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Old North State Report
Aug. 1, 2025
Old North State Report - August 1, 2025
UPCOMING EVENTS
August 25, 2025
Thinkers Lunch: A Look Ahead to the 2026 Elections
October 9-10, 2025
Association of Executives of North Carolina (AENC) Fall Conference
November 13, 2025
January 12, 2026
LEGISLATIVE NEWS
GENERAL ASSEMBLY OVERRIDES STEIN VETOES
On Tuesday, the North Carolina General Assembly overrode eight of Governor Josh Stein’s 14 vetoes in a single day, with six more still awaiting action.
The term “working supermajority” has been used to describe the Republican advantage in the House, where they hold 71 seats and need 72 votes to override a veto. That threshold has been met with the help of a few Democrats, including Representatives Carla Cunningham (Mecklenburg), Nasif Majeed (Mecklenburg), Shelly Willingham (Edgecombe), and Cecil Brockman (Guilford), who crossed party lines on key votes.
In the Senate, Republicans hold a supermajority (30-20) that was utilized to override eight bills. The bills overridden are:
|
Bill # |
Title - Summary |
House Votes |
Key Votes/ Notes |
Senate Votes |
|
Firearm Law Revisions - Permits guns in private schools and religious services; increases penalties for threats against officials. |
72–48 |
Representative Willingham cast the deciding vote. |
29–19 |
|
|
Criminal Illegal Alien Enforcement Act - Requires jails to notify ICE and hold detainees; adds immigration checks to pretrial release. |
72–48 |
Representative Cunningham was the deciding vote. |
30–19 |
|
|
Limit Rules with Substantial Financial Costs - Limits regulatory power of governor-appointed agencies. |
73–47 |
Representatives Cunningham and Willingham were key votes. |
30–19 |
|
|
Clarify Powers of State Auditor - Strengthens state auditor’s authority and debt collection powers. |
72–48 |
Representative Willingham was the deciding vote. |
30–19 |
|
|
Prevent Sexual Exploitation/Women and Minors - Originally a revenge porn bill; now includes provisions criticized as anti-transgender. |
72–48 |
Representative Majeed cast the deciding vote. |
30–19 |
|
|
Power Bill Reduction Act - Removes carbon emissions reduction goal; retains 2050 neutrality target; alters utility billing. |
74–46 |
Representatives Cunningham, Majeed, and Willingham were pivotal. |
30–18 |
|
|
Personal Privacy Protection Act - Protects nonprofit donor and volunteer privacy. |
74–46 |
Representatives Brockman, Cunningham, and Willingham were deciding votes. |
30–19 |
|
|
Charter School Changes - Shifts charter school oversight from the State Board of Education to a new review board. |
74–46 |
Representatives Brockman, Cunningham and Willingham supported it. |
30–19 |
Five vetoed bills remain to see House action. These include:
| Bill # | Title - Summary | Senate Votes |
| Equality in State Agencies/Prohibition on DEI - Bans state/local DEI programs, including those tied to federal funding. Replaces criminal penalties with civil fines. Cultural observances still allowed. |
|
|
| Freedom to Carry NC – Allows permitless concealed carry; retains permit option for reciprocity. Increases penalties for firearm-related crimes and supports benefits for law enforcement families 2. | 30–19 | |
| North Carolina Border Protection Act – Requires state cooperation with ICE, audits public benefits for unauthorized use, and prohibits sanctuary policies in UNC schools. | 30–19 | |
| Eliminating DEI in Public Education – Prohibits public schools from promoting “divisive concepts” or maintaining DEI offices/staff. Allows protected speech and historical instruction. | 30–19 | |
|
Eliminating DEI in Higher Education – Prohibits UNC and community colleges from promoting DEI or maintaining related offices. Allows academic freedom and federally required policies. |
30–19 |
All of these bills have been placed on the House calendar for August 26.
A sixth vetoed bill, House Bill 96, which would expedite the removal of unauthorized occupants, often referred to as squatters, was vetoed by Stein due to a controversial provision that would have limited local governments’ ability to regulate pet stores. Stein stated that he supported the squatter-related measures but could not endorse the bill with the pet store language included. In a strategic move, lawmakers transferred the squatter-related content to Senate Bill 55, which originally focused on regulating student cell phone use during school hours. Both the House and Senate approved the revised Senate Bill 55 on Tuesday and sent the bill to Stein’s desk, effectively bypassing the governor’s earlier veto of House Bill 96.
House Speaker Destin Hall expressed optimism about resolving the remaining veto overrides either later this year or during the upcoming short session.
Center Square (Wooten) 7/29/25
Carolina Journal (Carswell) 7/29/25
News & Observer (Roman) 7/29/25
Carolina Public Press (Thomae) 7/29/25
LEGISLATURE SENDS MINI BUDGET TO GOVERNOR
On Wednesday, North Carolina lawmakers passed a "mini budget" and sent it to Governor Josh Stein for approval, aiming to fund essential state operations while broader budget negotiations remain stalled. House Bill 125 ensures continued funding for public schools, universities, and the State Health Plan, which are all facing financial pressures as the new fiscal year begins without a full budget in place.
The bill passed with strong bipartisan support—91 to 23 in the House and 47 to 2 in the Senate. It addresses urgent needs like adjusting school funding based on updated enrollment numbers, which is crucial to prevent growing schools from operating under outdated budgets and to avoid overfunding shrinking ones. The University of North Carolina system had already begun reallocating funds internally but awaited legislative action.
The mini budget also fully funds the state pension plan and allocates an additional $100 million to the State Health Plan, which is currently facing a $500 million shortfall. This funding is intended to help minimize upcoming premium increases for state employees. Notably, the plan introduces a new structure where lower-paid employees will pay less for health insurance than higher-paid colleagues—a significant shift from past policy.
However, the mini budget does not include major initiatives such as tax cuts or raises for teachers and state workers, which remain points of contention between House and Senate Republicans. The Senate favors smaller raises to allow for larger tax cuts, while the House supports more substantial raises with more modest tax reductions.
Also included in the mini budget is the DAVE Act—now dubbed the "DOGE-style" plan—which creates the Division of Accountability, Value, and Efficiency. This initiative is designed to streamline government operations and improve fiscal oversight.
The General Assembly adjourned on July 31 and will reconvene once a month for the rest of the year, leaving broader budget issues unresolved for now.
WHAT WE’RE LISTENING TO
- Under the Dome Podcast
- Do Politics Better Podcast
- WUNC Politics Podcast
- Carolina Newsmakers Podcast
- NC Capitol Wrap Podcast
WHAT WE’RE READING
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These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel.