North Carolina 2025 Session Status: In Committee Bipartisan · 13 D · 1 I cosponsors

HB 706 — Change to Needs-Based Capital Funding.

Last action — Passed 1st Reading

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced April 02, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Advancing 42% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 14 sponsors

    3 primary, 11 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (13 D · 1 I) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

13 added · 12 removed

Plain-language change summary

The updated version of House Bill 706 removes a specific reference to the original draft's primary sponsor, Representative Lopez, and includes additional sponsors, indicating broader support for the bill. The change specifies that the bill now focuses on providing needs-based capital funding for both public schools and community colleges in North Carolina. This matters because it highlights an increased collaborative effort to support educational institutions in addressing their funding needs, making it more likely that the bill will receive attention and potential approval.

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GENERAL ASSEMBLY OF NORTH CAROLINA H.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 706 Short Title:
706 Apr 2, 2025 SESSION 2025 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH40414-NG-61 Short Title:Change to Needs-Based Capital Funding.
Change to Needs-Based Capital Funding.
Representative Lopez.
Representatives Lopez, Majeed, Belk, and Johnson-Hostler (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
A BILL TO BE ENTITLED AN ACT TO MODIFY THE PRIORITIZATION OF THE ALLOCATION OF GRANTS FOR THE NEEDS-BASED PUBLIC SCHOOL CAPITAL FUND AND TO OTHERWISE PROHIBIT THE ALLOCATION OF EDUCATION FUNDS BASED ON THE ECONOMIC TIER DESIGNATIONS ASSIGNED BY THE DEPARTMENT OF COMMERCE.
Rules, Calendar, and Operations of the House April 3, 2025 A BILL TO BE ENTITLED AN ACT TO MODIFY THE PRIORITIZATION OF THE ALLOCATION OF GRANTS FOR THE NEEDS-BASED PUBLIC SCHOOL CAPITAL FUND AND TO OTHERWISE PROHIBIT THE ALLOCATION OF EDUCATION FUNDS BASED ON THE ECONOMIC TIER DESIGNATIONS ASSIGNED BY THE DEPARTMENT OF COMMERCE.
The amount of matching funds for a county awarded a grant shall be published annually by the Department of Public Instruction prior to any application period.
The amount of matching funds for a county awarded a grant shall be published annuallybythe Department of Public Instruction prior to anyapplication period.
*DRH40414-NG-61* General Assembly Of North Carolina Session 2025 SECTION 2.(b) Notwithstanding any other provision of law, beginning with the 2025-2026 fiscal year, the Department of Public Instruction shall allocate in an equal amount per school on a recurring basis the cooperative innovative high school supplemental allotment to local school administrative units for each cooperative innovative high school located in the unit that (i) is approved by the State Board of Education pursuant to G.S.
*H706-v-1* General Assembly Of North Carolina Session 2025 SECTION 2.(b) Notwithstanding any other provision of law, beginning with the 2025-2026 fiscal year, the Department of Public Instruction shall allocate in an equal amount per school on a recurring basis the cooperative innovative high school supplemental allotment to local school administrative units for each cooperative innovative high school located in the unit that (i) is approved by the State Board of Education pursuant to G.S.
Notwithstanding any provision of law to the contrary, beginning with the 2025-2026 fiscal year and subsequent fiscal years thereafter, no State agency responsible for the allocation of State funds for education purposes to the elementary and secondary public schools of the State, community colleges under the jurisdiction of the State Board of Community Colleges, or the constituent institutions of The University of North Carolina shall be directed to or shall use the economic development tier designation for a county assigned by the Department of Commerce pursuant to G.S.
Notwithstanding any provision of law to the contrary, beginning with the 2025-2026 fiscal year and subsequent fiscal years thereafter, no State agency responsible for the allocation of State funds for education purposes to the elementary and secondary public schools of the State, communitycolleges under the jurisdiction of the State Board of Community Colleges, or the constituent institutions of The University of North Carolina shall be directed to or shall use the economic development tier designation for a county assigned by the Department of Commerce pursuant to G.S.
Page 2 DRH40414-NG-61
Page 2 House Bill 706-First Edition
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How this bill changes current law

3 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill modifies eligibility criteria for local matching funds and prohibits the use of economic tier designations in allocating education funds.

  • N.C.G.S. § 115C-546.11

    An eligible county is a county with an adjusted market value of taxable real property of less than forty billion dollars ($40,000,000,000). → An eligible county is (i) a county with an adjusted market value of taxable real property of less than forty billion dollars ($40,000,000,000) or (ii) a county that contains census tracts that are experiencing persistent poverty or are identified as having low to moderate income, as identified by the United States Department of Housing and Urban Development.

    This change expands eligibility to counties with persistent poverty or low to moderate income areas.

  • N.C.G.S. § 115C-546.11

    The local match requirement is calculated as follows: Adjusted Market Value of Taxable Real Property Over Up to Percentage Match $0 $2 billion 0% $2 billion $10 billion 5% $10 billion $20 billion 15% $20 billion $30 billion 25% $30 billion $40 billion 35% → A county that is eligible due to containing census tracts that are experiencing persistent poverty or are identified as having low to moderate income but has an adjusted market value of taxable real property of greater than forty billion dollars ($40,000,000,000) shall have a local match requirement of thirty-five percent (35%). For all other eligible counties, the local match requirement is calculated as follows: Adjusted Market Value of Taxable Real Property Over Up to Percentage Match $0 $2 billion 0% $2 billion $10 billion 5% $10 billion $20 billion 15% $20 billion $30 billion 25% $30 billion $40 billion 35%

    This change establishes a specific local match requirement for counties qualifying based on poverty or low income, changing how matching funds are calculated.

  • N.C.G.S. § 143B-437.08

    no State agency responsible for the allocation of State funds for education purposes to the elementary and secondary public schools of the State, community colleges under the jurisdiction of the State Board of Community Colleges, or the constituent institutions of The University of North Carolina shall be directed to or shall use the economic development tier designation for a county assigned by the Department of Commerce pursuant to G.S. 143B-437.08 as the basis for the allocation of those State funds.

    This clause prohibits the use of economic tier designations in decisions about allocating State education funds.

Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules, Calendar, and Operations of the House

  3. Filed

Sponsors

Sponsorship breakdown

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3 sponsors · 11 co-sponsors · 165 not signed on

Sponsors (3)

Co-sponsors (11)

Not signed on (165)

165 members have not signed on to this bill.

Show all 165 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 706?
HB 706 is sponsored by Rodney D. Pierce (Democratic), Carolyn G. Logan (Democratic), Zack Hawkins (Democratic), Pricey Harrison (Democratic), Julia Greenfield (Democratic), Aisha O. Dew (Democratic), Tracy Clark (Democratic), Maria Cervania (Democratic), Deb Butler (Democratic), Eric Ager (Democratic), Monika Johnson-Hostler (Democratic), Mary Belk (Democratic), Nasif Majeed (U), and Jordan Lopez (Democratic).
What is the current status of HB 706?
This bill is in committee in the House. Introduced April 02, 2025. It must pass committee before a floor vote.
Where can I track HB 706?
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