North Carolina Senate Bill Would Direct $10M to Khan Academy AI Program
Despite founder admitting limited student engagement, NC Senate advances bill for $10M AI tutoring deal without competitive bidding.
RALEIGH, NORTH CAROLINA — A North Carolina Senate education bill would allocate more than $10 million in recurring state funding to Khan Academy for an AI tutoring program across the state, despite the nonprofit’s own founder admitting the technology has not met expectations.
The legislation would make Khan Academy the sole provider for participating school districts without requiring a competitive bidding process, according to Senate Bill 1006 scheduled for its first committee hearing Wednesday.
Founder Acknowledges Limited Impact
Khan Academy founder Sal Khan acknowledged in an April interview with Chalkbeat that the company’s AI tutoring tool, Khanmigo, had not achieved early expectations for classroom use. “For a lot of students, it was a non-event,” Khan said. “They just didn’t use it much.”
The bill’s primary sponsor, Senator Michael Lee, a Republican from New Hanover County, did not immediately respond to NC Newsline’s request for comment. Khan Academy also did not respond to requests for comment.
Program Structure and Funding
The omnibus education bill would establish a state AI Academic Support Program and provide funding to operate it. Under the proposal, participating districts would use state funds to purchase Khanmigo, which is designed to help teachers with lesson planning and answer student questions about coursework.
Funding would be distributed based on enrollment in grades 6 through 12. Districts that choose to participate would review the program annually before deciding whether to renew contracts.
The AI tool is intended to assist educators with instructional planning while providing students with additional academic support through automated responses to course-related questions.
Previous Legislative Efforts
This marks the second time Senate Republican leaders have proposed funding for the Khan Academy program during the current legislative session. A similar proposal, Senate Bill 619, filed in 2025, would have provided $15 million for Khanmigo.
The current bill represents a reduction in proposed funding compared to the earlier legislation, though it still commits the state to a substantial ongoing financial investment in the AI tutoring platform.
The legislation comes as education officials nationwide grapple with integrating artificial intelligence tools into classroom instruction while ensuring effective use of taxpayer funds for educational technology.
