Part I.

Appropriates $1 million from the General Fund to the UNC Board of Governors (BOG) for 2025-26 to be allocated to the State Education Assistance Authority  (Authority) to increase award amounts for recipients of scholarships for the children of wartime veterans for the 2025-26 academic year up to the full amounts permitted, to the extent those awards were reduced by the Secretary of the Department of Military and Veterans Affairs (Secretary). Authorizes the Authority to use any remaining funds to award additional scholarships for the above qualifying children beginning in the 2026-27 academic year.

Part II.

Effective July 1, 2026, authorizes the Secretary to increase the number of the described scholarship classes for new applications for children of wartime veterans from 100 to 200 children in each class for the 2026-27 academic year. Appropriates $10 million from the Escheat Fund to the BOG in recurring funds beginning in 2026-27 to be allocated to the Authority to support the additional scholarships.

Part III.

Extends the provisions of Section 6 of SL 2025-72, which allows for additional awards under the Children of Wartime Veterans Scholarship to those children notwithstanding existing provisions of GS Chapter 143B and any rules thereunder, so that it also applies in the 2026-27 academic year. For the 2026-27 academic year only, authorizes the Secretary to determine whether to prioritize awards of scholarships for new applicants who apply to receive scholarships as undergraduates, qualify as residents for tuition purposes, and are otherwise eligible to receive scholarships in line with Program requirements. For the 2026-27 academic year only, also authorizes the Secretary to determine whether to establish a standardized payment schedule or formula within available funds for the academic year to ensure the efficient and effective administration of the scholarships.  Specifies that the authorization to the Secretary to consult with the Authority on whether to reduce the room and board allowance only applies for the 2025-26 academic year. Authorizes the Secretary to establish a lottery for selection of scholarship students, in addition to existing authorization of pro rata scholarship awards. Makes technical and conforming changes.

Part IV.

Effective when it becomes law, except as otherwise provided.