Senate Bill 367 would appropriate $8 million in nonrecurring funds from North Carolina’s Education Lottery Fund for the 2025-2026 fiscal year to support capital improvement projects at four private historically Black colleges and universities: Bennett College, Johnson C. Smith University, Livingstone College, and Shaw University. The money would be administered by the Office of State Budget and Management and distributed among the schools based on each institution’s share of North Carolina resident undergraduate students who receive federal Pell Grants.
The bill is limited to capital project funding, meaning it is intended for new and ongoing campus improvement needs rather than general operating support. It takes effect July 1, 2025, and would direct state lottery-derived funds to private HBCUs in a formula tied to student need and enrollment, creating a targeted state investment in facilities and infrastructure at these institutions.
Impact
S367 would amend state spending priorities by directing a one-time appropriation from the Education Lottery Fund to the Office of State Budget and Management for allocation to four named private HBCUs. It does not create a new program or change eligibility rules for higher education generally, but it does establish a specific funding mechanism for capital improvements at Bennett College, Johnson C. Smith University, Livingstone College, and Shaw University. The practical effect would be to increase state support for campus facilities at these institutions and to tie distribution to North Carolina resident Pell Grant recipients.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed in a supportive, investment-oriented way, with a clear focus on strengthening historically Black colleges and universities. The sponsorship and purpose suggest favorable intent toward HBCU infrastructure needs and student access. No opposing viewpoints are documented in the supplied context.
Contention
The main potential point of contention is the use of Education Lottery Fund dollars for private institutions, which may raise questions about state spending priorities and whether lottery revenues should be used for capital projects at private HBCUs. Another possible issue is the bill’s narrow scope: it benefits only four named institutions and allocates funds based on Pell-eligible North Carolina undergraduates, which could prompt discussion about equity, formula design, and whether other colleges or universities should receive similar support. No specific objections are recorded in the provided transcripts or vote history.