2026 Budget Technical Corrections - II.

The bill's entire purpose changed from appropriating capital project funds (over $1 billion to State Capital and Infrastructure Fund) to making technical and clarifying amendments to the 2026 Current Operations Appropriations Act and other acts.

Establishes the North Carolina High School Redesign Commission with 15 members to explore and recommend changes to high school and higher education policies, including flexible diploma requirements, work-based learning, industry credentials, competency-based alternatives, and AI uses in career exploration.

Restructures the Local Government Commission from its prior composition to nine members with specific appointment authorities: one by the Governor (current/former mayor or city board member), two by the General Assembly on recommendation of the President Pro Tempore, two on recommendation of the Speaker, and one by the State Treasurer (county commissioner).

Prevents the Town of Kernersville from exercising extraterritorial jurisdiction over a specific Forsyth County parcel (PID 6896-04-9921), subjecting it to Forsyth County planning and zoning authority instead.

Allocates $706,128,539 for Hurricane Helene disaster recovery, including $450 million for nonfederal share of federal disaster programs, a $27 million directed grant to Madison County, $5 million to Veterans Restoration Quarters of Asheville, and $2.6 million to long-term recovery groups in HUD-designated distressed counties.

Adjusts Stabilization and Inflation Reserve transfers for 2026-2027: reduces the Office of the State Auditor transfer by $500,000 and increases the State Board of Elections transfer by $500,000.

Establishes directed grant disbursement thresholds: $100K or less may be paid as a lump sum; $100K to $1M must be disbursed in monthly or quarterly installments; over $1M requires 25% installments with prior expenditure verification before each subsequent payment.

Clarifies that released time religious instruction in public schools must be at least one hour but no more than four hours per calendar week, replacing prior language that set a minimum of one hour and a maximum of four hours of excused absences.

Extends the Golden LEAF Hurricane Helene Bridge Loan interest-only period from 24 months to 30 months and adds requirements for written certification of use, UCC financing statement security, and recapture of funds if a business fails to comply with program requirements.

Expands the Small Business Infrastructure Grant Program to allow projects that had permitting or construction started before Hurricane Helene to be eligible, limited to actual repair costs directly attributable to the storm. Requires reconsideration of prior closed or denied applications.

Adds two additional dams (NC01850 and NC00290) to the list of eligible projects under the $20 million Dam Safety Grant Program, with a per-project cap of $4 million.

Changes the reversion date for unencumbered agricultural disaster crop loss program funds from October 1, 2026 to January 1, 2027, giving the Department of Agriculture additional time before up to $20 million is reallocated to the Forest Service for wildfire mitigation.

Accelerates the TeachReadyNC registered teacher apprenticeship program timeline, requiring the Department of Public Instruction to issue initial requests for applications by October 1, 2026, for programs beginning as soon as practicable and no later than the 2027-2028 school year.

Expands allowable uses of disaster recovery match funds and Helene Fund state match funds to include repaying costs associated with federal deobligations, not just the State's share of FEMA program costs.