Instructs the State Board of Education (Board) to allocate funds to eligible local school administrative units for each year of the 2025-27 fiscal biennium to provide salary supplements to teachers and qualifying school administrators in those units as described. Defines seventeen terms, including eligible county (either a county that has an adjusted market value of taxable real property of less than $50.9 billion or Guilford County). Provides a process with formulae for allocation of the funds for salary supplements to eligible local school administrative units in eligible counties. Caps salary supplements at $5,000 per State-funded teacher. Clarifies that the appropriated funds are subject to the allocation of funds for charter schools described in GS 115C-218.105 and encourages use of funds for salary supplements. Clarifies that the formula set forth in the act is solely a basis for distribution of supplemental funding to eligible local school administrative units, with no other purpose. Prevents local school administrative units from using funds received under the act to supplant (defined) non-State funds provided for salary supplements for teachers and qualifying school administrators. Prevents the Board from allocating any funds under this section to a local school administrative unit if it determines that the unit has supplanted non-State funds in violation of the act.

Requires the Board to submit a report on the described matters for each year of the 2025-27 biennium to the named NCGA committee and the Fiscal Research Division by April 15 each year.

Effective July 1, 2025.