Enacts GS 115C-218.106, establishing the Charter School Transportation Grant Program (Program) to award grant funds to a charter school for reimbursement of a certain percentage of eligible student transportation costs incurred by the school in accordance with the statute.

Permits a charter school to apply to the Department of Public Instruction (DPI) for grant funds under the Program for reimbursement of 65% of the eligible student transportation costs incurred in a semester where the charter school has an enrollment of at least 50% of its students qualifying for federal free or reduced-price lunch programs for that semester.

Directs DPI, by August 1 of each year, to establish the criteria and guidelines for the grant application process for the upcoming school year, including criteria for eligible student transportation costs to be covered under the Program and any documentation required to be submitted with the application. Requires DPI to accept applications until December 31 for eligible student transportation costs incurred during the fall semester of the school year and until June 30 for the spring semester of the school year.

Directs DPI to award grant funds under the Program to charter schools by January 15 for eligible costs incurred during the fall semester and July 15 for eligible costs incurred for the spring semester of the prior school year. Authorizes DPI to use other funds within the State Public School Fund for this purpose if funds appropriated to the Program in a fiscal year are insufficient.

Directs DPI to annually report by March 15 to the Fiscal Research Division and the Joint Legislative Education Oversight Committee on the administration of the Program for the prior year. Sets out required information to be included in the report.

Appropriates $2.5 million in recurring funds for 2017-18 from the General Fund to DPI to be used to award grant funds to charter schools for the reimbursements in accordance with new GS 115C-218.106.

Effective July 1, 2017.