Principal Fellows Changes.

HB 566 establishes a competitive grant program to support North Carolina's Principal Fellows Program, directly affecting school leader preparation programs and future principals. It provides forgivable scholarship loans to participants in these programs (repaid only if they don’t work in North Carolina schools) and grants to eligible entities to develop innovative principal training methods. The bill sets specific grant terms, including 2-6 year durations for loan programs and 1-year terms for innovation grants, with funding capped at $250,000 per recipient annually. Recipients must report on key metrics like program completers’ placement rates in high-need schools and their performance evaluations. The program also allocates funds for administrative costs and program monitoring, requiring public sharing of non-identifiable materials to promote best practices.