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Bill Summary · SB 854

Summary of SB 854 (Session 2025, North Carolina) – Tier One County Assistance

Purpose and intent

  • Official title: Economic Empowerment for Tier One Counties Act.
  • Primary aim: Provide targeted economic assistance to Tier One counties in North Carolina to address unique local economic challenges and promote self-reliance, local empowerment, and economic development.
  • Focus: Allocate funds to support locally driven economic growth in development tier one areas.

Key provisions and changes

Funding

  • Appropriation: $400,000,000 from the General Fund (nonrecurring) for the 2026‑2027 fiscal year.
  • Availability: Funds do not revert at the end of the 2026‑2027 year; they remain available until expended for purposes consistent with the act.

Use of funds

  • Eligible recipients: Grants to development tier one areas as defined by G.S. 143B‑437.08.
  • Authorized purposes for grants: Projects and initiatives that promote:
    • Self-sufficiency
    • Infrastructure improvement
    • Education
    • Workforce development
  • Department of Commerce (the Department) administration:
    • Up to 1% of the appropriated funds may be used for program administration.
    • The Department will establish guidelines for administering the program.

Grant guidelines and eligibility

  • Eligibility criterion: Only counties designated as "development tier one areas" during the funding year are eligible to receive grants.
  • Funding cap: A county may receive up to $10,000,000 in grant funding under the act.
  • Proposal requirement: Eligible counties must submit a proposal detailing the intended use of funds, including evidence that the funding will promote self-sufficiency, infrastructure, education, or workforce development.
  • Department review: Proposals must be reviewed and approved by the Department before disbursement.
  • Grant conditions: Grants may be issued only to applicants the Department believes can demonstrate that the proposed use will achieve the act’s purposes.

Compliance and clawback

  • Clawback provision: If a county receives a grant for which it is deemed ineligible, the county must forfeit the grant and repay the amounts received.

Reporting and accountability

  • Department reporting: By December 1, 2026, and annually thereafter (until all funds are exhausted), the Department must report to the chairs of the Joint Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal Research Division on:
    • Total grant disbursements
    • Number of counties applying
    • Indicated uses in grant proposals
    • Actual uses of funding
  • County reporting: By October 1, 2026, and annually thereafter (until all funds are exhausted), every county that received funding must report to the Department on:
    • How the grant funds were used
    • The remaining unspent balance
    • Any additional information the Department deems necessary to fulfill reporting obligations

Affected entities and scope

  • Affected entities: North Carolina counties designated as development tier one areas in the year funds are disbursed.
  • State agencies: North Carolina Department of Commerce administers the program, reviews proposals, disburses grants, and prepares annual reports.
  • Potential beneficiaries: Counties eligible for development tier one designation and seeking funding for infrastructure, education, self-sufficiency, or workforce development projects.

Timelines and effective date

  • Effective date: The act takes effect upon becoming law.
  • Fiscal year for funding: 2026‑2027, with nonrecurring funds allocated.
  • Reporting schedule:
    • Department reports: December 1, 2026, and annually thereafter.
    • County reports: October 1, 2026, and annually thereafter.
  • Duration: Funds remain available until expended.

Observations

  • The bill prioritizes locally driven development in the most economically challenged counties by offering substantial, nonreverting funding and a structured grant process.
  • It emphasizes accountability through mandatory proposals, Department approval, clawback provisions for ineligible recipients, and regular reporting to legislative oversight bodies.
  • Maximum grant per county is capped at $10 million, with a per-county administration and oversight framework to ensure alignment with stated goals.

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

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