Part I.

Directs the Department of Health and Human Services, Division of Health Benefits (DHB) to amend the North Carolina Innovations waiver to increase the waiver by 6,635 slots. Requires the additional slots be made available by July 1, 2026 or as soon as practicable after that date. Appropriates $240 million in recurring funds and associated receipts to DHB beginning with 2026-27 to be used to fund the additional slots. Effective July 1, 2026.

Part II.

Amends GS 115C-562.1(3a) to add to the qualifying criteria for eligible students under the opportunity scholarship grant program administered by the State Education Assistance Authority. Requires the student to reside in a household with an income level not exceeding 200% of the amount required for the student to qualify for the federal free or reduced-price lunch program. Amends GS 115C-562.2 to eliminate scholarship grant award amounts previously specified for qualifying students residing in households with income levels in excess of 200% of the amount required for the qualification for the federal free or reduced-price lunch program.

Amends GS 115C-562.8, reducing the appropriations scheduled for the Opportunity Scholarship Grant Fund Reserve (Reserve) in specified amounts beginning for fiscal years 2027-28 (from $700 million to $460 million) through 2031-32 (from $800 million to $560 million), and 2032-33 and every year thereafter (from $825 million to $585 million).

Reduces the recurring funds appropriated to the Reserve in 2026-27 for the award of opportunity scholarship grants in 2027-28 by $240 million.

Effective July 1, 2026, and applies to applications for the award of scholarship funds beginning in the 2027-28 school year.