June 17, 2026
Old North State Report – June 12, 2026
UPCOMING EVENTS
- June 22: Thinkers Lunch: A Look at NC’s Economic Development Efforts
- July 15: North Carolina Healthcare Association Summer Meeting
- October 15: 2026 NC Professional Lobbyists Association Annual Meeting
- October 22: Association of Executives of North Carolina 2026 Fall Conference
LEGISLATIVE NEWS
NEW LAW MAY DELAY PROPERTY TAX INCREASES
North Carolina lawmakers have approved Senate Bill 889 which will temporarily freeze property tax assessments in a small number of counties, delaying the impact of rising home values on tax bills. The legislation, which has already passed the Senate and is headed to the governor, would require counties that recently reappraised property values to continue using older valuations for one year, pushing any increases off until 2027.
The proposal is designed to give homeowners short-term relief as property values have surged in many areas, in some cases by 50% or more. Supporters say the pause will help residents, especially those on fixed incomes, avoid sudden spikes in their tax bills while lawmakers work on longer-term reforms.
The News and Observer (Vaughan, June 9, 2026)
NC BUDGET STILL UNFINISHED AS SESSION DEADLINE REMAINS UNCERTAIN
North Carolina lawmakers are facing increasing pressure to finalize a long-delayed state budget as the legislative session continues without a clear end date. Republican leaders had originally planned to release a full budget proposal by mid-June, but now say that timeline is uncertain, even as they continue working toward a possible agreement by the end of the month. The state has not passed a comprehensive new budget since 2023, largely due to ongoing disagreements within the legislature over tax cuts, spending levels, and how to allocate funding across key areas.
While leaders have said that progress has been made behind the scenes and that a general framework is in place, many important details have yet to be made public. Key questions remain about funding priorities, policy changes, and how the budget will address ongoing needs across the state. As negotiations stretch on, the lack of a finalized budget is creating uncertainty for agencies and programs that rely on state funding, while also increasing pressure on lawmakers to reach an agreement before the session drags on further or momentum slows.
Yahoo News (Kingdollar, June 9, 2026)
NEW BILL AIMS TO REGULATE AI USE IN NC PUBLIC SCHOOLS
In North Carolina, House Bill 301 combines two major policy initiatives: expanding AI education in K–12 schools and regulating minors’ use of social media. The AI portion seeks to prepare students for a future shaped by artificial intelligence by integrating AI literacy into school standards, training educators, and setting guidelines for AI tools. While this effort is widely viewed as beneficial, there are concerns that increased state oversight could create unnecessary bureaucracy and limit the flexibility schools need to keep up with rapidly evolving technology.
The bill’s social media provisions, however, are more controversial. They would impose strict rules such as age verification, parental consent, and penalties for platforms, raising concerns about privacy, government overreach, and effectiveness. Critics argue that these measures could expand state control over online activity and require data collection that may be difficult to safeguard, while also being easy for tech-savvy minors to bypass. Overall, the bill blends a broadly supported education initiative with a more complex and debated regulatory approach, prompting concerns that these distinct issues should be addressed separately.
Carolina Journal (King, June 3, 2026)
NC BILL AIMS TO EXPAND HOUSING OPTIONS AND EASE ZONING RESTRICTIONS
North Carolina lawmakers are advancing Senate Bill 445 which would make it easier to build more housing by limiting certain local zoning restrictions, particularly in larger cities. The bill would require cities with at least 50,000 residents to allow accessory dwelling units (ADUs)—often called “granny flats”—on single-family lots, giving homeowners more flexibility to add smaller living spaces on their property. Supporters say this could help address the state’s growing housing shortage by increasing supply and creating more affordable living options for families, renters, and aging residents. [carolinajournal.com]
The legislation also includes measures to encourage redevelopment in areas currently zoned for commercial or industrial use. In qualifying cities and counties, developers would be allowed to build residential projects on this land without needing special approval, which could open up new areas for housing near jobs and infrastructure. While supporters argue the changes will reduce barriers and speed up development, some lawmakers have raised concerns about limiting local control over zoning decisions and building standards.
Carolina Journal (Pomeranz, June 9, 2026)
NC LAWMAKERS MOVE TO RESTRICT FOREIGN LAND OWNERSHIP
North Carolina lawmakers are moving forward with Senate Bill 394 which would restrict foreign adversaries from owning or leasing certain land in the state. The proposal would ban companies tied to countries identified as national security risks from purchasing agricultural land or property within a 50‑mile radius of military installations. Supporters say the measure is intended to protect both food security and military operations, arguing that land near bases could be used for surveillance or other security threats.
The bill has gained support in committee and reflects a broader national trend of states tightening rules on foreign land ownership. However, some lawmakers have raised concerns about the scope of the restrictions, particularly the 50‑mile radius, which they argue could limit economic development and create confusion for land use. Questions have also been raised about enforcement and whether state agencies will have the resources needed to track and monitor ownership under the new rules.
Carolina Journal (Zehnder, June 9, 2026)
NORTH CAROLINA ADVANCES LANDMARK BAN ON THIRD-PARTY LAWSUIT FUNDING
North Carolina lawmakers have passed House Bill 315, which would prohibit third-party investors from funding lawsuits in exchange for a share of any settlement or judgment. The bill, strongly backed by the NC Chamber, passed overwhelmingly in both legislative chambers and now awaits the governor’s decision.
Supporters argue the measure would protect businesses and the legal system by reducing investor-driven lawsuits and preventing outside parties—potentially including foreign entities—from accessing sensitive corporate information. Critics, however, warn that banning litigation financing could limit access to justice for individuals or companies lacking resources and further concentrate financial power in the hands of attorneys.
The bill does include exceptions, allowing funding from nonprofits, legal aid groups, insurance companies, and family members, while preserving contingency-fee arrangements between lawyers and clients. If enacted, North Carolina would become the first state to broadly ban this type of litigation funding.
LATEST POLLS
RealClear Polling: North Carolina Senate- Whatley v. Cooper
WHAT WE’RE LISTENING TO
Tying It Together with Tim Boyum
