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NC Budget Bust: Lawmakers Flee Raleigh as State Remains Only in Nation Without Spending Plan

North Carolina Republicans and Democrats remain at a standoff over income tax cuts, leaving teachers, state workers, and Medicaid funding in limbo until at least April.

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North Carolina remains the only state in the nation without a passed budget, and a resolution may not come until late spring at the earliest.

The state legislature convened Monday for its first session of 2026, but the meetings in both the House and Senate lasted less than two minutes, with only a handful of lawmakers present. House Speaker Destin Hall and Senate leader Phil Berger were not in attendance, having previously told colleagues there was no need to travel to Raleigh this week.

Another session is scheduled for February, but a spokeswoman for Berger confirmed to WUNC News that no Senate votes are expected until April when the short session begins.

Senate Stands Firm on Tax Cuts

The core of the stalemate is a disagreement over scheduled income tax cuts. North Carolina’s income tax rate is set to drop from 4.5% in 2025 to 4.25% in 2026, with a long-term path to as low as 2.49% if certain revenue targets are met.

Senate Republicans, led by Berger, are pushing to accelerate those cuts — a position rooted in a promise made directly to voters. “The Senate is really determined that we promised people a tax cut, and that tax cut ought to take place,” Berger said in a recent interview on PBS North Carolina’s State Lines.

House Republicans Urge Caution

House Republicans, joined by Democrats, have raised concerns that locking in deeper cuts could create budget deficits in coming years especially as federal Medicaid funding faces potential reductions under President Trump’s “One Big Beautiful Bill.” Speaker Hall has proposed raising the revenue “trigger” thresholds in state law to better reflect inflation before any rate reductions kick in.

Workers and Teachers Left Waiting

The budget impasse has real consequences for more than 70,000 state employees, including teachers, who have not received raises. North Carolina’s starting teacher salary currently sits at $41,000 — compared to $51,787 for an entry-level teacher just across the border in Greensville County, Virginia.

Rep. Rodney Pierce, D-Halifax, says constituents in his rural district are feeling the squeeze. “These are people who are dealing with cost-of-living increases but are not dealing with any cost-of-living increase in terms of raises,” he said. “And it particularly hurts in rural communities like ours, because we don’t have the economic resources to make up the difference.”

Pierce added: “We’re ready to work. But we don’t control the calendar.”

What Comes Next

While no budget votes are expected soon, legislative oversight committees will meet later this week to review Medicaid funding, proposed federal changes to the SNAP food stamp program, and potential property tax reforms.

Berger indicated a comprehensive deal remains unlikely before April. “I think comprehensive budget talk is not going to result in a comprehensive budget until maybe the short session,” he said. “We’ll see when we get back in April whether or not it does.”

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North Carolina Hemp Crackdown Awaits House Vote

THC fight pits youth access concerns against hemp businesses

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North Carolina lawmakers are weighing a hemp and kratom crackdown that could reshape a fast-growing market for gummies, seltzers, vapes and other intoxicating products sold at convenience stores, smoke shops and breweries.

House Bill 328 would prohibit any person from selling or delivering hemp-derived consumable products to anyone under 21, and would make underage possession illegal. The bill text says violations would be a Class 2 misdemeanor and could trigger civil penalties against retailers.

The measure targets the products themselves. The proposed conference bill defines prohibited finished hemp products as items with more than 0.4 milligrams of total tetrahydrocannabinol (THC) per retail container, or products containing synthetic or chemically converted cannabinoids. It would regulate kratom, ban synthetic kratom products and block kratom sales or possession for people under 21.

The Senate adopted the conference report 37-6 July 2, according to the North Carolina General Assembly. The bill has not yet reached Gov. Josh Stein because the House declined to take a final vote before lawmakers left Raleigh for a break. House Speaker Destin Hall said members needed more time to study technical language, WUNC reported, and the House is expected to return the week of July 27.

Supporters say North Carolina cannot leave intoxicating hemp products loosely regulated, especially when some are packaged and marketed in ways that appeal to minors. WRAL reported the state currently has no age restriction for buying intoxicating hemp-based products.

Hemp businesses warn the bill could wipe out much of the legal market. Axios reported Trophy Brewing may stop making THC seltzers, while WLOS reported Asheville retailers say the 0.4 milligram cap would effectively eliminate many products on shelves.

The fight now is whether lawmakers can protect minors without turning regulation into a de facto prohibition on North Carolina’s legal hemp industry.

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Republicans Hit Roy Cooper Over ICE Arrest

Immigration fight moves to center of North Carolina Senate race

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Republicans are sharpening an immigration attack against former North Carolina Gov. Roy Cooper as the state’s Senate race moves deeper into a public-safety fight.

The National Republican Senatorial Committee (NRSC) accused Cooper in a new attack of enabling “sanctuary policies” after federal officials said U.S. Immigration and Customs Enforcement (ICE) arrested Somsack Khamhaeng, a Laotian national with convictions in Cabarrus County. The Department of Homeland Security identified Khamhaeng as an immigrant in the country illegally who had been convicted of possession of a firearm by a felon and drug possession.

The NRSC press release pointed to other alleged North Carolina court entries, including drug paraphernalia offenses, a noise ordinance violation and a felony probation violation. NRSC Regional Press Secretary Nick Puglia said Khamhaeng “should have been arrested and immediately deported,” arguing Cooper’s record put North Carolinians at risk.

The attack revives a long-running dispute over how closely North Carolina law enforcement should cooperate with federal immigration authorities. Cooper vetoed legislation in 2022 that would have required sheriffs to make greater efforts to hold jail inmates wanted by ICE, calling the bill unconstitutional and accusing Republicans of using fear to divide voters.

Republican lawmakers later overrode Cooper’s veto of House Bill 10, requiring county sheriffs to cooperate with ICE in certain cases. This year, lawmakers enacted the North Carolina Border Protection Act, expanding cooperation requirements for state law enforcement agencies.

The fight now lands in the Senate race between Cooper and former Republican National Committee Chairman Michael Whatley, who are battling for the seat being vacated by Republican Sen. Thom Tillis.

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North Carolina Blocks Foreign Adversaries From Farmland

New law targets land near farms and military bases

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North Carolina has a new law aimed at keeping adversarial foreign interests away from farmland and military installations, turning national-security concerns into a real estate restriction across much of the state.

Gov. Josh Stein signed House Bill 133, the North Carolina Farmland and Military Protection Act, after lawmakers sent him the measure this month. The North Carolina General Assembly lists the bill as Session Law 2026-54, approved July 7 and chaptered July 8.

Under the law, a “prohibited foreign party” cannot purchase, acquire, lease or hold a direct interest in agricultural land or property within 50 miles of a military installation. The law says its purpose is to protect the state’s food supply and military sites from adversarial foreign government control.

The measure ties “adversarial foreign government” to countries or groups listed under federal International Traffic in Arms Regulations. It reaches certain entities or trusts organized under those governments, or substantially controlled by them.

Protected sites include Fort Bragg, Marine Corps Base Camp Lejeune, New River Marine Corps Air Station, Cherry Point Marine Corps Air Station, Seymour Johnson Air Force Base and North Carolina National Guard facilities.

Foreign parties that already hold covered land before the law takes effect may keep it, but they cannot acquire more and must register with the secretary of state. Buyers of covered land will have to sign an affidavit saying they are not prohibited foreign parties, while violations can trigger forced divestiture.

Most of the law takes effect April 1, 2027. The North Carolina Real Estate Commission and Department of Military and Veterans Affairs must publish a public map of protected areas by then.

Supporters frame the law as food security and military protection. Critics raised concerns about whether the 50-mile radius could discourage legitimate foreign investment, Carolina Journal reported.

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