North Carolina’s HBCUs could receive a major financial boost thanks to a new budget proposal introduced by Senate Republicans. The plan, released Monday evening, would significantly increase the amount of sports betting tax revenue allocated to athletic departments at UNC System schools — including several HBCUs.
Currently, 13 UNC System schools, including five HBCUs, receive $300,000 annually from the state’s legal sports wagering proceeds, along with a portion of remaining funds after initial distributions. Under the proposed budget, that amount would increase, and Division I HBCUs like Winston-Salem State University, Fayetteville State University, Elizabeth City State University, and North Carolina Central University would see notable gains.
The new proposal raises the state’s sports betting tax rate from 18% to 36%, placing North Carolina among the nation’s highest. That spike is expected to result in tens of millions of new dollars flowing into college athletic programs — and for HBCUs, it marks a rare opportunity for long-term investment.
Under the proposed changes:
– WSSU, ECSU, FSU, and UNC Pembroke would each receive $500,000 upfront, with projected total payouts of $3.1 million in FY 2026 and $4.1 million in FY 2027.
– HBCUs sNorth Carolina A&T and NC Central, along with UNC Greensboro, UNC Wilmington, UNC Asheville, and Western Carolina, would each receive $1 million upfront eventually totaling $3.6 million and $4.6 million, respectively.
Senate leader Phil Berger said the expanded funding reflects a desire to ensure all campuses benefit from the success of the state’s new sports wagering system. That sentiment comes at a critical time as athletic departments — especially those at HBCUs — face mounting financial pressure amid broader changes in college athletics, including potential revenue sharing with athletes.
As part of the budget deal, UNC-Chapel Hill and NC State — which were previously excluded from sports betting revenue distributions — would now be included but required to schedule games against all UNC System schools, including the HBCUs. Both men’s and women’s basketball teams would have to play at least three games (regular season or exhibition) against each Division II UNC System school and two against each Division I school by the 2039–40 season.
The proposal ties competitive inclusion with financial investment — a strategy that could raise the profile of HBCU athletic programs while bringing in much-needed resources. With Senate Republicans holding a firm majority, the budget is expected to pass this week.