07/02/2026
2026 NC BUDGET PASSED 2ND READINGS. FINAL VOTES SCHEDULED TOMORROW BEFORE HEADING TO GOVERNOR’S DESK:
2026 APPROPRIATIONS ACT
(Summary and Highlights)
SALARY PACKAGE
• Teachers
o 8% average raise for teachers.
o This is the highest average raise in decades. (2006) and the highest teacher pay raise since Republicans took power.
o Starting teacher pay increased to 53,838 ($48,000 base pay+ local supplements.)
▪ This would put NC at #1 in the South in starting teacher pay.
o Teacher Bonuses:
▪ $500 for teachers 0-15 years.
▪ $1,000 for teachers 16+ years.
o On average, teachers with 25+ years of experience would earn an estimated $72,847 including State and local supplements.
o This proposal would continue a trend of historically large Republican-led investments in teacher pay. Under GOP leadership, teacher pay has risen faster and more consistently than under previous Democrat-controlled governments.
• State Employees
o 3% across-the-board raise.
o Prioritizes bonuses for lower-income state employees, ensuring they are focused on those who need it the most.
o Non-Teacher Bonuses:
▪ $1,750 for those making less than $65,000.
▪ $1,000 for those making more than $65,000.
• Retirees
o 2.5% across-the-board COLA bonuses.
• Law Enforcement/NCSHP/Correctional Officers
o Minimum 13% across-the-board raise for state law enforcement and correctional officers at the Department of Adult Corrections
o 20.3% average raise for SBI
o 17.7% average raise for NCSHP
o Local law enforcement officers will receive a one-time $1750 bonus.
TAX PACKAGE
• Current Personal Income Tax reduction schedule:
o 3.49% beginning as early as tax year 2027 if revenue triggers are met
o 2.99% beginning as early as tax year 2028 if additional revenue triggers are met
o 2.49% beginning as early as tax year 2029 if final revenue triggers are met
o Additional trigger opportunities continue through tax year 2034 if prior triggers are not met earlier.
• Revised Personal Income Tax reduction schedule:
o 3.49% for tax years 2027–2029
o 3.24% for tax years 2030–2032
o 2.99% for tax years 2033–2034
o After 2034, allow up to two additional 0.25% reductions—from 2.99% to 2.74%, and then from 2.74% to 2.49%—but only if new revenue triggers are met.
• Aligns with 15 years of GOP tax reductions, putting more money back in the pockets of NC taxpayers.
• Republicans are delivering historic raises while maintaining the fiscal discipline that made North Carolina one of the strongest economies in the country.
AGRICULTURE & ENVIRONMENT
• $54M for Farmland Preservation to preserve rural working lands under intense development pressure.
• $45M towards Emerging Contaminant Mitigation Fund to assist and support local governments in identifying and remediating PFAS.
• $10M towards To***co Trust Fund to support economic opportunities across rural NC.
• $7M for NC Zoo’s Asia, capping a decade-long zoo expansion project
HELENE RECOVERY
• $450M to match pending federal aid for WNC
• $100M in capital grants for local government building and infrastructure repairs
• $75M for additional housing repair, reconstruction and support programs
• $30M in additional funding for reconstruction of damaged and destroyed private roads/bridges
• $20M in additional loan capacity for local government cashflow loans.
• $18M in wildfire mitigation-related funding
JUSTICE & PUBLIC SAFETY
• $30M in School Safety Grants that provides funds to support students in crisis, school safety training, and the purchase of safety equipment.
• $30M to the Private Bridge and Road Program. Transfers funds from the Helene Fund to support the Private Bridges and Road program for Helene recovery.
• Provides funding for 24 SBI positions to support investigations and enforcement activities related to drug crimes, v***r product laws, and other areas of SBI jurisdiction.
• 18 new Assistant District Attorney (ADA) positions across the state and funding to support 4 additional ADA’s to serve as Special Assistant United States Attorneys.
• 10 Capital Criminal Appeal Attorneys to meet the new timeline and increased caseload created by Iryna’s Law.
IT
• $27 million for cyber security upgrades
• $500k for CJ LEADS (database of offenders for state and local law enforcement)
HEALTH & HUMAN SERVICES
• Child Care:
o Increase the childcare subsidy market rates to the seventy-fifth percentile as recommended by the 2023 Child Care Market Rate Study for children in three-, four-, and five-star-rated childcare centers and homes.
o Sets a state rate floor for center-based and home-based care shall be set at the seventy-fifth percentile statewide market rate as recommended by the 2021 Child Care Market Rate Study for children in three-, four-, and five-star-rated childcare centers and homes.
• Additional Increases for State operated Health Facility Nurses and other Healthcare workers. Brings their total salary increase to 5.5%
• This includes those who work in Dept of Adult Corrections.
• Provides funds to increase the wages of direct care workers who provide services for individuals on the State's Innovations waiver and for Personal Care Services.
• Provides $4M R to DHHS to Increase Program integrity and oversight of the Medicaid Program.
GENERAL GOVERNMENT
• N.C. State Board of Elections
o 14 New FTEs, and increased budget for department to $14,653,909
o The large number of new FTEs for a pretty small department is notable by itself. Highlights Republican commitment to supporting new elections system under Auditor.
• Office of State Auditor
o 25 New FTEs
o Increased budget for department to $31,337,670.
• GenGov cut funding for DEI contracting programs administered by HUB. This budget eliminates the funding for the HUB department completely.
• A new $2,500,000 appropriation for "Medicaid Waste and Abuse" investigation.
TRANSPORTATION
Invests $5.15 billion in North Carolina's transportation network focused on enhancing DMV services, roads, bridges, transportation safety, ferries, airports, and infrastructure resilience.
With substantial State investments bringing DMV's total funding to $237.8 million, North Carolina residents can expect shorter DMV wait times, expanded driver license office hours, and new DMV locations.
A few of these highlights for DMV are noted as:
• $5.22 million to raise Driver License Examiner pay, increasing starting salary from approximately $44,200 to $52,000
• $3 million for additional driver license and ID card production capacity
• $3 million for new DMV compliance and oversight staff
• $1.94 million for extended weekday hours and year-round Saturday service at busy DMV offices
• $1.37 million for new DMV offices
• $760,722 to operate four newly authorized driver license offices
In addition to these improvements to DMV, the State has also invested heavily into transportation infrastructure such as:
• Strengthening road maintenance in North Carolina by bringing the General Maintenance Reserve to $963.2 million statewide.
• Investing $24.2 million in safety projects through the Spot Safety Program, including roadway improvements, traffic signals, signage, lighting, and the wildlife crossings program.
• Investing in aviation infrastructure, including $32 million in regional airport grants.
• Funding pavement preservation and bridge programs to extend the life of existing infrastructure while simultaneously increasing safety and protecting taxpayer dollars.
