June 29, 2026
Old North State Report – June 26, 2026
UPCOMING EVENTS
- July 15, 2026: North Carolina Healthcare Association Summer Meeting
- 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
NC BUDGET TALKS DRAG ON, LIKELY MISSING FISCAL YEAR DEADLINE
North Carolina lawmakers are still working to finalize a new state budget, but it now appears unlikely they will meet the July 1, 2026, deadline. Despite weeks of negotiations and earlier optimism, key disagreements remain between the Republican-led House and Senate over how to fund major projects like a proposed Major League Baseball stadium, a children’s hospital in Wake County, and other statewide initiatives. These unresolved issues have slowed progress, and even if leaders reach an agreement soon, it will still take time to draft, approve, and sign the final budget into law.
If the deadline is missed, North Carolina will continue operating under its current budget, meaning government services will not shut down. However, the delay will prevent new spending from taking effect, including pay raises for state employees and funding for new programs and infrastructure.
WRAL News (Murphy) June 25, 2026
GOVERNOR’S VETOES REVERSED ON KEY BILLS
On Wednesday, North Carolina’s legislature voted to override Governor Josh Stein’s vetoes on three major bills, turning them into law:
- Senate Bill 227 applies to K‑12 schools and states that public school units may not promote certain concepts lawmakers say conflict with the principle of equality.
- Senate Bill 558 extends similar restrictions to public colleges and universities, barring them from promoting concepts legislators view as inconsistent with equal rights.
- Senate Bill 153, the North Carolina Border Protection Act, requires state law enforcement agencies to extend agreements with ICE and to determine the immigration status of anyone in custody.
The legislature advanced a fourth DEI‑related bill to the Senate for an expected override:
- House Bill 171 eliminates diversity, equity, and inclusion initiatives within state and local government agencies and clarifies penalties tied to state and local budget laws.
A separate bill, Senate Bill 50, that would have made North Carolina a permitless concealed‑carry state did not receive an override attempt because too many Republicans were absent during the original vote, leaving insufficient support for the required threshold. Under state rules, only one override attempt is allowed and must begin in the chamber where the bill originated.
The Center Square (Wooten) June 24, 2026
NORTH CAROLINA LAWMAKERS CLASH OVER TEEN SOCIAL MEDIA LIMITS AND HOUSING RULES
North Carolina lawmakers are in disagreement over two separate pieces of legislation, slowing their progress. The first bill, House Bill 301, focuses on restricting social media use among teenagers. It would ban children under 14 from having accounts and require parental permission for 14- and 15-year-olds. However, the House rejected changes made by the Senate, mainly due to concerns about how age verification and enforcement would work.
At the same time, lawmakers are also divided over a housing-related bill involving “granny flats” (small secondary homes on residential property). The Senate did not agree with changes made by the House that would loosen development rules, leading to further disagreements.
Because both chambers rejected each other’s revisions, the bills will now move to negotiation, where lawmakers will try to reach a compromise. Despite the disagreements, there is still general support for protecting children online and addressing housing issues, but the details of how to implement these policies remain unresolved.
WRAL News (Yaffa) June 23, 2026
SENATE PASSES NC FARMLAND AND MILITARY PROTECTION BILL
The North Carolina Senate has advanced the NC Farmland and Military Protection Act (House Bill 133), a bill aimed at blocking governments and entities tied to foreign adversaries—specifically China, Russia, Iran, and North Korea—from purchasing farmland or acquiring property within 25 miles of any military installation in the state. Supporters of the legislation argue that it is a necessary safeguard for national security, pointing to concerns about espionage, surveillance, and foreign influence near strategically important military sites. They frame the bill as a proactive measure to protect both the state’s agricultural resources and the operational security of major military bases.
The bill passed with bipartisan support, though not without debate. Some Democratic lawmakers questioned whether the legislation might unintentionally affect immigrants, dual citizens, or individuals with family or business ties to the listed countries. In response, Republican sponsors emphasized that the bill includes explicit exemptions for U.S. citizens and lawful permanent residents, even if they originate from or have connections to an adversary nation. They argued that the restrictions apply only to foreign governments, state‑controlled entities, and organizations under their influence—not to individuals who have legal status in the United States.
The Senate moved the bill forward, reflecting a broader national trend of states seeking to limit foreign ownership of agricultural land and property near sensitive infrastructure. With Senate approval secured, the legislation now heads to the North Carolina House, where it will undergo further debate and possible amendments before it can become law.
The Carolina Journal (Zehnder) June 24, 2026
NORTH CAROLINA PROPERTY TAX BILL FACES SETBACK IN SENATE
A North Carolina proposal to adjust a property tax freeze has stalled in the state Senate. The bill at the center of the debate, Senate Bill 474 , was designed to change an earlier law, Senate Bill 889 , which placed a temporary moratorium on property tax revaluations in several counties.
The original law, Senate Bill 889, froze property tax increases in counties including Anson, Bladen, Buncombe, Davidson, Guilford, Harnett, Onslow, Pender, and Scotland to help homeowners dealing with rising taxes. The newer bill, Senate Bill 474, would remove Buncombe, Harnett, and Scotland from that list while adding Chowan and Pamlico counties instead.
Supporters say the moratorium provides relief to residents struggling to keep up with property taxes. However, critics—especially local leaders in Buncombe County—argue the freeze could reduce important revenue, making it harder to fund services and recover from events like Hurricane Helene.
Although Governor Josh Stein supported updating the law and urged passage of Senate Bill 474, the Senate rejected the House’s version of the bill due to concerns about its constitutionality and the need for further changes. Because the House and Senate have not agreed on the same version, the proposal cannot become law yet.
NC Newsline (Childress) June 23, 2026
GOVERNOR STEIN SIGNS NATION’S FIRST BAN ON LITIGATION FUNDING
North Carolina has become the first state in the country to outlaw third‑party litigation investment, a rapidly growing practice in which outside financiers—often hedge funds, private equity firms, or foreign‑backed entities—pay for someone’s lawsuit in exchange for a share of whatever money the case might produce. Governor Josh Stein signed House Bill 315 after it sailed through the legislature with near‑unanimous support, reflecting a rare bipartisan consensus on a legal and economic issue.
The new law makes it illegal for any person or company to fund civil litigation in the state if their financial return depends on the outcome of the case. Any such agreements are automatically void, and the attorney general can take civil action to stop violations. Courts may impose penalties of up to $50,000 per violation, and individuals harmed by these arrangements can sue for damages.
Supporters argue the ban protects the integrity of North Carolina’s civil justice system by preventing outside investors from turning lawsuits into speculative investment vehicles. Business groups, especially the North Carolina Chamber, strongly backed the measure, saying it will reduce opportunities for legal system abuse and help maintain a stable, business‑friendly environment. Policy analysts note that the move fits with the legislature’s long‑standing focus on shaping a predictable legal climate attractive to employers.
The law does not interfere with traditional contingency‑fee arrangements between attorneys and clients, nor does it block attorney‑advanced costs, insurance defense obligations, nonprofit legal aid, certain direct loans, or family and personal support that is not used to pay litigation expenses. In effect, the state is drawing a bright line between conventional legal financing and outside investment schemes tied directly to the potential payout of a lawsuit.
The Carolina Journal (Pomeranz) June 23, 2026
STANLEY CUP AT THE NORTH CAROLINA GENERAL ASSEMBLY
The Carolina Hurricanes’ Stanley Cup victory was celebrated at the North Carolina General Assembly, where lawmakers from both chambers honored the team for winning the 2026 championship. Players, coaches, and team leaders—including head coach Rod Brind’Amour and captain Jordan Staal—visited the legislature and brought the Stanley Cup with them as part of the celebration.
Lawmakers praised the team for its achievement, noting that the Hurricanes won their second Stanley Cup in franchise history after defeating the Vegas Golden Knights in six games. The victory marked the team’s first championship since 2006 and created excitement across the state.
Lawmakers in the House also introduced a resolution (House Resolution 1238) to formally recognize and honor the Hurricanes for their championship win. During the ceremony, members of the House praised the team’s success and even joked with head coach Rod Brind’Amour, asking him to give them a motivational speech similar to what he told players before their final game. The moment added a light and celebratory tone while highlighting how the team’s victory inspired people beyond hockey.
The celebration followed a massive parade in Raleigh that drew more than 180,000 fans, showing widespread support for the team. Lawmakers and team members alike said the championship had a strong impact not only on sports fans but also on communities across North Carolina.
The Carolina Journal (Pomeranz) June 24, 2026
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
