Enacts GS 115C-218.106, establishing the Charter School Transportation Grant Program (Program) to award grant funds to a charter school for reimbursement of a certain percentage of eligible student transportation costs incurred by the school in accordance with the statute.

Permits a charter school to apply to the Department of Public Instruction (DPI) for grant funds under the Program for transportation costs incurred for each semester in accordance with the following eligibility specifications: (1) a charter school with a student enrollment of at least 50% of its students residing in households with an income level not in excess of the amount required for a student to qualify for the federal free or reduced‑price lunch program is eligible for a reimbursement of 65% of its eligible costs and (2) a charter school with a student enrollment of less than 50% of its students residing in households with an income level not in excess of the amount required for a student to qualify for the federal free or reduced‑price lunch program is eligible for a reimbursement of 25% of its eligible costs.

Directs DPI, by August 1 of each year, to establish the criteria and guidelines for the grant application process for the upcoming school year, including criteria for eligible student transportation costs to be covered under the Program and any documentation required to be submitted with the application. Requires DPI to accept applications until December 31 for eligible student transportation costs incurred during the fall semester of the school year and until June 30 for the spring semester of the school year.

Directs DPI to award grant funds under the Program to charter schools by January 15 for eligible costs incurred during the fall semester and July 15 for eligible costs incurred for the spring semester of the prior school year. Authorizes DPI to use other funds within the State Public School Fund for this purpose if funds appropriated to the Program in a fiscal year are insufficient. 

Directs DPI to annually report by March 15 to the Fiscal Research Division and the Joint Legislative Oversight Committee on the administration of the Program for the prior year. Sets out required information to be included in the report.

Appropriates $2.5 million in recurring funds from the General Fund to DPI to be used to award grant funds to charter schools for the reimbursements in accordance with GS 115C-218.106, as enacted.

Effective July 1, 2017.