Amends GS 116-74.44 (North Carolina Principal Fellows Program established; administration) to add new language authorizing grants to school leader preparation programs to develop training for principals in addition to the existing forgivable scholarship loans. Makes a corresponding change to GS 116-74.45 (Grant Applications; priority).

Amends GS 116-74.46 (Recipient selection; use of grant funds; duration and conditions of grants; reporting requirements) to specify that up to two grants for training development for principals may be issued each fiscal year, each for $250,000, and the duration of these grants will be one year, but may be renewed on a discretionary basis. Makes corresponding changes to the statute to reference the existing forgivable scholarship program and new grant program.

Amends GS 116-74.41B (The North Carolina Principal Fellows Trust Fund) to authorize spending of trust fund monies on programming to improve principal preparation. Adds new subsection (c), allowing reallocation of any remaining funds in the Trust Fund that are not obligated or encumbered to any of program monitoring and evaluation, extracurricular enhancement activities, or the previously mentioned programming for principal preparation.

Effective July 1, 2025.