funding to North Carolina private HBCUs; appropriation and allocation formula as shown in Sections 1(a)–(b).