Senate committee substitute to the 3rd edition replaces the prior edition in its entirety with the following.

Makes conforming changes to the act’s long and short titles.

Section 1.

Extends the fiscal years when the Director of the Budget (Director) is required to make nonrecurring, budget-neutral adjustments under Section 6.9 to SL 2025-97 (Continuing Budget Operations) to now include reducing the 2026-27 net General Fund appropriation for agencies receiving State Fiscal Recovery Funds (SFRF) by an amount equal to the SFRF reclassified to that agency. Makes conforming changes to the Director’s obligation to ensure that the changes do not result in a change to the net General Fund appropriations.  

Section 2.

Authorizes reallocation of State Fiscal Recovery Funds (SFRF) appropriated by this act or any act of the General Assembly, including the eight listed, by the NC Pandemic Recovery Office (NCPRO) in consultation with the Director so long as: (1) there is a reasonable expectation that the funds will not be expended before the deadline established by applicable federal law or guidance and (2) the reallocation is made to support activities that previously received an appropriation from the SFRF, are authorized under this act or one of the eight acts specified, and adhere to Federal SFRF Expenditure Category 5 (Water, Sewer, or Broadband Infrastructure) guidance. Prohibits reallocated funds being used for any new purpose.

Provides for reallocation of funds by specified transfers. Emphasizes that those transfers cannot modify the purposes of the original appropriations. Authorizes the Director to reallocate any remaining funds after the reallocation process to the State Treasurer up to an amount equal to the remaining unreimbursed COVID-19-related expenses incurred by the North Carolina State Health Plan for Teachers and State Employees between March 3, 2021, and December 31, 2024, provided the reallocation is consistent with federal law and guidelines.

Requires the Office of State Budget and Management (OSBM) to submit a report to the specified NCGA division on the reallocations by January 15, 2027.

Section 3.

Appropriates any interest earned on the four listed funds to OSBM for operations pertaining to pandemic recovery, including use of such funds in accordance with the requirements of Section 6.9 of SL 2025-97.

Section 4.

Extends the expiration of the North Carolina Pandemic Recovery Office (NCPRO) set forth in Section 4.3 of SL 2020-4 (pertaining to NCPRO), as amended, from June 30, 2026, to May 1, 2027. Changes NCPRO’s monthly reporting requirement to a final report that is due no later than one week prior to the date NCPRO sunsets. Modifies the reporting matters, so that NCPRO is has to describe its activities during the 2026 calendar year (was, 2020) and has to detail any funding returned to the US Treasury.