HB 1076, titled the Innovations Waitlist Reduction Act, combines two major policy changes. First, it directs the Department of Health and Human Services to expand the North Carolina Innovations waiver by 6,635 slots, with the additional capacity to become available on or after July 1, 2026. The bill also appropriates $240 million in recurring General Fund dollars beginning in fiscal year 2026-2027 to support those new waiver slots. This portion is aimed at reducing the waitlist for services under the Innovations waiver, which serves individuals with intellectual and developmental disabilities who need home- and community-based supports.
Second, the bill revises the Opportunity Scholarship Program to narrow eligibility and redirect funding toward lower-income families. It changes the income threshold for eligibility to households at or below 200% of the federal free or reduced-price lunch level, and it restructures scholarship award amounts so that students from the lowest-income households receive the highest awards. The bill also preserves priority for returning scholarship recipients and adjusts the long-term appropriations schedule for the Opportunity Scholarship Grant Fund Reserve, while reducing the recurring funds otherwise slated for the program by $240 million in 2027-2028.
The bill would significantly affect state spending and administration. It increases recurring Medicaid-related waiver funding through DHB for disability services, while simultaneously reducing future recurring appropriations for private school scholarships. It would amend multiple sections of Chapter 115C governing opportunity scholarships, changing who qualifies, how awards are prioritized, and how much money is available over time. In practical terms, the bill shifts state resources away from broader voucher eligibility and toward both disability services and more targeted school-choice assistance for families with greater financial need.
The general sentiment reflected in the bill text is supportive of both expanding services for people on the Innovations waiver waitlist and focusing scholarship aid on families with the greatest need. Because there were no committee transcripts or recorded votes provided, there is no direct evidence of debate, amendments, or formal opposition in the available materials. The bill’s framing suggests a policy tradeoff: expanding support for disability services while tightening and reducing funding for opportunity scholarships.
The main point of contention is likely the scholarship portion. Supporters may favor the income cap and reduced funding as a way to concentrate aid on lower-income students, while opponents may object to the narrower eligibility rules and the reduction in overall scholarship funding. Another likely area of debate is the fiscal impact of the Innovations waiver expansion, given the large recurring appropriation required to add thousands of slots.
HB 1076 would amend North Carolina law governing both the Innovations waiver and the Opportunity Scholarship Program. It would require DHB to expand the Innovations waiver by 6,635 slots and appropriate $240 million in recurring General Fund money to support those services. It would also revise G.S. 115C-562.1, G.S. 115C-562.2, and G.S. 115C-562.8 to tighten scholarship eligibility, alter award tiers, and reduce future recurring appropriations for the Opportunity Scholarship Grant Fund Reserve by $240 million in 2027-2028, with the revised scholarship rules applying beginning in the 2027-2028 school year.
The bill appears generally pro-expansion for disability services and pro-targeting for education aid. Its stated purpose is to reduce the Innovations waiver waitlist and to focus opportunity scholarships on families with the greatest need, suggesting a policy rationale centered on access and prioritization. No committee discussion or vote record was provided, so there is no documented formal sentiment beyond the bill’s own structure and findings.
The most likely controversy is over the Opportunity Scholarship changes, especially the tighter income eligibility cap and the reduction in recurring funding. Supporters would likely argue that the bill better targets limited scholarship dollars to lower-income families, while critics may view it as restricting school-choice access and reducing support for middle-income households. The other potential area of concern is the substantial recurring cost of expanding Innovations waiver slots, though that portion may draw broader support because it addresses a waitlist for disability services.