After a year of stalemate and political wrangling, North Carolina lawmakers on Thursday, July 2, finally pushed a long-awaited state spending plan across the finish line and over to Gov. Josh Stein. The 2026 Appropriations Act bundles raises for teachers and many state workers with tax changes and new spending for disaster recovery and transportation. Stein now has a short window to sign it, veto it or let it quietly become law.
Legislature moves S257 to the governor
Both chambers signed off on the conference report late Thursday, advancing a 634-page spending bill to the governor’s desk, as reported by WSOC-TV. The full text is published as Senate Bill 257, the 2026 Appropriations Act, in the General Assembly’s document library.
The bill and conference report, available through the North Carolina General Assembly, lay out detailed line items across education, health care and transportation, spelling out exactly where the roughly $34 billion would go.
What the bill would deliver
The spending plan totals about $34 billion and is written to deliver average pay bumps for teachers and raises for state employees while also mapping out further tax changes, according to legislative documents and media reports. WRAL reports that the package includes an average teacher raise of around 8 percent and modest raises for many state workers. It also details revenue changes that reduce the personal income tax rate on a scheduled timeline and adjust exemptions for certain industries.
Supporters praise the deal, critics warn of tradeoffs
Top Republican leaders are selling the measure as a win-win combination of tax relief and historic raises. Policy groups and advocates, however, argue that the plan locks in deep, long-term tax cuts and keeps billions parked in reserves instead of targeting more spending to specific needs.
Analysis from the NC Budget & Tax Center raises concerns that some costs could be shifted to counties and families and criticizes parts of the revenue plan released June 30.
What happens next at the governor’s desk
Gov. Stein has said he will “review it incredibly closely,” and state rules give him 10 days after the bill is presented, while the General Assembly is in session, to sign or veto it. If he takes no action within that window, the bill becomes law without his signature.
The political math looms large over that decision. If Stein vetoes the measure, Republicans would likely have the votes to override in the Senate but would fall short in the House without some Democratic crossover, a scenario that could trigger more negotiations or deal-making. For the official presentment and timing rules, residents are directed to the General Assembly’s resources on how bills become law.
Lawmakers cast Thursday’s vote as the conclusion of a year-long budget fight. For North Carolinians, the next several weeks will be pivotal, as the governor’s response is the only remaining step that could still reshape the final spending package.
