Establishes the NC Competency-Based Education Innovation Grant and Network Program (Program) to provide funding and support to schools and districts to support the transition to competency-based education (CBE) models that focus on mastery of learning rather than instructional time. Specifies that the grant aims to promote innovative instructional practices, flexible assessment models, and systemic shifts to ensure all students progress based on demonstrated proficiency. Sets forth four program objectives, including: (1) support schools and districts in developing personalized, CBE models that allow students to progress at their own pace; (2) utilize formative and performance-based assessments that measure student mastery of skills and knowledge, including the use of AI learning tools; (3) provide common professional development for educators on instructional strategies and assessment practices aligned with transitioning to CBE; and (4) develop and share resources, implementation strategies, and lessons learned to expand CBE across North Carolina. Sets Phase One (where public school units submit applications and complete any planning or organizational duties) to begin with the 2025-26 school year and continue until the conclusion of the 2028-29 school year, as specified. Tasks the Department of Public Instruction (DPI) with creating the application as described and selecting participants as set forth in the specified timeline. Sets grant awards at $330,000 to each participating school. Requires schools to use $95,000 each school year to receive training on the implementation of CBE in the school, with the remaining amount to be used for costs associated with the transition to CBE, including travel costs and CBE resources. Provides for grant funds to remain available until the end of the 2028-29 year.

Requires DPI to select a third-party vendor that is an educational support provider with a nationally recognized, research-based instructional and leadership framework, as described, to develop publicly available, standards-aligned proficiency scales for all content areas and grade levels to ensure educators in the participating schools have the tools necessary to successfully transition to CBE approaches. Requires the vendor to provide annual professional development events throughout the regions of the state to ensure educators can engage in learning about CBE approaches, including implementation of the proficiency scales developed. Requires DPI to develop, in collaboration with the vendor, a CBE network to support the long-term transition to CBE in the seven specified ways and to provide support and technical assistance, professional learning opportunities, and access to the CBE network for all grant recipients.

Requires each participating school to submit a quarterly progress report to DPI detailing implementation of CBE in the school as specified. Requires DPI to establish due dates and methods of submission. Requires DPI to submit a final report on the outcomes of Phase One of the Program, as described, by December 1, 2029. Declares the General Assembly’s intent to fund the Program with nonrecurring funds for the 2025-26 year. Effective when the Current Operations Appropriations Act of 2025 becomes law and if that bill appropriates funds for the purposes detailed in the act.