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North Carolina Public School Leaders,
I hope the school year has gotten off to a good start. The North Carolina Department of Public Instruction (NCDPI) has received several questions over the past week about the status of funding allotments that have been paused while we await a comprehensive state budget. We wanted to provide you with a brief update.
Since July 1, 2025, NCDPI has paused all contracts and funding allotments for Fiscal Year (FY) 2025-26 that were proposed to be reduced or eliminated in either the House or Senate versions of Senate Bill 257 (“2025 Appropriations Act”). This includes funding for Advanced Placement (AP) and International Baccalaureate (IB) exam fees, stipends for Master of School Administration (MSA) interns, and several other contracts and funding allotments.
On August 6, Governor Stein signed House Bill 125 (“Continuing Budget Operations”), which enacted a base budget for FY 2025-26. With the enactment of a base budget, it is my understanding that NCDPI can proceed with the execution of the contracts and the distribution of the funding we have paused, unless that funding was eliminated in House Bill 125.
On August 19, I sent a letter to the Appropriations Chairs in the House and Senate to notify them that, unless there were any concerns or objections, or the General Assembly enacts a comprehensive state budget for FY 2025-26 or other legislation that directs NCDPI how to proceed, NCDPI will plan to move forward on September 2, 2025, with the execution of contracts and the distribution of funds that have been paused. September 2 was chosen because it comes immediately after the potential conclusion of a session previously scheduled by the General Assembly. As of yesterday evening, I have not heard anything from the General Assembly to suggest that my understanding is not correct. Barring any additional action by the General Assembly, NCDPI anticipates that we will resume preparation for the distribution of funds and the execution of contracts that have been paused, including funding for Advanced Placement (AP) and International Baccalaureate (IB) exam fees and stipends for Master of School Administration (MSA) interns, on Tuesday, September 2.
NCDPI staff will follow up with relevant PSU leadership next week regarding next steps for resuming the contracts and distribution of funding. In the meantime, if you have any questions or need additional information, please let us know.
Thanks for your leadership and patience as we continue to work through these budget issues.
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