Establishes the two-year School Performance Grade Update Pilot Program (program) to be implemented for a small group of public school units for the 2024-25 school year and all public school units for the 2025-26 school year. Describes the program's purpose and specifies that the information collected for the program does not replace other statutory requirements regarding school performance grading. Directs the Department of Public Instruction (DPI) to develop criteria to be used for performance grades and make the criteria available to units within 30 days of the date the act becomes law. Directs DPI to make program applications available within 30 days of the date the act becomes law, with interested units required to submit an application within 30 days of the date they become available. Details selection of participants for the 2024-25 school year, including requiring the selection of one charter school and one local school administrative unit from each State Board of Education (State Board) region. Mandates participation in the program if selected and requires participating units to report school performance criteria, as determined by DPI, to DPI. Directs DPI to report to the specified NCGA committee by November 1, 2025, regarding program outcomes for the 2024-25 school year with specified required content and distribution of the report. Requires statewide participation for the 2025-26 school year and for all units to report school performance criteria to DPI. Directs DPI to submit a final report to the specified NCGA committee by November 1, 2026, on the program outcomes of the 2025-26 school year with specified required content, including recommend legislation to make the program permanent and replace the existing performance grade system. Requires distribution of the final report as specified. States legislative intent to make statutory changes based on the final report to issue a single school performance grade weighted as 50% student performance, 30% student growth, and 20% based on criteria determined by DPI resulting from the program outcomes. 

Appropriates $150,000 from the General Fund to DPI to implement the program.