NC lawmakers return for new session with Medicaid deal and budget talks ahead
North Carolina’s General Assembly opened its short session Tuesday with a Medicaid funding deal and a new budget proposal from Gov. Josh Stein — but the long-overdue state budget remains unresolved.
Republican leaders expressed cautious optimism that a spending plan could finally pass after months of stalemate over tax cuts.
Here are key takeaways from Tuesday:
• Medicaid deal reached: House Speaker Destin Hall and Senate leader Phil Berger announced a deal to provide $319 million in additional Medicaid funding to finish the fiscal year ending in June, with House votes expected Wednesday. The bill also includes provisions to address fraud and audit the program.
• Stein’s budget pitch: The Democratic governor proposed 15% raises for law enforcement and nurses, the highest starting teacher pay in the Southeast, freezing income and corporate tax rates at current levels, and $115 million for public school building repairs.
• Tax cuts remain the sticking point: The Republican-controlled House and Senate disagree on how fast to reduce the individual income tax rate. Berger wants to honor benchmarks set in 2023; Hall wants to slow the reductions unless the state has more revenue. Both say “everything is on the table.”
• Budget timeline: Hall said he thinks a budget can pass by the end of the short session, with the last voting day of session potentially July 2. The legislature failed to pass a budget in 2025 when it was due.
• Leandro education funding: Democratic Rep. Julie von Haefen is again pushing for an increase in education funding following the recent state Supreme Court decision that ended a 30-year fight to boost public schools as part of the case known as Leandro. Von Haefen’s bill includes money for teacher compensation, recruitment and retention.
• Berger’s final session: The Senate leader is starting his last legislative session after losing his Republican primary in March. He said he intends to serve through the end of his term in December.
The summary above, based on reporting by Esther Frances, Luciana Perez Uribe Guinassi and Dawn Baumgartner Vaughan, was compiled with the help of AI tools and edited by journalists. It includes links to full stories that were reported, written and edited entirely by journalists, and will be updated as our coverage continues.
