Josh Stein Signs Historic $34 Billion North Carolina Budget

Governor Josh Stein signed Senate Bill 257 into law on July 7, 2026, enacting a $34 billion state budget and ending a spending gap of more than two years. The budget is the largest in the state's history and was passed by the Republican-led General Assembly with enough support, including nearly half of the Democrats, to override a potential veto.

The spending plan delivers the largest starting teacher pay raise in nearly 50 years and the first overall teacher pay increase in 15 years. It also provides a minimum 13% pay increase for state law enforcement and correctional officers, fully funds Medicaid, and allocates over $700 million for Hurricane Helene recovery in western North Carolina. Additional investments were directed toward community colleges, the DMV, child care, cybersecurity, and a $25 million investment to reopen Martin General Hospital.

Despite signing the bill, Stein criticized the legislature for eliminating more than 1,000 state government positions and removing the Office of Minority Health and Health Disparities. He described certain provisions as "unconstitutional and wrong-headed," arguing they undermine the executive branch and local governments. In response, House Speaker Destin Hall and Senate President Pro Tem Phil Berger defended the budget, characterizing it as a means to provide tax relief and rein in spending.