Legislators left Raleigh on Thursday after a flurry of activity and adoption of many bills. They did not reach agreement on a new two-year budget (S 257) and may continue work on it and other spending bills when they return later this summer. Under the state’s budget continuation law (GS 143C-5-4), operation of state government will continue in fiscal year 2026 (which begins July 1) at the spending levels of fiscal year 2025.
New Helene Recovery Bill
Legislators on Thursday agreed on a Helene recovery bill—the Disaster Recovery Act of 2025 Part II (H 1012). The bill brings total state appropriations for Helene recovery to $2.1 billion. The Governor is expected to sign the bill into law.
https://webservices.ncleg.gov/ViewBillDocument/2025/7172/0/H1012-PCCS10558-NB-6
The bill sets aside $700 million in the Hurricane Helene Relief Fund and appropriates $500 million from that fund. It also reallocates nearly $300 million within the Department of Transportation budget for recovery needs.
Its provisions include:
- $70 million for local government capital repairs
- $51.5 million in additional funding for the local government cash-flow loan program
- $5 million to support tourism efforts
- $25 million to help farmers in the impacted area with farm infrastructure losses
- $75 million for construction and reimbursement of privately-owned roads and bridges
- $64.3 million for the repair and reconstruction of damaged schools
- $18 million for fire stations and rescue squads in Western North Carolina
- $15 million for the North Carolina Forest Service for wildfire assets and preparedness
- $12.25 million through the Parks and Recreation Trust Fund to repair damaged parks in impacted areas
- $15 million to the Selectsite fund to support economic development in the impacted area
- Extends the Hurricane Helene State of Emergency to October 1
Budget Bill
Legislators thus far have been unable to reach agreement on the budget bill (S 257). The House and Senate budget bills passed early in the session differ on a number of spending items and leaders of both chambers disagree on the timing of additional personal income tax rate reductions. Although legislators this week considered a number of bills that appropriated funds for certain purposes, for example, enrollment growth in schools, none of these bills cleared both chambers.
Other Notable Bills
Legislators have recently passed a number of impactful bills and sent them to the Governor. They include:
- 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
https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S266v6.pdf
- H 850 Interbasin Transfer Moratorium/Study
Directs the UNC-Chapel Hill Collaboratory to study water interbasin transfers with a report to the 2027 General Assembly session and places a moratorium until March 1, 2027 on such transfers of more than 15 million gallons per day
https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H850v3.pdf
Authorizes Mecklenburg County to hold a referendum on increasing the local sales tax for transportation needs
https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H948v5.pdf
- H 959 Various Education Changes
Requires local boards of education to adopt policies on student access to the Internet on devices and that school curricula must include instruction on social media and its impact on student health
https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H959v4.pdf
- S 118 Military and veterans support
Assists military families with public school enrollment, facilitates UNC admissions for military and veterans, and authorizes remote driver’s license renewals for active duty military and their families
https://webservices.ncleg.gov/ViewBillDocument/2025/7089/0/S118-PCCS45425-CJ-1
Some Pending Bills
A number of policy bills remain eligible for consideration when legislators return to Raleigh. They include:
- H 315 Prohibit certain third-party litigation funding
Pending in Senate Rules Committee
https://webservices.ncleg.gov/ViewBillDocument/2025/6607/0/H315-PCS40593-TG-34
- 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
https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H569v4.pdf
- H 934 AI Regulatory Reform Act
Pending in House Election Law Committee
https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H934v2.pdf
Pending before a conference committee
https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S401v3.pdf
Legislators sometimes incorporate such topics in the budget bill and therefore, the content of these bills could move forward in S 257 if it is adopted.
Cabinet Confirmations
The Senate on Thursday confirmed three of Gov. Stein’s Cabinet nominees. They are Leslie Dismukes at Adult Correction, Jocelyn Mitnaul Mallette at Military and Veterans Affairs, and Reid Wilson at Environmental Quality. All eleven of Stein’s nominees were confirmed during this session.
