NC children will suffer from government gridlock. Here’s what lawmakers can do | Opinion

Children in North Carolina don’t follow the ins and outs of government budgeting. But the current dual impasses at the federal and state levels will soon start hurting them.

The federal government is shut down, and North Carolina has yet to pass a new budget, even though Gov. Josh Stein released his budget proposal more than six months ago, and the state House and Senate released theirs soon after. This stagnation hurts children, families and entire communities.

Here in North Carolina, lawmakers should prioritize the state’s 2.5 million children by passing a state budget that at a minimum keeps Medicaid expansion intact but also reconsiders a state level child tax credit. Such a tax credit would mean more money in the hands of working parents. Supporting working families could also generate more tax revenue to support public schools.

While federal money is critical, two thirds of total government spending on children comes from state and local government. Since less than 10 % of federal spending on children is on education, childcare, social services and housing — all areas that research shows have substantial impacts on children’s lives — the onus is largely on states to ensure adequate support for children.

This state support has many forms, with two of the biggest including healthcare through Medicaid and food assistance through the Supplemental Nutrition Assistance Program (SNAP) and the Women, Infants and Children (WIC) program. The Medicaid impasse in North Carolina continues, while families here are being reassured, for now, that their benefits from SNAP and WIC are protected through the month of October. But that assurance disappears absent some federal budget agreement before the end of the month.

One thing lawmakers can do right now for North Carolina families is demonstrate their commitment to universal access to Pre-K, or at minimum reduce the risk of closures of existing Pre-K and early education programs funded by state dollars. This support helps working families — including the childcare workforce – and is a crucial factor in a child’s early development.

While North Carolina and other states do have options, many budget decisions and other investments hinge on federal government allocations. One example is tax credits: As of last year, more than 30 states expanded federal tax credits, such as the earned income tax credit, by supplementing it at the state level. By boosting family income, these modest state level expansions also support children and their families.

The head-spinning restructuring and dismantling of federal government programs, funding and workforce that started in January is at a critical juncture now with the risks and costs that come with shutdowns. The federal budget stalemate makes clear the critical roles of state and local governments and the impact of their budget decisions on children and their families. No two states are exactly the same when it comes to how and what they budget for and who gets to decide. But every state’s response to federal budget cuts on children and families should address core areas — food, housing, education to name just a few — that decades of evidence show matter for children’s futures.

Lisa A. Gennetian and Jenni Owen are professors at the Sanford School of Public Policy at Duke University and faculty affiliates of its Center for Child and Family Policy. This op-ed does not represent an institutional position of Duke University.

This story was originally published October 9, 2025 at 5:00 AM.