UPCOMING EVENTS

September 29, 2025

Thinkers Lunch: North Carolina by the Numbers

October 9-10, 2025

Association of Executives of North Carolina (AENC) Fall Conference

November 13, 2025

Women Lead NC

January 12, 2026

Economic Forecast Forum

LEGISLATIVE NEWS

MEDICAID FUNDING STALLS

North Carolina’s Medicaid program, which provides health coverage to over three million residents, is facing a funding crisis. The state Department of Health and Human Services (DHHS) warned that without additional funding by October 1, it would be forced to cut reimbursement rates to hospitals, nursing homes, and other providers — potentially reducing access to care and triggering layoffs.

Earlier this year, DHHS requested $819 million to maintain Medicaid services for the fiscal year starting in July. Lawmakers initially approved $600 million, leaving a shortfall of $219 million.

Both the House and Senate agree on the need for more Medicaid funding and even on the total amount required. However, on Tuesday, they passed separate bills and refused to consider each other’s versions due to a dispute over additional health-related projects:

The House’s version of the funding bill, an amended Senate Bill 403, focused solely on Medicaid, appropriating $192 million in additional Medicaid funding, and proposes to fill the remaining gap by cutting vacant positions in DHHS and other agencies. It excludes funding for other projects, such as a new children’s hospital and rural health initiatives.

The Senate’s version, an amended House Bill 562, includes the same Medicaid funding but also allocates money for (1) a new children’s hospital in Wake County (a partnership between UNC Health and Duke Health); (2) the NC Care Initiative, a rural health program; and (3) other health-related infrastructure projects.

Without a compromise, DHHS will implement provider rate cuts starting October 1. Health care providers may stop accepting Medicaid patients, lay off staff, or shut down. Patients, especially those with disabilities or chronic conditions, may lose access to essential care. The state risks losing critical federal matching funds, potentially removing over $1 billion from North Carolina’s health care system.

Lawmakers adjourned without a resolution and are not expected to return until October 20, after the cuts are scheduled to begin. There have been appeals to the Governor to delay the provider rate cuts past the October 1 date to give the Legislature the opportunity to resolve the impasse during the session beginning October 20. The lack of a comprehensive state budget has further complicated the release of previously earmarked funds.

Carolina Public Press (Michels) 9/23/25

PLANNED PARENTHOOD FACES MEDICAID BAN

House Bill 192, titled "Defund Planned Parenthood & Cost Transparency," recently passed the North Carolina Senate in a 28-20 vote, with all Republicans supporting and all Democrats opposing. The bill now goes to the House for continued debate.

The bill proposes removing Planned Parenthood as a Medicaid provider in the state, though it does not cut Medicaid funding itself. Instead, it changes which organizations are eligible to receive Medicaid reimbursements for certain services.

Planned Parenthood, which offers abortion services along with broader reproductive health care, would still be allowed to operate in North Carolina but would lose access to Medicaid funding if the bill becomes law. The organization has clinics in several cities across the state and could continue providing services through other funding sources.

The bill also includes provisions requiring medical providers to give patients clearer, itemized cost information before services are rendered and before unpaid bills are sent to collections.

Supporters, including Senator Amy Galey (R-Alamance), argue the bill ensures taxpayer money does not indirectly support abortion services and claim county health departments can fill any gaps in care. Critics, however, warn that the legislation could reduce access to essential health services, especially in rural areas, and disproportionately affect low-income patients.

The Center Square (Wooten) 9/23/25

IRYNA’S LAW HEADS TO GOVERNOR’S DESK

House Bill 307, known as “Iryna’s Law,” is a sweeping criminal justice reform passed by the North Carolina legislature on Tuesday in response to the tragic murder of Iryna Zarutska, a 23-year-old Ukrainian refugee who was fatally stabbed on a Charlotte light-rail train in August 2025. The bill passed the Senate 28–8 and the House 81–31 and now awaits Governor Josh Stein’s signature

The legislation introduces major changes to how violent offenders are managed before trial, aiming to prevent repeat offenses and improve public safety. It eliminates cashless bail, meaning defendants charged with certain violent crimes can no longer be released on a written promise to appear in court. Instead, they must be held under stricter conditions such as secured bonds, house arrest, or GPS monitoring.

A new category of “violent offenses” is defined, which includes crimes like murder, rape, armed robbery, and fentanyl trafficking. For individuals with prior convictions—especially repeat offenders—judges are required to impose more restrictive pretrial conditions. The bill also limits judicial discretion, requiring judges and magistrates to document their reasoning for release decisions and consider the defendant’s criminal history. Failure to do so could result in disciplinary action or removal.

The bill also reforms death penalty procedures in North Carolina. It mandates that appeals and post-conviction motions be resolved within two years and that all hearings occur in the county of conviction. Additionally, committing a capital felony on public transportation is now considered an aggravating factor, making offenders eligible for the death penalty.

The Carolina Journal (Zehnder) 9/24/25

HOUSE ADVANCES TAX RELIEF FOR DISABLED VETERANS

On Tuesday, a bill to raise the property tax homestead exclusion for disabled veterans received a favorable hearing in the House Finance Committee.

House Bill 118 proposes increasing the property tax homestead exclusion for disabled veterans in North Carolina from $45,000 to $61,000 of their home’s appraised value. Surviving spouses would retain the benefit unless they remarry.

The House Finance Committee approved a substitute version of the bill that includes reimbursing local governments for 50% of the lost tax revenue.

Local officials, especially in counties with large military populations, such asCumberland and Onslow, expressed concern about the financial impact. Other affected counties include Wake, Guilford, Mecklenburg, and Harnett.

Representative Deb Butler (D-New Hanover) supports the bill but cautioned about balancing veteran support with other state needs. Representative Grant Campbell (R-Cabarrus), a sponsor, argued that North Carolina still lags behind neighboring states in veteran tax relief.

To qualify, veterans must meet one of the following:

• Have a total and permanent service-connected disability certified by the VA or another federal agency.
• Have received special housing assistance from the VA.
• Be deceased, with the VA certifying the death was service connected as of January 1 of the taxable year.

The bill now moves to the House Rules Committee.

NC Newsline (Childress) 9/23/25

ADJOURNMENT RESOLUTION AMENDED

On Wednesday, the General Assembly amended an adjournment resolution passed in late July. Senate Joint Resolution 776 would adjourn the 2025 regular session to a date certain and limit the matters that may be considered upon reconvening, such as adoption of conference reports for bills, including bills providing for disaster recovery, considering the Governor’s vetoes, handling appointments, and addressing issues related to litigation, elections, or impeachment. These dates are critical for determining whether and when a state budget may be passed.

Session Date Changes

GOVERNOR’S EXECUTIVE ORDER SETS NC’S AI VISION IN MOTION

Governor Josh Stein has issued an Executive Order to strengthen North Carolina’s leadership in artificial intelligence (AI). The order establishes an AI Leadership Council, an AI Accelerator within the Department of Information Technology, and AI Oversight Teams across state agencies. These initiatives aim to promote responsible AI use, improve government services, and prepare the workforce for future demands. The council, led by Teena Piccione and Lee Lilley, will guide strategy and policy while ensuring data privacy and security. With major AI investments, such as Amazon’s $10 billion campus and FUJIFILM Diosynth’s biomanufacturing facility, the state is experiencing rapid growth in AI-related industries. Governor Stein emphasized the importance of using AI to enhance public services and economic development, while also addressing challenges such as job creation and energy needs. Public training programs will be launched to improve AI literacy and prevent fraud. The council will include members from government, academia, and the tech sector to support North Carolina’s AI advancement.

Office of Governor Josh Stein 9/2/25

WHAT WE’RE LISTENING TO

Under the Dome Podcast

Do Politics Better Podcast

WUNC Politics Podcast

Carolina Newsmakers Podcast

NC Capitol Wrap Podcast

WHAT WE’RE READING

Asheville Citizen Times

Carolina Journal

Charlotte Observer

Fayetteville Observer

Greensboro News & Record

NC Insider

New Bern Sun Journal

News & Observer

North State Journal

Our State Magazine

Triangle Business Journal

Under the Dome

Wilmington Star News

Winston-Salem Journal

WRAL