July 13, 2026
Old North State Report – July 10, 2026
UPCOMING EVENTS
- October 15, 2026: NC Professional Lobbyists Association Annual Meeting
- October 22, 2026: Association of Executives of North Carolina Fall Conference
- December 2, 2026: NC Chamber - Women Lead NC
- January 12, 2027: NC Chamber - Economic Forecast Forum
LEGISLATIVE NEWS
STEIN SIGNS BUDGET, PRAISES BIPARTISANSHIP
Governor Josh Stein signed North Carolina’s $34.4 billion budget (Senate Bill 257) into law last week, praising the bipartisan spending plan for delivering significant investments in teacher, law enforcement and corrections pay, fully funding Medicaid with a $1 billion appropriation, providing more than $700 million for Hurricane Helene recovery, and increasing support for community colleges, the DMV, childcare and food assistance programs. Calling these provisions “real wins,” Stein said the budget “gets a lot of things right” and added, “These are real wins, worthy of celebration, and worthy of my signature.”
Key Budget Highlights:
- Teacher pay raises: The budget provides the largest starting teacher pay increase in nearly 50 years and the largest overall teacher raise in about 15 years. Average teacher raises are about 8%, with an increased starting salary.
- Public safety raises: Law enforcement officers, correctional officers, and other public safety personnel receive significant salary increases, many in double digits.
- Medicaid funding: More than $1 billion is included to fully fund Medicaid and support growing enrollment and health-care costs.
- Hurricane Helene recovery: The budget allocates another $700 million for western North Carolina disaster recovery efforts.
- Other investments: Funding is included for community colleges, childcare, DMV improvements, cybersecurity, summer food programs, clean water initiatives, and a new veterans' home.
Stein said compromise was necessary and welcomed the inclusion of several of his administration’s priorities. “Having just celebrated America 250 this weekend, we remember that our democracy has always run on compromise for the common good,” he said. The governor noted that while neither side got everything it wanted, the budget reflects progress achieved through negotiation. After speaking with House Speaker Destin Hall before signing the measure, Stein emphasized that “that’s what happens in a democracy — you have to make compromises, but if you’re committed to the common good, you can make progress, and that’s what this budget represents.”
Stein praised legislative leaders and budget writers for engaging with his administration during negotiations, saying the “constructive dialogue” helped improve the final product and expressing hope that collaboration continues in future budget discussions. Looking ahead, Stein said he remains committed to working with lawmakers to avoid future budget stalemates, stating, “I’m going to do everything in my power to work with them in a collaborative fashion, to make sure that we put forward legislation that helps the state and advances us for future success.”
Insider / State Affairs (Bajpai) 7/7/26
CBS 17 (Sockol, Bentley & Danesh)
The Assembly (Anderson) 7/7/26
GOVERNOR STEIN SIGNS FOUR BIPARTISAN BILLS, VETOES CAMPING BAN
Governor Josh Stein signed four bipartisan bills into law on July 6, 2026, reflecting cooperation between Democratic and Republican lawmakers on several public policy issues facing North Carolina. The legislation addresses criminal justice reform, gang violence prevention, mental health treatment, housing affordability, and government operations. Stein stated that the measures would help make North Carolina safer, improve public services, and address challenges affecting communities across the state. The bills received broad legislative support and were designed to respond to concerns raised by high-profile incidents as well as long-term policy needs.
House Bill 1104 – Mental Health Evaluation and Involuntary Commitment Reform
House Bill 1104 changes how North Carolina handles criminal defendants with serious mental health concerns. The law moves certain court-ordered psychiatric evaluations from hospital emergency departments to county jails, addressing concerns from hospitals about safety and overcrowding. The legislation also expands options for outpatient treatment, allowing some individuals under involuntary commitment orders to receive care outside of psychiatric facilities. Lawmakers developed the bill following concerns raised by the case of Iryna Zarutska, a Charlotte woman who was killed by a suspect with a documented history of mental illness, and the law is considered an update to the previously enacted “Iryna’s Law.”
House Bill 1173 – “Jaleeyah’s Law”
House Bill 1173, known as “Jaleeyah’s Law,” strengthens North Carolina’s efforts to combat gang-related crime. The law increases penalties for crimes committed by gang members and gang leaders, broadens the legal definitions of gangs and gang activity, and lowers the threshold for identifying gang membership. Supporters argue that these changes provide prosecutors and law enforcement with stronger tools to investigate and prosecute organized criminal activity. The bill was named in memory of 13-year-old Jaleeyah Tune of Goldsboro, who was killed in what lawmakers described as a gang-related shooting.
House Bill 369 - Local Parking Requirement Reform
This legislation reforms local parking regulations by giving local governments greater flexibility in determining minimum parking requirements for new developments. Supporters believe that reducing excessive parking mandates can lower construction costs, free up land for housing, and encourage residential development in growing communities. As a result, the law is intended to help address North Carolina’s housing affordability challenges while allowing local governments to tailor parking policies to their specific needs.
Senate Bill 1041 - State Agency Operations and Technical Corrections
The state agency operations bill makes a series of technical, administrative, and procedural updates affecting North Carolina government agencies. While the changes are not aimed at a single policy issue, they are intended to improve government efficiency, streamline agency functions, address operational challenges, and help state agencies better deliver public services. Lawmakers characterized the measure as a housekeeping bill that modernizes various state government processes and supports more effective agency administration.
On July 8, Stein vetoed House Bill 437. The bill would have prohibited homeless camping and sleeping on public property statewide and allowed private citizens to sue local governments that failed to enforce the ban.
Key points from the bill:
- Cities and counties would have been responsible for enforcing the camping ban.
- The bill did not provide funding to help address homelessness or cover enforcement costs.
- Local governments could create designated camping areas, but those sites would need to be located away from businesses and residential neighborhoods. Critics argued this could isolate homeless individuals and impose an unfunded mandate on local governments.
- The legislation also would have established drug-free zones around homeless shelters.
In explaining his veto, Stein said the bill would make it harder to help people experiencing homelessness, create significant unfunded costs for local governments, and could undermine efforts to treat addiction by threatening liability for people and organizations providing assistance.
The veto is not necessarily final. The Republican-controlled legislature can still override it with a three-fifths vote. In the House, Republicans would be only one vote short of the number needed if all members are present, and several Democrats previously voted for the bill, making an override possible.
WUNC News (Dinka) July 8, 2026
REHAB CARE GETS CON EXEMPTION
North Carolina's 2026 state budget includes a provision that repeals Certificate of Need (CON) requirements for inpatient rehabilitation services, facilities, and beds beginning Oct. 1, 2026. The change is designed to make it easier for providers to expand rehabilitation care without obtaining state approval, a process that has been required under North Carolina's CON law since the 1970s.
The repeal is more limited than Senate Bill 370, a separate proposal that would have fully eliminated North Carolina's CON law. Senator Benton Sawrey (R-Johnston) said lawmakers were unable to reach agreement on broad repeal but pursued targeted reforms where access concerns had been identified. He told Carolina Journal, “If we can’t get broad reform, then I’m going to work on finding targeted areas so we can make incremental progress.”
Sawrey also pointed to prior CON reforms enacted as part of the state's Medicaid expansion agreement, which removed CON requirements for certain ambulatory surgery centers and MRI machines. He said he expects those changes to produce results as new facilities and equipment come online and hopes they will demonstrate to lawmakers and the public that CON reform can have “a stabilizing effect on prices and access.”
Supporters of the repeal argue that CON laws restrict competition, limit healthcare capacity, and contribute to higher costs. Opponents, including the North Carolina Healthcare Association, expressed concern that removing CON requirements could undermine a system they say helps distribute healthcare resources efficiently, prevents unnecessary duplication of services, and supports access to care in rural and underserved communities.
The repeal represents another incremental step toward reducing healthcare regulations in North Carolina while leaving the broader CON framework largely in place.
The Carolina Journal (Tierney) 7/6/26
LATEST POLLS
270 to Win: North Carolina Senate
RealClear Polling: North Carolina Senate- Whatley v. Cooper
WHAT WE’RE LISTENING TO
Tying It Together with Tim Boyum
