May 13, 2026
Old North State Report – May 8, 2026
UPCOMING EVENTS
- May 14: The Carolina Journal Poll – May Presentation (Dinner)
- May 18: Thinkers Lunch: A Look at Population Trends in NC
- 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
SENATE MOVES TO SLOW PROPERTY TAX HIKES
The North Carolina Senate has approved Senate Bill 889, a bill that delays the use of new county property tax reappraisals until 2027. Senate leaders, especially Phil Berger, argue that many counties have seen dramatic increases in property values—often 50% or more—and that using those new values immediately would result in steep tax hikes for homeowners. By postponing the effective date of the reappraisals, lawmakers say they are giving residents stability and preventing sudden financial strain, particularly for people on fixed incomes.
The bill applies to the counties scheduled to conduct reappraisals in 2026, though a late amendment removes Clay, Chowan, and Pamlico counties because delaying would have created financial problems for them. The legislation also clarifies that property owners will still be able to appeal their valuations in both 2026 and 2027. Supporters frame the delay as a temporary pause while the legislature considers broader reforms to the state’s property tax system.
The measure has passed the Senate and now moves to the House, where its prospects are uncertain. House leaders are simultaneously considering House Bill 1092 which would amend the North Carolina Constitution to limit how quickly local governments can grow property tax revenues.
The Carolina Journal (Pomeranz) 5/7/26
NC LAWMAKERS PROPOSE $50M BOOST FOR AFFORDABLE HOUSING
A bipartisan group of North Carolina House lawmakers has proposed creating a $50 million revolving loan fund to help nonprofit affordable‑housing developers cover the expensive early stages of building homes. House Bill 1072 responds to what legislators and housing groups describe as the “preconstruction valley of death,” where nonprofits struggle to pay for land, surveys, grading, permits, and utility connections long before any construction financing becomes available.
The fund would be managed by the N.C. Housing Finance Agency and would offer below‑market loans only to tax‑exempt nonprofits that rely on volunteer labor and donated materials. The money could not be used for construction itself, only the upfront work needed to make a project viable. In return, developers would have to reserve at least 40 percent of the homes for households earning 80 percent or less of the area median income. Because the loans are repaid, the fund is designed to continually recycle money into new projects.
Habitat for Humanity leaders say this kind of support could allow local affiliates to move from building one home at a time to developing entire subdivisions. They estimate that site preparation alone averages about $50,000 per home, meaning a 10‑home project requires roughly half a million dollars before construction even begins. With access to this fund, Habitat believes affiliates could build as many as 1,000 additional homes over five years.
NC DEMOCRATS URGE ACTION ON HEALTHCARE AFFORDABILITY
North Carolina House Democrats are urging Republican leaders to act on a new set of healthcare bills just days after the legislature approved long-delayed Medicaid funding. At a press conference, Democrats argued that the state still faces major gaps in affordability, access, and support for vulnerable populations, and they pressed GOP lawmakers to grant hearings for four recently filed bills.
The largest proposal, the Affordability in Healthcare Act (House Bill 1175), would overhaul parts of the state’s healthcare system by expanding market competition, improving access to affordable coverage, and curbing practices that drive up medical costs. A central feature is a statewide health purchasing consortium designed to combine the negotiating power of multiple state health plans to lower prices. Supporters say this could save millions and make care more accessible.
Other bills focus on stabilizing Medicaid and autism services, expanding maternal care and cancer screening access, and improving long-term care options for older adults. Democrats emphasized that these measures would protect essential services and reduce preventable harm, especially for families struggling with long-term care needs. They also highlighted the fragility of the current system, noting that many families cannot afford to keep aging loved ones at home even when it is the safest option.
Republican leaders have not commented, and none of the bills have GOP cosponsors, making it unlikely they will receive hearings under current legislative dynamics.
NC Newsline (Kingdollar) 5/4/26
NORTH CAROLINA LAWMAKERS WEIGH NEW DATA CENTER RULES
North Carolina lawmakers are considering a bill that would sharply increase regulation of data centers and remove many of the incentives that previously attracted them to the state.
The proposed Ratepayer and Resource Protection Act (House Bill 1063) would require data centers to pay the full cost of the electricity and other resources they consume, a shift intended to prevent utilities from passing those expenses on to residents. Supporters argue that data centers place heavy demands on the electric grid and contribute to rising utility bills, and they emphasize that many North Carolinians are skeptical of new data center development. The bill would also eliminate state and local incentives for these facilities, marking a significant departure from the state’s long-standing economic development strategy.
The legislation faces an uphill battle in the Republican-controlled legislature. A similar bipartisan bill introduced in 2025 never received a committee hearing, and analysts suggest the current proposal is unlikely to advance. Still, the issue is gaining attention as data centers proliferate nationwide due to growing demand from artificial intelligence and cloud computing. Opponents of rapid expansion argue that these facilities strain water and energy systems while offering limited public benefit.
Winston-Salem Journal (Craver) 5/4/26
LAWMAKERS CONSIDER AID ADJUSTMENT FOR VETERANS’ SCHOLARSHIP
The North Carolina Scholarship for Children of Wartime Veterans—a program created in 1934 to cover tuition for children of veterans who were disabled or killed in service—has been unable to meet its commitments because the state has gone months without a full budget. Students had relied on the scholarship to afford tuition, rent, and basic expenses. Instead, their spring 2026 awards were cut to 25% of the promised amount, and the application portal for the next year never opened.
Lawmakers have now proposed an emergency fix by adding scholarship funding to a Medicaid‑related bill, Senate Bill 816. The plan includes $1 million in one‑time money to help students who received only partial awards and $10 million in ongoing funds to reopen applications for the next academic year. Final votes are scheduled soon, after which Governor Josh Stein will decide whether to sign the measure. However, even with this infusion, the program’s long‑term stability remains uncertain, and the new funding is not enough to fully restore all categories of scholarships.
Families and veterans argue that the state is failing to uphold a promise made to those who served, and the uncertainty has left many students struggling financially despite assurances that their education would be covered. The situation reflects broader budget gridlock in North Carolina, where the absence of a new state budget has affected multiple programs and created widespread funding delays.
The News & Observer (Sartwell) 4/24/26
LATEST POLLS
RealClear Polling: North Carolina Senate- Whatley v. Cooper
WHAT WE’RE LISTENING TO
Tying It Together with Tim Boyum
WHAT WE’RE WATCHING
