New NC budget keeps Khanmigo contract, but slashes funding from $10 million to $500,000

North Carolina's new budget retains funding for Khan Academy's AI platform Khanmigo but reduces the appropriation from $10 million to $500,000 over two years. The budget also includes broader AI initiatives for schools, such as policy development and educator training, while lawmakers previously faced criticism over the lack of competitive bidding and unproven educational value of Khanmigo.