Republicans to Propose $325 “Extra Credit” Grant to Parents

Funding intended to offset unexpected financial burden from school closures (child care, lost wages, supplemental materials, etc.)

Each household with a child would receive flat $325 payment

Total cost is $440 million of federal CARES Act funding

Raleigh, N.C. — When the North Carolina legislature reconvenes tomorrow, Republicans will propose a $325 “Extra Credit” grant to parents. The “Extra Credit” initiative uses $440 million in federal CARES Act funding to help offset unexpected costs of school closures to parents.

Sen. Joyce Krawiec (R-Forsyth) said, “Parents are facing an unexpected financial burden from school closures. Expenses like child care, supplemental learning materials, lost wages, and more are adding up. The Republican-controlled legislature will vote to provide those parents with some relief in the form of a $325 ‘Extra Credit’ grant.”

Sen. Danny Britt (R-Robeson) said, “As a father, with an incredible wife who is bearing the brunt of virtual schooling for our kids, I see firsthand the stress and added expenses brought about by school closures. I can’t imagine what single parents are going through. This ‘Extra Credit’ grant will help defray some expenses for parents who are nearing their wits’ end.”

Sen. Bob Steinburg (R-Chowan) said, “The ‘Extra Credit’ grant to each household with a child is designed to lend a hand to parents forced to deal with the unexpected costs and challenges of virtual learning. This is the right call and will put money directly in the hands of those who could use it.”

How the Extra Credit Grant Program Works

The legislature will vote to allocate $440 million in federal CARES Act funding to provide $325 to each household with at least one child. The Department of Revenue (DOR) will query its tax records to automatically generate a check to tax filers who claimed a child in 2019.

While the DOR search will capture the majority of eligible households and automatically issue checks, some will fall through the cracks. Parents who did not have any tax liability or were not required to file tax returns will still qualify for the program, but DOR will not automatically find them. Those parents will be able to apply for the $325 Extra Credit Grant to ensure they receive the funds.

The maximum income eligibility to receive the Extra Credit Grant will be identical to the federal threshold for the Child Tax Credit. There will be no minimum income requirement.

The federal government requires CARES Act funding to be spent by the end of the year, so the Extra Credit Grant initiative will require the state to issue checks by December 15.

The legislation will require a letter explaining the grant to accompany checks, but the letter will not be signed by or make any reference to any candidate on the ballot this year. The checks will be signed by the North Carolina Controller.