May 11, 2026
Old North State Report – May 1, 2026
UPCOMING EVENTS
May 6
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July 15-July 17
October 15
October 22
LEGISLATIVE NEWS
GOVERNOR STEIN APPROVES MEDICAID FUNDING MEASURE
On Thursday, Governor Josh Stein approved a $319 million Medicaid funding bill to prevent the state’s Medicaid program from running out of money next month. The measure passed with strong bipartisan support on Wednesday and becomes law immediately.
Key points in House Bill 696:
- The bill fills a major funding gap to ensure continued health care coverage for millions of North Carolinians.
- Some Democratic lawmakers expressed concern about provisions that could remove coverage for certain groups, including immigrant families, but still supported the bill to avoid a Medicaid shortfall.
- The legislation includes stricter work requirements and income checks for Medicaid recipients, which Republican leaders say are aimed at reducing costs.
- One provision could remove more than 20,000 immigrants from Medicaid, based on interpretations of federal rules.
- The bill also shifts $500,000 in funding away from the Attorney General’s office—requested for Medicaid fraud investigations—and instead directs it to the State Auditor’s office for oversight of the Department of Health and Human Services.
- Another section requires state officials to refer certain households to federal immigration authorities, a measure Stein previously vetoed in a separate bill.
Lawmakers from both parties acknowledge that the measure resolves the immediate crisis but does not address longer-term budget and Medicaid sustainability issues facing the state.
COMPETING AGENDAS SHAPE NORTH CAROLINA’S 2026 SESSION
North Carolina’s 2026 legislative session is taking shape around two contrasting agendas. The Senate is focused on maintaining continuity, pointing to past policy work and urging unity as the short session begins, while House Democrats are focused on affordability and are putting forward new proposals on wages, housing, and data‑center oversight.
Senate Priorities (Republican-led):
According to Senate leader Phil Berger, Senate leadership is focused on:
- Continuing long-term conservative policy direction established since 2011.
- Highlighting past accomplishments, including tax changes, regulatory reforms, education initiatives, and public safety measures.
- Building on 2025 session work, especially in areas like energy availability, affordability, and criminal accountability.
- Maintaining unity and stability within the legislature as they approach what Berger describes as a pivotal period for the state.
- Addressing unresolved issues, such as disagreements over spending and taxation, through continued negotiation.
The Senate’s approach is framed as staying the course and refining existing policy directions.
House Democrats’ Priorities
House Democrats outlined a different set of goals centered on cost-of-living concerns:
- Raising the minimum wage to nearly $15 per hour.
- Increasing housing affordability by expanding supply and reducing development delays.
- Adding oversight for data centers, citing their energy and water demands.
- Responding to rising living costs, which they describe as a major statewide challenge.
Democrats acknowledge that with Republican majorities, their proposals are unlikely to advance this session, but they present them as a roadmap for future policy direction.
Key Differences
- Policy Direction:
- Senate: Continue and strengthen existing conservative policies.
- House Democrats: Introduce new affordability-focused policies.
- Economic Emphasis:
- Senate: Emphasizes past economic reforms and stability.
- House Democrats: Emphasizes wage increases and cost-of-living relief.
- Regulatory Approach:
- Senate: Highlights regulatory reform already achieved.
- House Democrats: Propose new oversight, especially for data centers.
- Housing:
- Senate: Housing is not a central theme in Berger’s remarks.
- House Democrats: Housing affordability is a major priority.
- Tone and Framing:
- Senate: Calls for unity and continuation.
- House Democrats: Calls for policy shifts to address affordability pressures.
The Carolina Journal (Pomeranz) 4/17/26
NC LAWMAKERS CONSIDER DELAY OF 2026 PROPERTY TAX REVALUATIONS
North Carolina lawmakers are considering a plan that would allow some counties to delay their next property tax revaluations, a move aimed at easing the impact of sharply rising home values. A Senate committee advanced Senate Bill 889 that would let counties push their scheduled 2026 reappraisals to 2027 if they choose. Supporters say many homeowners have experienced steep increases in assessed values, and a delay could give counties more time to prepare and give residents temporary relief from sudden tax changes.
The proposal comes as legislators in both chambers are examining broader property tax reforms. Some lawmakers argue that rapid increases in valuations have created affordability challenges, especially for people on fixed incomes. County officials, however, note that delaying revaluations could create uneven tax schedules across the state and complicate local budgeting. The bill is still moving through the legislative process, and counties would have the option—not a requirement—to postpone their reappraisals.
NC Newsline (Childress) 4/29/26
LAWMAKERS PROPOSE $50 MILLION AFFORDABLE HOUSING LOAN FUND
A bipartisan North Carolina House bill would create a $50 million loan fund to help nonprofit developers cover the upfront costs of launching affordable‑housing projects.
The proposal, House Bill 1072, would establish the Affordable Housing Infrastructure Development Loan Program, administered by the N.C. Housing Finance Agency. The fund would offer below‑market, revolving loans to tax‑exempt nonprofits—such as Habitat for Humanity chapters—to pay for preconstruction expenses like land acquisition, surveys, grading, permits, and utility connections. Supporters describe these early steps as the “preconstruction valley of death,” where many affordable‑housing projects stall because nonprofits lack the capital to prepare sites.
The bill requires that at least 40% of the homes in any project supported by the program be reserved for households earning 80% or less of area median income. Funds cannot be used for actual home construction or rehabilitation; instead, the goal is to help nonprofits overcome the costly groundwork needed before building can begin. Because the loans are structured to be repaid and reused, lawmakers describe the fund as a one‑time investment designed to support long‑term, ongoing housing development.
Supporters—including both Republicans and Democrats—say the measure addresses a critical shortage of affordable housing in North Carolina. Nonprofit leaders note that preparing a site for construction can cost around $50,000 per home, meaning a small subdivision can require hundreds of thousands of dollars before any building starts. The revolving loan fund is intended to help nonprofits scale up from building one home at a time to developing entire subdivisions.
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