NC Lawmakers Set to Unveil Shocking Priorities for 2026—Is Your Future at Risk?

As North Carolina remains the only state in the nation without a comprehensive budget, critical funding for essential services hangs in the balance. Key areas like Medicaid, employment raises for state workers, and recovery efforts from natural disasters are all trapped in the ongoing budget standoff, which is fueled by deep-seated disagreements among Republican lawmakers over tax policy. This deadlock continues to pose significant challenges for the state, directly affecting both public service employees and citizens who rely on these services.

State lawmakers could reconvene at any time, but as per multiple sources, it’s unlikely that they will do so until after the March primary elections. The internal dispute among Republicans in the state House and Senate revolves around whether to continue lowering income tax rates, even as the state's own economists caution about an impending budget deficit.

Tax revenue constitutes the bulk of North Carolina's funding, meaning that until the internal debate among GOP leaders is resolved, the future budget remains uncertain. Democratic Governor Josh Stein has been vocal in criticizing the legislature for their inaction. He pointed out that North Carolina ranks among the states with the lowest salaries for essential workers, including teachers, state troopers, and prison staff. For instance, the average salary for a North Carolina State Highway Patrol officer is approximately $10,000 less than the national average, while entry-level prison workers would need over $14,500 in raises to meet average compensation levels in their field.

This stagnation could exacerbate difficulties in recruiting and retaining state employees, as agencies struggle to provide competitive salaries. “Our public servants are not adequately compensated for the value they provide to all of us,” Stein remarked. He added that the lack of budgetary support is detrimental to critical functions like mental health care and Medicaid, which remains unfunded.

The John Locke Foundation, a conservative think tank based in Raleigh, labeled the budget impasse as “a severe failure of governance.” They stressed that this stalemate doesn’t just delay necessary spending; it effectively blocks progress on broadly supported policy initiatives. Their report indicated that the ongoing deadlock has hindered multiple shared priorities that should have been straightforward wins for the legislature.

Frustrations surrounding the lack of transparency in budget discussions have also been echoed by some Republican lawmakers. Rep. Brian Echevarria, R-Cabarrus, expressed his dissatisfaction in a recent newsletter, stating that a select group controls the budget process, making it challenging for newer members to have any influence.

When the legislature does reconvene, likely in late March or early April, Stein is expected to push for urgent action on Medicaid funding, which is projected to run out of money between March and April. If the budget remains unresolved, over 3 million North Carolinians on Medicaid could lose access to essential services, including medical visits, prescription medications, and ongoing treatments. This scenario poses a severe risk, not only for individuals but also for the healthcare system at large.

In prior attempts to address the budget situation, Stein offered various solutions in 2025, including reducing Medicaid payments to hospitals, but those efforts were met with legal challenges. A special session called for Medicaid funding in November saw only Democratic lawmakers present, as Republicans opted to defer discussions until the following year.

Future Legislative Concerns

While Medicaid and a new state budget are expected to dominate discussions in the upcoming session, other significant issues will also be on the table. These include potential changes to election laws, property tax reform, and funding for recovery efforts from hurricanes, particularly under the Helene recovery plan. Lawmakers are exploring various strategies to relieve small businesses affected by disasters and provide aid to local governments.

Furthermore, the annual farm bill, which previously encountered bipartisan opposition, may also return to the forefront of legislative discussions. Complications arose from controversial provisions regarding raw milk sales and lawsuits against pesticide companies, reflecting the growing tension within the agricultural community.

Additionally, mental health issues are expected to receive more attention following high-profile incidents involving individuals with extensive mental health histories. In light of recent violent events in urban areas, lawmakers have expressed a desire for increased funding to enhance mental health services and reform the state’s involuntary commitment rules.

As lawmakers prepare for the upcoming session, the pressure mounts for effective solutions to stabilize the budget and address pressing issues affecting North Carolinians. With significant financial uncertainties looming, the outcome of the ongoing tax policy debates will determine not just the state’s fiscal health but also the welfare of its citizens.