Bill would redirect $150 million from scholarships to state employee pay

The State Treasurer would run a dedicated fund to supplement state employees' pay when monthly health plan premiums rise. The Fund for State Employee Premium Stabilization would serve state employees facing higher premiums for the North Carolina State Health Plan for Teachers and State Employees. Payments would aim to maintain take-home pay, without guaranteeing a full offset. The Treasurer would consult the state human resources director and adopt rules for running the fund. The bill gives July 1, 2026, as its proposed effective date. The recorded actions do not show enactment.

The State Education Assistance Authority would transfer $150 million from the Opportunity Scholarship Grant Fund Reserve to the employee premium fund. The transfer would use money from the Opportunity Scholarship Grant Fund Reserve. The money was set aside in fiscal year 2025–2026 for scholarship awards in fiscal year 2026–2027. The transfer would apply despite other laws governing that money. The transfer would fall under the bill's proposed July 1, 2026, effective date.