Governor Josh Stein Vetoes North Carolina Homeless Camping Ban

North Carolina Governor Josh Stein vetoed House Bill 437 on July 8, 2026, rejecting legislation that would have implemented statewide restrictions on homeless encampments and created regulated drug-free zones for homeless services. The bill required local municipalities to enforce camping bans and allowed for dedicated camping areas away from business districts, but provided no funding for enforcement or homelessness services.

Stein characterized the legislation as a "poorly constructed" unfunded mandate that criminalizes individuals seeking addiction treatment rather than providing real solutions. In contrast, Representative Brian Biggs and Senator Brad Overcash defended the bill, with Biggs arguing that the veto puts the state at risk of missing critical federal funding to move people into stable housing.

The veto occurs as business owners in Wilmington report increasing financial burdens, including thousands of dollars in cleanup fees, as homeless individuals are pushed into commercial areas. While the North Carolina General Assembly may attempt to override the veto, Republicans currently lack the three-fifths majority required without support from Democrats or unaffiliated members.

The veto was the sole rejection in a legislative session where Stein signed 12 other bills into law. These included the NC Farmland and Military Protection Act, which restricts land acquisition by adversarial foreign nations near military bases, and the Virtual Currency Kiosk Consumer Protection Act, designed to prevent fraud at cryptocurrency ATMs.