Legislators left Raleigh on Tuesday after passing a crime bill and some appropriation bills although they did not reach agreement on additional funding for Medicaid.
Medicaid Funding
The two houses this week passed different bills to cover increased Medicaid costs, but did not resolve the differences between the bills. The funding shortfalls will likely result in reduced payments paid to medical providers that treat Medicaid patients.
Both bills significantly increase Medicaid funding. Unlike the House bill (S 403), the Senate bill (H 562) includes funding for the North Carolina Children’s Hospital, which will be led by Duke and UNC Health systems, and for the North Carolina Initiative, a rural health care initiative run through East Carolina University’s ECU Health, UNC Health, and their medical schools. Both houses in 2023 had approved multi-year funding for both purposes.
Legislators may consider this issue again when they return on October 20.
Appropriations Bills
Although legislators have not yet reached agreement on a new two-year budget bill (S 257), they did pass some funding bills this week.
- H 358, among other things, appropriates additional funding for the state match to draw down federal funds for Tropical Storm Chantal recovery, $35 million for infrastructure at the Centennial Authority sports complex in Raleigh, $51 million for an economic development project in Hertford County, and $1.5 million to the Raleigh-Durham International Airport to support a direct flight to Dublin.
- S 245 provides $15 million to the Department of Information Technology for cybersecurity and $5 million to the Administrative Office of the Courts for staff for eCourts implementation. The bill also changes the driver’s license renewal system by, among other things, reducing the number of visits to a DMV office.
Crime Bill
A bill (H 307) making various changes in criminal laws cleared the General Assembly this week. The bill sponsors advocated for many of the provisions in response to the recent killing on the Charlotte train system and named it after the victim of that crime—Iryna’s Law. Among other things, the bill would restrict release of defendants based on a promise to appear in court, require secured bonds or house arrests with GPS monitoring for certain offenders, and change death penalty laws.
Regulatory Reform Bill
Legislators passed a regulatory reform bill (H 926) that changes laws on various topics including wastewater, construction, and various regulated industries. It also exempts UNC campuses in Buncombe (UNC-Asheville), Orange (UNC-Chapel Hill), and Watauga (Appalachian State) counties from local zoning (state law already exempts NCSU in Wake County).
Veto Overrides
Several bills earlier vetoed by Gov. Josh Stein remain on the calendar for possible override votes. Among those are three bills concerning diversity, equity, and inclusion (DEI): H 171 (DEI in state government), S 227 (DEI in K-12 schools), and S 558 (DEI in higher education).
Legislative Schedule
Under the adjournment resolution (S 776) that was amended this week, legislators may return to Raleigh about once a month and stay up to four days per session. The next scheduled meeting date is October 20. The 2026 regular session is set to begin April 21.
