Part I

Creates the First Responder Pay Increase Program, increasing by 10% the base salary of a law enforcement officer, firefighter, EMS, dispatcher, or nurse employed by a public hospital or government healthcare facility. Appropriates $700,000,000 from the General Fund in each year of the 2025-27 biennium to the Reserve for First Responder Pay Increases to provide for the permanent 10% pay increases. Directs the Department of Public Safety and the Department of Health and Human Services to distribute the funds to eligible employers (State agencies or local governments employing first responders) based on the total cost of implementation based on eligible employees. Specifies that the full amount must be used for pay increases and may not be used for administrative costs or other purposes. Makes the 10% increase effective July 1, 2025, in addition to the employee’s base salary on that date. Clarifies that the pay is subject to retirement contributions.

Requires the Office of State Management and Budget to coordinate with state agencies to distribute funds to employers no later than August 15 of each fiscal year in the 2025-27 biennium. Requires that to be eligible, a first responder must be employed as of July 1 of the fiscal year, and requires employers to certify the cost of implementing the 10% increase by August 1 of the fiscal year. Requires employers to submit a certification that the pay increase is implemented by January 15 of each fiscal year.

Part II

Creates the Teachers’ Pay Increase Program, increasing by 10% the base salary of a teacher, instructional support staff, principal, or assistant principal employed by a local school unit, charter school, or regional schools. Appropriates $900,000,000 from the General Fund in each year of the 2025-27 biennium to the Reserve for Teachers’ Pay Increases to provide for the permanent 10% pay increases. Directs the Department of Public Instruction to distribute the funds to eligible schools based on the total cost of implementation based on eligible employees. Specifies that the full amount must be used for pay increases and may not be used for administrative costs or other purposes. Makes the 10% increase effective July 1, 2025, in addition to the teacher’s base salary on that date. Clarifies that the pay is subject to retirement contributions.

Requires the Office of State Management and Budget to coordinate with the Department of Public Instruction to distribute funds to employers no later than August 15 of each fiscal year in the 2025-27 biennium. Requires that to be eligible, a teacher must be employed as of July 1 of the fiscal year, and requires schools to certify the cost of implementing the 10% increase by August 1 of the fiscal year. Requires schools to submit a certification that the pay increase is implemented by January 15 of each fiscal year.

Part III

Makes the programs subject to GS Chapter 143C (State Budget Act), and provides that if there is a conflict between the act and GS Chapter 143C, that chapter controls.

Effective July 1, 2025.