Section 1

Adds new Article 10 to Chapter 115D that pertains to workforce grant programs. Enacts GS 115D-150 establishing the Career and College Pathways Innovation Challenge Grant Program (Program) to develop local and regional partnerships to foster innovations for postsecondary enrollment increases and completion for students enrolling directly from high school and adults returning to education, ensuring alignment between educational options and labor market needs, and eliminating educational opportunity gaps.

Enacts GS 115D-151, defining approved grant award and participating community college.

Enacts GS 115D-155 mandating the State Board of Community Colleges (Board) to adopt rules and policies to administer the Program, including for the following purposes: (1) administration and awarding grant funds based on a competitive grant process to local and regional partnerships with cross-sector collaboration among the entities listed; (2) the use of funds by participating community colleges and reporting of expenditures by those schools and provides guidelines for the Board to use when determining which applications to approve; and (3) the monitoring and control of spending of grant funds, including support and technical assistance for participating community colleges. Allows up to 4% of the appropriated funds to the Community Colleges System for Program implementation each fiscal year to be used for administrative costs and up to 10% to be used for marketing and communications.

Enacts GS 115D-160 limiting the Board to award grants to participating community colleges in an amount up to the actual cost associated with a community college application or $200,000, whichever is less. Mandates that awards be reduced by an equivalent percentage if funds appropriated for the Program are insufficient to award all approved grant awards to ensure funding is awarded to all participating community colleges.

Enacts GS 115D-165 detailing reporting requirements for the Board including collaboration with the Department of Commerce to analyze Program data to the Joint Legislative Education Oversight Committee on the listed information from the prior academic year.

Section 2

Mandates that for the 2025-26 and 2026-27 fiscal years the Board allocate $2 million to be directed to participating areas in the listed 39 counties and Eastern Band of Cherokee Indians affected by Hurricane Helene notwithstanding GS 115D-160. Permits the Board to use funds to award grants to participating community colleges outside of the listed areas in the event the total amount of grant awards to participating community colleges in those areas is less than $2 million for the 2025-26 or 2026-27 fiscal year.

Section 3

Appropriates $5 million in recurring funds for 2025-26 from the General Fund to the Community College System Office to implement the provisions of this act.

Section 4

Effective July 1, 2025.