Legislators left Raleigh on Wednesday after passing an appropriations bill and overriding a number of vetoes by Gov. Josh Stein.
New Appropriations Bill
Both houses this week adopted H 125, which provides various appropriations and includes some policy provisions. Such bills are often called “mini budgets” since they are separate from a comprehensive two-year budget bill. The Senate vote was 47 to 2 and the House vote was 91 to 23. The Governor is expected to sign the bill into law.
Here are some highlights from the bill:
- Funds enrollment growth at K-12 schools ($104.2 million) and community colleges ($94.9 million)
- Provides $823.6 million for infrastructure projects at state agencies and universities
- Provides $600 million for the Medicaid rebase for project changes in enrollment, service costs, and federal match rates
- Provides over $200 million for an aircraft manufacturing site in Guilford County (the recently announced JetZero project)
- Provides $6 million for new positions in the State Auditor’s office for the Division of Accountability, Value, and Efficiency
- Funds 40 new NC DMV driver license examiner positions in FY 2026 and an additional 21 in FY 2027
- Authorizes the Department of Information Technology to use up to $50 million for communications service providers to rebuild, repair, or replace broadband infrastructure damaged by Hurricane Helene
Although legislators have not yet reached agreement on a new two-year budget bill (S 257), some leaders this week signaled that discussions are ongoing and may produce an agreement later in the year. Another possibility is that legislators will consider other mini budget bills.
Veto Overrides
Some notable bills that are now law based on veto overrides this week by both chambers are:
- H 402 Limit rules with substantial financial costs
Also known as the REINS (Reign in State Government) Act, it requires greater legislative scrutiny for rules that impose certain financial costs on state businesses and residents
- H 549 Clarify powers of State Auditor
Gives the Auditor broader access to state agency databases, digital records, facilities, and property
- S 266 Power Bill Reduction Act
Eliminates the 2030 interim date for carbon reduction by certain public utilities (maintains the 2050 goal for carbon neutrality) and changes state law on cost recovery to finance utility construction projects
- S 416 Personal Privacy Protection Act
Bars state and local government agencies from collecting or disclosing nonprofit donor data and imposes penalties on officials who do so
Legislators may consider overrides of other bills that the Governor has vetoed when they return in August.
Some Policy Bills
A number of policy bills that may be considered later in the session include:
- H 315 Prohibit certain third-party litigation funding
Pending in Senate Rules Committee
- H 569 Would require PFAS chemical manufacturers to compensate public water systems for costs incurred due to PFAS
House passed; pending in Senate Agriculture, Energy, and Environment Committee
- H 934 AI Regulatory Reform Act
Pending in House Election Law Committee
Pending before a conference committee
- S 926 Regulatory Reform Act
Pending in Senate Rules Committee
Legislative Schedule
Under the adjournment resolution (S 772) passed this week, legislators may return to Raleigh about once a month. The next scheduled meeting date is August 26. The 2026 regular session is set for April 21.
