North CarolinaSB 2572025-2026 SessionSenateWALLET

AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE AGENCIES, DEPARTMENTS, AND INSTITUTIONS.

Sponsored By: Ralph Hise (Republican), Brent Jackson (Republican), Michael V. Lee (Republican)

Signed by Governor

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716 provisions identified: 421 benefits, 80 costs, 215 mixed.

Firefighters get $184 monthly pension

Eligible firefighters and rescue squad workers with 20 years of service who are age 55 get $184 per month. Disabled members have Board‑set rules. Some must contribute until 240 months to qualify. For a line‑of‑duty death, the principal beneficiary gets the monthly amount or a set lump sum. This pension is on top of other benefits.

Energy help for seniors and disabled

For FY 2026–2027, the state provides $62.7 million for LIHEAP Energy Assistance Payments. You may qualify if your household has someone age 60+ with income at or below 150% of the federal poverty level. It also covers disabled people who receive services through the Division of Aging. County social services must file an outreach plan by August 1 each year.

Higher pay rates for personal care

Starting in FY 2026‑2027, the state provides $70.8 million each year to raise rates for personal care services in Medicaid Direct and the Community Alternatives Programs for Children, Disabled Adults, and Choice. This increases payments to providers who deliver in‑home supports.

More child care funding and supply

Beginning July 1, 2026, the state funds child care services and quality work with $506.2 million for the year ending June 30, 2027. It also invests $3.25 million in a two‑year pilot to grow family child care homes across three regions. Councils can spend up to 5% on admin, and the first progress report is due March 1, 2027. These funds help lower child care costs and expand slots.

2026–27 teacher pay and supplements

The 2026–2027 monthly pay schedule sets teacher pay by step (examples: step 0 $4,800; step 10 $5,314; step 25+ $5,900). Protected teachers must get at least their legacy pay plus longevity/bonus where the statute applies. Monthly supplements: NBPTS 12%; “M” teachers 10%; six‑year license +$126; doctoral license +$253; certified school nurses 10%; school counselors with a master’s or higher +$100. School psychologists, speech pathologists, and audiologists start at step 6 of the “A” schedule, get 10% of monthly pay plus $350 per month, and step 26 is 7.5% above step 25.

Adult diploma program with milestone pay

Program providers are paid for each milestone a participant completes, up to $7,500 per person. Payments include $275 per half credit, $275 for employability skills, $275–$825 for workforce credentials (tiered by hours), and $1,100 for a diploma. The program must offer strong supports: intake assessments, transcript reviews, skill remediation, 24/7 tutoring, career advising, resume help, mock interviews, and milestone tracking.

Better benefits and job rights at regional school

Employees of the regional school board participate in the Teachers’ and State Employees’ Retirement System and the State Health Plan like other school staff. Teachers are eligible for paid parental leave. Staff moved by the Type I transfer keep salary parity with on‑campus residential school staff, and no one loses salary due to the transfer (effective December 1, 2026). Local units must grant a one‑year leave when a teacher asks in writing to teach at the regional school, with 45‑day initial and 90‑day later notice windows, plus return and placement rules.

Bigger loans for primary care study

Students in primary care medicine and psychiatry can get forgivable loans up to $50,000 per academic year, with a $200,000 total cap. Priority goes to applicants in eligible counties, and a lottery may be used if funds are short. The change starts with 2026–2027 awards.

Bigger pay and bonuses for principals

Starting July 1, 2026, principals are paid by a new schedule tied to school size. If eligible, they also get two supplements on Oct 31, 2026 and Mar 31, 2027 equal to half the gap between their supplemental and base schedule amounts. Annual growth bonuses pay up to $15,000 for top‑growth schools (top 5% = $15,000; top 10% = $10,000; top 15% = $5,000; top 20% = $2,500; top 50% = $1,000) if employed on October 1. A recruitment program pays $30,000 a year, monthly, for up to 36 months to principals at up to 40 selected, lowest‑performing schools, if funded.

Forgivable loans for nursing students

Nursing Fellows loans pay by term. Associate degree: up to $2,500 per semester or $1,250 per summer, up to 4 terms. BSN at WSSU: up to $5,000 per semester or $2,500 per summer, up to 5 terms. MS in nursing at WSSU: up to $5,000 per semester or $2,500 per summer, up to 4 more terms, if you enroll within two years after the WSSU BSN. Loans can cover tuition, fees, books, and completion costs.

Higher pay and protection for school leaders

Beginning July 1, 2026, assistant principals are paid the teacher “A” schedule at their step plus 19%. A one‑year provisional assistant principal certificate counts for step placement. Principals who sign a recruitment or retention supplement keep that supplement through their contract, up to 36 months, even if eligibility later changes.

Higher pay for principals and administrators

Qualifying principals who finished a 36‑month recruitment supplement get $20,000 per year, paid monthly, for up to 36 more months while staying at the same school. Starting July 1, 2026, assistant principals with six‑year certification get $126 per month and those with doctoral certification get $253 per month. For 2026–2027, assistant principals are paid the highest of the schedule amount, their protected 2016–2017 pay plus eligible longevity, or their 2016–2017 pay. Central office leaders with six‑year or doctoral certification also get $126 or $253 per month starting July 1, 2026.

More forgivable loans for Teaching Fellows

Beginning in 2026–27, all Teaching Fellows in approved teacher programs receive a forgivable loan up to the amount set in State law. Loan forgiveness follows the program’s qualifying‑teacher rules.

More PESA help for disabilities

The state raises funding for Personal Education Student Accounts (PESA) for children with disabilities. Funding steps up yearly: $95.2 million in FY 2027–2028, rising by $1 million each year to $100.2 million in FY 2032–2033 and after. This supports more families and services under PESA.

Severance option for older tenured faculty

UNC campuses may offer severance to full‑time, tenured faculty who are at least 55 and eligible to retire under TSERS or vested in ORP, and not on disability or workers’ comp. The payment equals the faculty member’s prior‑year base salary. Schools may also pay an amount equal to 12 months of the employer health premium if the person is not eligible for full retiree health coverage. These payments are not counted for retirement contributions.

TeachReadyNC paid teacher apprenticeships

TeachReadyNC creates teacher apprenticeships run by DPI with ApprenticeshipNC. Each funded apprentice can get up to $7,500 a year as a salary supplement and up to $5,000 for cost of attendance after other grants, plus up to $5,000 for the apprentice’s supervisor. Apprentices must have a bachelor’s, be in an educator prep program, file the FAFSA yearly, work full‑time with a supervisor, not be the teacher of record, limit subbing to 8 hours weekly, and finish within three years. If funds are short, DPI funds fewer positions but keeps the per‑position amounts.

Refunds for high elevator permit fees

Eligible applicants pay no more than $25,000 for a new or alteration elevator construction permit. The Labor Department reimburses the amount paid above $25,000. To qualify, you signed the contract on or before July 7, 2025 and applied for the permit by July 1, 2026, and you submit required proof.

More money for state buildings, parking

SCIF caps rise for several state projects. State Agency Lease: up to $5.3 million. Wilmington Street parking deck: up to $65 million. General Assembly Education Campus: up to $330.1 million. OSBM flexibility funds cap: up to $185 million. These are maximums; higher amounts need legislative approval.

Big funding for roads and transit

For 2026–2027, the state funds the Highway Fund with $3.38 billion and the Highway Trust Fund with $2.57 billion. Maintenance gets $2.22 billion, and strategic project funding gets about $2.30 billion. DOT’s contingency money goes to rural and small‑urban projects, needs the Secretary’s approval, and does not expire at year‑end. DOT must submit an eight‑year cash‑flow plan by March 15, 2027, and consider selling unused property. The law also sets maximum Highway Fund spending for three projects: $18 million (Manns Harbor water), $60.1 million (Wake yard), and $32.1 million (Jones yard).

Major funding for state IT modernization

The state authorizes and funds large IT upgrades across agencies. Examples include $185 million for K–12 school business systems and $208.9 million for community college ERP, with FY 2026–27 allocations. It also sets aside $153 million plus $4.133 million for an IT Reserve and transfers money to agencies like NCCCS ($25 million) and DIT ($70.8 million). Federal match funds are moved to environmental projects and to the IT Reserve to support these upgrades.

New HQ and hangar projects funded

The State Highway Patrol headquarters has a new capital authorization of up to $120 million for 2025–2027. A Greensboro National Guard hangar has a new authorization of up to $125 million for 2025–2027. Any higher amounts need new legislative approval.

Piedmont Triad airport and site work

The state provides $133.9 million one time for the Piedmont Triad airport site. It also gives $15 million each year in 2025–2027 to buy up to 150 acres for the project. Site work gets $45 million in 2025–2026 and $50 million in 2026–2027. DOT receives $7.9 million in 2025–2026 and $13.7 million in 2026–2027 for airport roadwork and may use progressive design‑build or similar methods. Another $35 million in 2025–2026 and $55 million in 2026–2027 goes to build a manufacturing and R&D facility owned by the Authority.

Big Medicaid funding and oversight

For FY 2026‑2027, the state provides $7.456 billion for health benefits, including Medicaid. It also creates a $333 million Medicaid Contingency Reserve and transfers $200 million to help pay the State share of Medicaid costs. The state can spend federal Government Efficiency Grants to improve Medicaid eligibility and community‑engagement systems. It adds $1.503 million each year for data analytics to fight fraud and recover payments. DHHS can use $12.8 million from Part 3 receipts and up to $10.75 million from Part 2 receipts for Medicaid in FY 2026‑2027, starting the first assessment quarter after this law takes effect.

More TANF and Work First funding

For FY 2026‑2027, the state allocates $331.9 million in federal TANF funds for Work First, county grants, child welfare, subsidized child care, NC Pre‑K, and transfers. County block grants get $80.1 million, and Electing Counties keep last year’s Work First funding if there is enough money for Standard Counties. The TANF State Plan for Oct 1, 2025–Sept 30, 2028 is approved, and Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson are Electing Counties. TANF Emergency Contingency funds of $34.3 million are set for subsidized child care.

New children’s hospital gets funding

The state provides $208.5 million to build a new children’s hospital in the Triangle, including behavioral health care. The money does not expire and stays available until the project is done. DHHS must disburse funds to the nonprofit within 90 days of this law.

Big boost to school funding in 2026

For FY 2026–2027, the Education Lottery Fund provides $1.1435 billion, including $257,311,891 for school transportation. $56,567,388 from prior‑year lottery revenue moves to school transportation on June 30, 2026. The Civil Penalty and Forfeiture Fund provides $247 million: $32,493,768 for driver education and $196,506,232 for the State Public School Fund. The Indian Gaming Education Fund provides $19 million: $10 million for Instructional Materials and $9 million for Classroom Materials. The State also adjusts special education funding during the year to match the required federal headcount. In 2026–2027, the state prioritizes grants for Career and Technical Education centers that serve a whole school unit.

K–12 schools get $12.5 billion

For 2026–2027, the state provides about $12.5 billion to the Department of Public Instruction. This funds K–12 school operations and programs statewide.

Universities get major building funds

SCIF caps rise across UNC campuses. Poe Hall (NC State) rises to $185 million for demolition/design/construction. NC State’s business school rises to $9.5 million and Mann Hall renovation to $40 million. ASU’s Peacock Hall rises to $45 million and Hickory Campus to $79 million. ECSU’s Sky Bridge rises to $7.5 million; NCCU’s Edmonds Classroom to $19.499 million; NC State’s nuclear study/reactor work to $16 million. These are maximums; higher amounts need legislative approval.

Big incentive deals and reserve funding

A project counts as a qualifying transformative deal only if it commits at least $4.5 billion in investment, creates at least 14,000 jobs, and pays an average of at least $89,340. Contracts must include performance rules and require the company to repay a proportional amount if it fails to meet them. The state also sets up a $170.9 million reserve, sending $12 million to the community college system and $25 million to Commerce for economic development.

$200 million to repair state buildings

The State authorizes up to $200 million for repairs and renovations for state agencies outside UNC in 2025‑2027. Any single non‑UNC project not otherwise authorized in this law cannot exceed $15 million. Funds must be used under the State’s repair and renovation rules.

Big push to fix UNC campuses

The law authorizes up to $200 million from the State Capital and Infrastructure Fund for repairs and renovations across UNC in 2025‑2027. It also authorizes up to $20 million for NC State project UNC/NCS26‑1. These funds are prioritized under state repair and renovation rules.

Long-term road funding forecasts set

The Legislature sets five years of expected Highway Fund revenues: $3.495 billion in FY 2027‑28, $3.697 billion in FY 2028‑29, $3.750 billion in FY 2029‑30, $3.811 billion in FY 2030‑31, and $3.878 billion in FY 2031‑32. It also sets five years for the Highway Trust Fund: $2.648 billion, $2.750 billion, $2.814 billion, $2.893 billion, and $2.973 billion for the same years. DOT and OSBM must create a 10‑year revenue forecast to guide five‑year budget cash flows, the statewide transportation plan, and debt capacity.

State budget and big reserves for 2026–27

The law funds state operations at $34.374 billion for FY 2026–2027. Total General Fund resources are $35.374 billion, leaving a $1.0 billion balance. It adds $450 million to the Savings Reserve. A $1.325 billion Stabilization and Inflation Reserve supports schools, corrections, community colleges, SBI, and more. It sets aside $200 million for regional economic development. It also reserves $350 million for emergencies and disaster relief, and directs added amounts to the NC National Guard and OSBM.

Bigger cap for major job grants

The Department can make up to nine Job Maintenance and Capital Development Fund agreements. The total cap rises to $209 million. The yearly cap per agreement rises to $11 million, with a special exception that lets pharmaceutical manufacturing employers exceed that annual cap.

Cap on state-funded nonprofit salaries

State money can pay no more than $140,000 of any one nonprofit employee’s yearly salary. This limit also counts interest earned on those State funds. Any pay above $140,000 must come from non‑State funds.

Lose state aid and in-state tuition after assault

Starting the term after conviction, a student convicted while enrolled of assaulting a State or local officer under G.S. 14‑33(c)(4) loses State‑funded scholarships or grants. The student also loses the in‑State tuition rate. This applies to offenses on or after December 1, 2026.

New monthly pay caps for district leaders

For 2026–2027, monthly salary caps apply to administrator categories I–VII, ranging from $7,800 to $10,424. Superintendent caps by category I–V range from $11,049 to $13,947 per month. Local boards place leaders in categories using student membership and within state‑funded limits.

Hospitals and DHHS deposit millions to State

DHHS deposits $171.4 million for FY 2025–2026 and $174.565 million for FY 2026–2027 to the State Treasurer. UNC Hospitals at Chapel Hill deposits $31.365 million. Other state psychiatric hospitals deposit amounts equal to uncompensated care payments. These are returns of nonfederal resources to the State.

Nursing home pilot: coverage shift and funding

During the nursing home pilot (through December 31, 2032), people on Medicaid who live in a facility for 90 days or more are not covered by prepaid plans. The state can adjust nursing‑home provider assessments to maximize federal match for daily rates and can make emergency plan changes to send extra money to homes during declared emergencies. Emergency funds do not count against the pilot’s spending limits.

2026–27 advanced teacher supplements

For the 2026–2027 school year, collaborative impact leaders get $10,000. Teachers who agreed by June 30, 2026 to serve as adult leadership teachers also get $10,000. Partial‑release collaborative leaders get $5,000, and teachers of distinction get $3,000. A teacher cannot receive more than one supplement in 2026–2027.

Advanced Teaching Roles pay and rules

ATR teachers get yearly supplements: $10,000 for collaborative impact leaders, $5,000 for partial‑release leaders, and $3,000 for teachers of distinction. If money is short, payments are pro rata; a teacher can get only one supplement at a time, and losing one is not a demotion. Each ATR school may name up to 15% of teachers as leaders and 5% as teachers of distinction, rounding up at one‑half; two partial‑release leaders count as one. In year one, a unit may designate the lesser of five schools or 40% of its schools; later years, the greater of three schools or 25%, capped at 10 per year. Units get a one‑time $150,000 planning grant and $15,000 per ATR school per year for up to three years; a term may be renewed once. The State Board reviews each ATR unit at least every five years, can give up to one year of probation, and must end ATR status if problems are not fixed; renewal decisions are due within 60 days.

Nursing Fellows loans and forgiveness

The Nursing Fellows Pilot gives forgivable loans to nursing students starting in 2027–2028 or 2028–2029 at Wayne CC, Western Piedmont CC, and WSSU. One‑third of the loan (including interest) is forgiven for each year you work as a qualifying nurse or nurse instructor, allowing full forgiveness after three years. Loans carry up to 10% annual interest, and cash repayment begins by September 1 after you finish, with all cash repayment due within 10 years (extendable to 12 years). Program leaders must set strict selection rules, post applications by December 31, 2026, and make initial awards by April 1, 2027. The law also sets how FY2026–2027 nonrecurring funds are split among community colleges and WSSU for loans and administration, with the State Education Assistance Authority running operations and enforcement.

More capital funds and project caps

The state must transfer $1.1392 billion to the capital fund (SCIF) in 2026–2027, and this transfer rises 3.5% each year after. The budget office must allocate repair and renovation money using the law’s priority rules. For non‑UNC agency repair projects under R&R26, any single project not otherwise authorized cannot exceed $15 million. By March 1, 2027, the budget office must set a standard all agencies use to estimate operations and maintenance costs on capital projects.

Firefighter pension buybacks and refunds

Firefighters and rescue squad workers age 35 or older can buy past service credit by paying the full actuarial cost plus any Board fee. Those under 35 can buy credit by paying the required monthly amounts plus Board‑set interest. Falling behind on monthly payments does not end membership; you can elect to end membership and get a refund of what you paid. For benefits paid on or after January 1, 2027, each month uses the amount in effect for that month.

Bots banned for online tickets

Using or building bots to buy tickets online is illegal. You cannot use multiple IPs or accounts to beat limits or bypass queues, codes, or access controls. The limit is the issuer’s cap or eight tickets, whichever is less. This applies to tickets sold or resold on or after October 1, 2026.

Clearer prices and tougher ticket rules

Starting October 1, 2026, ticket sellers and resellers must show the total price up front, including all mandatory fees and the maximum order fee. Listings must show seat location and whether it is an initial sale or a resale, and resales must link to the issuer’s site. Courts can fine violators up to $15,000 per day and at least $1,000 per ticket, with extra penalties for willful cases. A new law chapter now governs ticket sales, resales, disclosures, and enforcement.

Higher pension for NC Guard retirees

Starting January 1, 2027, eligible NC National Guard retirees begin pensions at age 60. With 20 years, the pension is $110 per month. Each extra year adds $11 per month, up to $220 per month. You need at least 15 years in the NC Guard and an honorable discharge.

One-time 2.5% payment for retirees

If you retired on or before September 1, 2026 and are alive on that date, you get a one‑time payment equal to 2.5% of your annual retirement allowance. The payment is made as close as possible to October 15, 2026. If you die before payment, your legal representative receives it. The payment is not prorated by retirement date.

Wildfire risk reduction grants

The state provides $7 million to reduce wildfire risk in the affected area. Funds pay for fuel management and other wildfire reduction work. Usual forest development cost‑sharing is waived for projects paid with these dollars.

Child care aid for noncitizen families

Legally present noncitizen families can get child care subsidies if they meet other rules. Families living in the State illegally are eligible only if the child is in foster care or child protective services, is developmentally delayed or at risk, or is a U.S. citizen. All other program rules still apply.

Higher child care subsidy payments statewide

Starting July 1, 2026, subsidy payment rates rise to the 75th percentile of the 2023 market study for 3–5 star centers and homes. In counties below the State rate, payments use the statewide 75th percentile from the 2021 study as a floor. This helps families using subsidies access higher-rated care and more options.

Higher pay for Innovations caregivers

The state adds $21.3 million each year starting in FY 2026–2027 to raise provider rates under the NC Innovations waiver. This is meant to boost hourly pay for direct care workers. It covers workers employed by enrolled providers and those billed through approved financial managers under self-direction.

In‑home help to keep families together

The state creates Intensive Family Preservation Services statewide to help families when a child is at imminent risk of removal, and in some abuse cases without imminent risk. The program uses standard risk criteria and focuses on keeping children safely at home. DHHS also requires funded providers to track 6‑month follow‑ups, outcomes 12 months after services, and other data to improve results.

More funding for child welfare services

Counties receive $21.18 million (TANF) for child protective investigations, foster care, and adoption supports, while keeping local CPS spending at least at 2012–2013 levels. The state adds $4.00 million to the Special Children Adoption Fund, $5.04 million (SSBG from TANF) to replace lost CPS state funds, and $1.58 million (SSBG) for Child Advocacy Centers. It reserves $500,000 within teen pregnancy funds for youth in foster care or juvenile justice, provides $1.40 million (TANF) for social worker training and in‑home services, and gives SSBG grants to four nonprofits without the usual 25% match.

More funds for mental health care

Starting July 1, 2026, the law funds $39.6 million for community mental health services. It adds $80.2 million for substance use prevention, treatment, recovery, crisis work, and veterans programs. It also provides $4.9 million for preventive health, including HIV/STD prevention, oral health, and injury prevention.

More mental health help in child care

The state gives $7.3 million one time in 2026–2027 to expand mental and behavioral health supports in child care and out‑of‑school programs. Funds supplement Smart Start spending and stay available until used. It also funds a $350,000 one‑time study on liability insurance options for child care providers, with findings due by May 1, 2027.

More NC-grown food for food banks

The state provides $9.1 million one time in 2026–2027 to buy North Carolina farm products for food banks. Most funds buy food and cover distribution for specified food banks. $100,000 helps Feeding the Carolinas coordinate purchases.

More schools join free‑meal program

DPI runs a state incentive so more schools use the federal Community Eligibility Provision. Applications are due by June 1 each year; DPI decides by July 15. The state pays the gap between federal free and paid rates for a portion of meals based on each school’s identified student percentage, without exceeding the free rate. Participating schools must offer an innovative breakfast option. Up to $500,000 a year can fund administration.

More support from Guardianship Assistance Program

The State can keep using foster care funds to pay Guardianship Assistance Program (GAP) costs. GAP can continue help until age 21 if the young person left GAP after 14 or turned 18 and chose to continue and meets school, work, or medical‑need rules. Legal guardians get room and board at the same foster care rate.

Psych beds reserved for medically indigent

Locally purchased inpatient psychiatric beds must serve people who are medically indigent. You are medically indigent if you are uninsured, not eligible for Medicare or Medicaid, and DHHS finds you cannot afford private insurance. Up to 40% of funds can pay for crisis, detox, or peer respite services for anyone, even if not indigent.

Safer vets homes and targeted grants

Purple Heart Homes gets $1 million one time and may use up to 9% for admin, with a report due September 1, 2027. The Independence Fund gets $1 million to expand Veterans Justice Intervention work with counties and first responders, with a report due June 30, 2027. If a state veterans home is found unsafe, the Department must send the assessment to lawmakers within 24 hours. The Department also files twice‑yearly reports listing repairs each home needs in the next 12 months.

Refunds for present‑use value loss

If your land lost present‑use value on or after January 1, 2026 and before this law, you can apply within 60 days of the law. If approved, the county reinstates the classification back to the revocation date and refunds deferred taxes paid. You may appeal a denial to the county board.

Temporary relocation help for repairs

The state creates a Temporary Relocation Assistance Program and funds it with $40 million. You qualify if you are in Renew NC Phase 1 or 2, or your area median income is 80% or less, you submit the request and grant agreement, exhaust other options, and show a hardship. Help starts after a notice to proceed and lasts the project’s standard time plus 21 days; furniture is provided when needed. Builders must cover cost overages and damages and face penalties for missed timelines. The agency reports on the program by September 1, 2026 and every six months after.

$1,750 bonus for school support staff

Locally and federally funded school nutrition and custodial workers receive a one‑time $1,750 bonus. The state sets aside $17.0 million to pay these bonuses.

3% raises for public employees

Beginning July 1, 2026, many State‑funded employees get a 3% raise. Community college faculty and staff get 3%. UNC SHRA and EHRA employees get 3%. Legislative nonelected employees get 3%. K‑12 central office staff get 3%, and 12‑month noncertified school employees get 3% (others receive equitable adjustments).

Adult diploma and job skills path

The Workforce Diploma Program starts in 2026–2027. If you are 21 or older, live in North Carolina, and do not have a high school diploma, you can enroll. It offers competency‑based courses to earn a diploma and gain career and technical skills. The State hires qualified third parties to run the program statewide.

Advise NC college access help

The State Education Assistance Authority starts the Advise NC College Access Initiative. Advisors serve high‑need or underserved regions. State funds flow only with a 1:1 non‑State match. The Authority may use a portion for real admin costs and must report yearly, with an interim report due April 15, 2027.

Bonus for local sworn officers

Sworn local law enforcement officers employed on June 30, 2026 receive a one‑time $1,750 bonus paid about October 15, 2026. Part‑time officers get a prorated amount. The SBI administers the bonuses and reports by December 15, 2026. The bonus does not count toward retirement pay.

Broader state worker raises, higher caps

On July 1, 2026, the law applies the act’s salary increases to most State workers, including permanent full‑time and part‑time officials, employees under the State Human Resources Act, exempt positions, and hourly State employees. Also starting July 1, 2026, Council of State agencies and the State Controller can set pay for exempt managers and policymakers up to 30% above the normal maximum.

College cost help for foster youth

The state funds the full “cost of attendance” for certain students with foster care ties. Help is available for youth who age out, youth who exit to a permanent home under GAP, and special needs children adopted after age 12. The State Education Assistance Authority manages these funds.

Construction training and job support

The law provides $1 million one time in 2026–2027 to CAGC Foundation for construction careers. Funds cover outreach, coaching, employer grants for internships and apprenticeships, individual financial help for apprenticeships or trade programs, and eight‑week work‑based learning at community colleges. Priority groups include women, minorities, veterans, low‑wealth people, and people who were previously incarcerated.

Free fast-track training for child-care teachers

Community colleges run free, two- to three‑week academies (up to 8 hours a day) to prepare lead teachers. Each academy aims for at least 10 students (goal 15) and includes screenings, background checks, and fingerprinting. Graduates earn the NC Early Childhood Credential or a provisional credential so they can work right away. Johnston and Wayne must offer the pilot, and 10 more sites are chosen across all four regions. Local partners may pay a one‑time completion stipend of at least $150. If you start full‑time as a lead teacher within three months and finish a full 12 months at the same program, the State pays a one‑time $500 stipend.

Free lead teacher academies

The State expands child care workforce academies into free Career‑Ready Lead Teacher Academies. NCPC gets $1.5 million one time in 2026–2027: $1 million for tuition and $500,000 for participant stipends. Local partnerships must provide a 25% local match. Community colleges will align training so graduates meet the North Carolina Early Childhood Credential requirements for lead teachers.

Free period products and fair school meals

Schools that opt in get free feminine hygiene products for grades 6–12 when funds are available. DPI must set an annual opt‑in process and contract with the Diaper Bank of North Carolina to supply products, split by the number of female students. Schools must offer the same meal choices to all students, no matter pay status, and cannot punish students for unpaid meal debt. Schools may still charge for optional extra items.

Grants for after‑school help starting 2027

Beginning July 1, 2027, the ELISS grant program funds extended learning and student support services for at‑risk students. Nonprofits, including those working with school districts, can apply. The program gives priority to services in low‑performing schools.

Heart‑safety plans and AEDs in schools

Every public school unit must create and review a cardiac emergency response plan each year. The State Board’s rules require at least one AED in each school, placed for use within 3 minutes, easy access without a key, staff training, drills, and maintenance. Governing boards must adopt these plans. Staff and authorized volunteers who give emergency care under a plan are immune from most lawsuits, except for gross negligence or intentional harm.

Higher pay floors for college faculty

Starting July 1, 2026, nine‑month, full‑time community college faculty must be paid at least: $44,414 with a vocational diploma/certificate or less; $45,032 with an associate; $47,711 with a bachelor’s; $50,088 with a master’s/education specialist; and $53,515 with a doctorate. No full‑time faculty can be below their degree minimum. Part‑time minimums are prorated from these amounts.

Legislative staff pay set for 2026

Starting July 1, 2026, each principal clerk is paid $137,954 per year and keeps permanent employee benefits. The sergeant at arms and the reading clerk in each house are paid $544 per week plus subsistence at the member daily rate and one round trip of mileage. Sergeants at arms may get extra pay with leadership approval.

More career and tech learning options

Schools may partner with SparkNC so students can earn up to four elective credits; finishing a high‑tech accelerator meets the computer science graduation rule. The state funds a CTE modernization grant program (up to $2 million in 2026–27) with approved providers by October 1, 2026. A Homebuilding PACT grant helps pay for pre‑apprenticeship curriculum, with priority for low‑wealth areas and schools serving many at‑risk students or students with disabilities. For 2026–27, robotics grants can provide up to $15,000 per high school for kits, coach stipends, fees, and transportation. A pilot requires 7th graders in 12 schools (2026–27 and 2027–28) to make and update career plans with parent notification. In 2027–28, one high school runs a wallet pilot that gives up to $395 per participating student for approved education costs.

More flexibility for military students

Military‑connected students who are nonresidents only because of military orders can apply for scholarships starting in 2026–2027. They can receive first‑semester funds before proving residency, with documentation of orders required. If regular funds run out, the Authority can use reserve money to cover these awards and must report the spending.

More math time, testing, and help

Low‑performing schools must give K–8 students at least 60 minutes of math a day. These schools must also give a K–8 math screening at least three times a year; the vendor is picked by January 15, 2028, and tests start in 2028–29. Teachers and parents get results within 15 days. If a student shows big math difficulty, the school must create a Mathematics Success Plan and keep it until the student reaches grade level or finishes 8th grade. Parents are notified when a plan is made.

More support for deaf and blind students

Three separate state agencies now run the Governor Morehead School for the Blind, the Eastern NC School for the Deaf, and the NC School for the Deaf. Hearing early‑learning services are split by each deaf school’s geographic boundary. Each deaf school must provide early intervention and family support within its boundary, directly or by contract. For 2026–27, each deaf school gets $750,000 to contract with Beginnings for early intervention services; Beginnings must report by April 1, 2027.

More support for teacher apprentices

ApprenticeshipNC must report by December 31, 2026 on grants, wage subsidies, and tax credits to grow apprenticeships. A school unit can convert one teacher position per apprentice into cash equal to the first‑step teacher salary plus benefits to pay apprentice salaries and up to $5,000 per year to teachers who take more students. From the $1,000,000 TeachReadyNC funds, up to $150,000 a year can help units that ran the 2025–2026 Teacher Apprentice program keep supporting eligible apprentices and teachers. DPI must report by May 15 in any year it provides these funds.

NC Pre‑K eligibility and class rules

NC Pre‑K serves children who are age 4 by August 31. Income limits are set up to 75% of the State median income, but up to 20% of seats can go to higher‑income children with risk factors. Children of service members ordered to active duty within 18 months (past or next) or injured/killed on duty are eligible. Classes must have at most a 1:10 staff‑to‑child ratio, up to 20 children, with at least a teacher and a teacher assistant.

New IDD job training at colleges

Up to 25 community colleges will offer programs for people with intellectual and developmental disabilities. The programs include micro‑credentials, on‑the‑job training, apprenticeships, and job supports. The goal is better employment outcomes. The rollout depends on available funding.

New pay tables for state officers

Starting July 1, 2026, correctional officers, State Highway Patrol, SBI/ALE officers, and probation/juvenile counselors move to experience‑based pay tables. Example entries include Correctional Officer I at $42,512 (0 years) and Correctional Officer III at $61,108 (6+ years); Highway Patrol from $63,250 (0 years) to $92,290 (6+). If your current salary is higher than the table amount, you get the across‑the‑board raise instead.

New principal license and paid internship

A five‑year renewable principal license is available to applicants with a bachelor’s degree, an approved prep program, at least four years as a licensed educator, and a qualifying portfolio. Principal interns get a 10‑month stipend equal to the higher of the beginning assistant principal salary or the teacher salary they would earn, if funds are available. Providers must certify eligibility, and DPI may use State Public School Fund dollars if needed. DPI reports each year by February 15.

New teen path to child care jobs

The state creates a Provisional Early Childhood Credential for 16–17 year olds who finish an approved course or lead‑teacher academy. With it, teens can lead groups in out‑of‑school and summer programs under set ratios: 1:10 if a 5‑year‑old is present, and 1:14–16 for ages 6+. No group can exceed 25 kids; larger programs must split groups with separate supervisors. Agencies must embed required health and safety trainings into courses and offer micro‑credentials by March 31, 2027. When a provisional holder turns 18 and has a high school diploma or equivalent, the Division issues the full credential so they can be a lead teacher in any licensed child care program.

One‑time bonus for state employees

Permanent state‑funded employees employed on June 30, 2026 get a one‑time bonus paid about October 15, 2026. It is $1,750 if your salary was $65,000 or less on June 30, 2026, or $1,000 if it was higher. Part‑time permanent employees get a prorated amount. This bonus does not count toward retirement pay.

Patriot Star family scholarships

The law creates the Patriot Star Family Scholarship Program. When funded, two nonprofits will award scholarships to eligible children, spouses, and some disabled veterans. You must be a North Carolina resident when paperwork is completed and attend an approved school. Service conditions apply, and some cases require a VA disability rating of 50% or higher.

Pay boosts and bonuses for school staff

Teachers paid by the State get a one‑time bonus by October 31, 2026: $500 for 0–15 years or $1,000 for 16+ years, pro rata for part‑time. School nutrition and custodial staff get a one‑time $1,750 bonus by October 31, 2026, pro rata for part‑time. For 2026–2027, the State funds local salary supplements, up to $5,000 per State‑funded teacher, with local boards deciding how to divide the money. Principals in 2026–2027 get at least their schedule pay or their 2016–2017 salary baseline (with current longevity if applicable). Starting January 1, 2027, a consolidated teacher bonus program pays bonuses each January for advanced‑course, CTE, and growth teachers if funds are available.

Per‑student funding for the regional school

State money follows each child to the regional school at the average per‑pupil amount across the service area. The school also gets extra funds for each child with a disability and each child with limited English proficiency. It receives an amount equal to the average local current expense share per student. If a child with disabilities leaves within the first 60 school days, the extra disability amount is prorated and returned.

Seamless high school‑to‑college skills

The Community College Seamless Skills Initiative connects high school and community college. Students can earn dual credit, meet computer science requirements, and get credentials for tech jobs. Fayetteville Tech and Wilkes Community College will partner to run it.

Stronger reading help for young kids

Schools must give K–5 students an Individual Reading Plan if early tests show reading trouble. The plan lists skill gaps, goals, progress checks, extra supports, and uses Science of Reading methods. Parents of 4th and 5th graders get a timely written notice if the child is not on grade level and may be retained unless a good‑cause exception applies. K–5 reading data must be sent in a uniform format that works with EVAAS to study growth. Starting July 1, 2026, every NC Pre‑K child gets a dyslexia screening, the results go to the kindergarten teacher, and staff get training on dyslexia support.

Lower NC income tax rates

State income tax rates drop to 3.99% in 2026, 3.49% in 2027–2029, 3.24% in 2030–2032, and 2.99% after 2032. If General Fund revenue beats set targets in later years, the rate can fall another 0.25 points, but not below 2.49%. Starting with 2025 returns, itemizers can deduct gambling losses allowed under federal rules that were not already subtracted in federal AGI.

Faster private road and bridge fixes

Emergency Management must speed up private road and bridge repairs and allow faster contracting methods. DOT creates simpler private bridge standards within 60 days while keeping safety. The state will pre‑approve contractor pools and use standard designs to move projects quicker.

More stability and stipends for child care

Graduates who work in a licensed child care facility or start a licensed family child care home are eligible for completion and post‑employment stipends. NC Pre‑K contractors must issue multiyear contracts to licensed private centers that run NC Pre‑K classrooms. These changes give providers steadier income and families more predictable seats.

Broader uses for CDBG business grants

CDBG Economic Development funds can be granted for more uses that meet HUD rules. Eligible uses include buying property, demolition and rehab, removing disability barriers, public improvements, loans and grants for construction, help for for‑profit and nonprofit businesses, and technical help.

Child care centers can split admin credential

Licensed child care centers can combine two staff members’ education and experience to meet Level II/III or the Administration Credential. One person must meet business coursework or experience rules. The other must have an early childhood degree, handle curriculum and compliance, and be on‑site for required hours. Centers get the same quality‑rating credit as if one person met all rules. Certain course waivers are allowed.

DMV adds online vendors for registrations

DMV must contract with at least two online registration vendors. Those vendors can work with dealers, fleets, leasing, and rental companies, including out‑of‑state, to file titles, plates, renewals, and record updates. DMV cannot unreasonably deny contracts or access.

More film grants plus loyalty bonus

A Micro‑Budget Production Grant Fund helps NC‑headquartered productions with $50,000–$1,499,000 in qualifying costs. The base grant equals 20% of costs up to $100,000, with extra 5% or 3% bonuses for hiring NC residents or filming mostly in tier one or two areas. At least 75% of filming must be in North Carolina. A Multi‑Production Bonus adds 5% if a company has two or more qualifying productions totaling at least $80 million and starts new ones within 24 months.

No CPA needed for adult‑care cost reports

Beginning July 1, 2026, adult care homes do not have to hire a CPA or independent accountant to meet cost‑reporting rules. The Department can still require a CPA if it finds a grossly inaccurate report and may audit reports.

Clear timelines for state-directed grants

The law sets payment schedules for one‑time grants to non‑State groups and keeps funds from reverting until June 30, 2029. Small grants (≤ $100,000) may pay in one lump sum. Mid‑sized grants pay monthly or quarterly, and larger grants pay in 25% steps tied to spending. Agencies must send first payments within 100 days when requirements are met. Recipients must request the first payment within one year or funds revert.

Law enforcement powers and systems updated

SBI officers now have the statutory powers listed for other covered State officers. The Criminal Justice Information Network Governing Board is eliminated, and its remaining funds move to the SBI. The Alternatives to Pre‑trial Detention Fund is established within the SBI to build a domestic violence notification system, and the SBI may retain up to 2% of program funds each year for administration. Starting October 1, 2026, the SBI must report program results annually.

More funds for police and Guard facilities

The State raises SCIF caps for public safety buildings. State Highway Patrol auditorium: up to $59.385 million. DPS cadet dorm and training building: up to $77.769 million. NC National Guard Constable Building: up to $29.429 million. Any larger amounts need General Assembly approval.

More judges for complex family cases

Starting July 1, 2026, the Chief Justice appoints three special superior court judges for complex family financial cases. Each serves up to eight years unless they leave earlier. The mandatory retirement age for these judges is 78.

New Council runs prosecutions statewide

The law creates an independent Council of District Attorneys with its own budget. It moves district attorney offices and the Conference to the Council and sets a nine‑member Council. A licensed‑attorney Executive Director runs operations, may contract and accept funds, and can opt in or out of AOC services (with cost sharing). The Council can hire resource prosecutors and at least one legal assistant per district and must run statewide training. It operates an Internal Audit Division that follows professional standards and may convert contractors to permanent jobs. Legal advice is confidential. The Council may provide legal defense for covered officials, with reports at $75,000+ settlements or $1,000,000+ claims, and judgments are paid by the State. Starting July 1, 2027, a consent judgment binds the State only if the Executive Director signs it.

New State Settlement Reserve Fund

The State Controller creates a Settlement Reserve Fund. It holds clear proceeds from settlements and court orders that are payable to the State or a State agency.

Safer prisons and protected IT links

The state can use funds to replace fire alarm and suppression systems at eight correctional facilities. The Department of Adult Correction may not sell any prison facility until July 1, 2028, unless a prison has been closed since July 1, 2016. Prison IT upgrades must keep current links to other State systems, including the health information exchange. Unused study funds at the Department of Justice move to replace high‑mileage vehicles in Adult Correction.

Sex offenders barred from seasonal camps

Starting December 1, 2026, people who must register as sex offenders for listed crimes cannot knowingly be at places meant mainly for minors. This includes seasonal child care camps while they are operating. The rule applies to offenses committed on or after December 1, 2026.

Stronger state audit powers

The State Auditor can assess IT security at state agencies and demand written responses. Starting October 1, 2026, agencies must get the Auditor’s written OK before hiring auditors who affect the statewide financial report. The Auditor can bring in resource prosecutors to pursue financial crimes found in audits. The Auditor must audit Adult Correction and finish a full facilities assessment by June 30, 2027.

Tougher laws on trafficking and metal theft

Starting December 1, 2026, judges may approve interception orders to investigate money laundering and adult human trafficking felonies. It is also a Class C felony to damage property to steal nonferrous metals when it disrupts critical infrastructure like power, water, communications, transport, public safety, or hospitals. Courts must order restitution for repair, emergency response, temporary fixes, traffic control, permitting, and documented customer credits or penalties.

Annual counts of deaths by police force

The SBI must collect, keep, and publish each year the number of deaths from police use of deadly force. The data must show counts by law enforcement agency.

Board to manage lawyers’ trust funds

A nine‑member NC IOLTA Board under the State Bar now administers interest from lawyers’ trust accounts. Members have staggered three‑year terms and an eight‑year service limit. Appointments come from the State Bar Council, the Chief Justice, and the General Assembly.

Crime for unauthorized critical-infrastructure metals

Beginning December 1, 2026, knowingly possessing nonferrous metals used for critical infrastructure without authorization is a Class 1 misdemeanor. A second or later violation is a Class H felony. The law lists who may lawfully possess these materials and requires they not know the metals were unlawfully obtained.

Safer surgeries with smoke evacuation systems

Hospitals and ambulatory surgery centers must use smoke evacuation or filtering during procedures that create surgical smoke. Hand‑held smoke evacuation devices qualify. The health department can take action if a facility violates this rule.

Statewide identity and login standards

The State CIO sets one set of rules for identity proofing, multifactor logins, and access controls across agencies. Agencies must follow these rules unless the CIO gives a written waiver. Within 12 months of the section taking effect, the IT department must review current systems and, if they fall short, run competitive bids to fix gaps.

Bigger grants for volunteer fire departments

For applications on or after July 1, 2026, equipment grants can be up to $50,000 and other uses up to $100,000. If a department gets $50,000 or less a year from local government, no match is required. If it gets over $50,000 up to $75,000, it must match $1 for each $3 of grant funds. If it gets over $75,000, the match is dollar‑for‑dollar. Up to 1% of the Fund can pay for administration.

Controls on highway construction prices

DOT sets baseline unit prices using a three‑year rolling average, adjusted by the National Highway Construction Cost Index. Since 2016, no Highway Division may exceed a 10% variance over that year’s baseline. If a division goes over, DOT must report by February 15 on the variance and how it will return to compliance. DOT can lower unit prices as efficiencies are achieved.

Ferry tolls fund new vessels

Tolls and route receipts from North Carolina ferries go into the Ferry Capital Special Fund. That money can pay for or supplement passenger vessel replacements on any ferry route, not just where the tolls were collected. Commuter pass receipts are shared based on trip counts.

Grants to cut PFAS in drinking water

The State Water Infrastructure Authority now awards grants to help local water and wastewater systems address PFAS and 1,4‑dioxane. This supports safer drinking water and related upgrades.

Hurricane Helene recovery money transferred

The State transfers $151.1 million to the Helene Disaster Recovery Fund. The money comes from existing appropriations and supports state recovery and relief work.

Limits on big water transfers

The State keeps a moratorium on new large surface‑water transfers and big increases until August 1, 2028. A transfer is significant if it adds over 15,000,000 gallons per day between river basins. No new or increased transfers out of the Cape Fear Basin are allowed. Emergency transfers from the Cape Fear Basin are tightly limited to 90 days, with up to two 90‑day extensions and must protect essential uses. An alternative is reasonably available only if it would not raise the recipient’s average monthly bill by more than 10%.

More funds for local recovery and development

The state sets aside $2.6 million for long‑term recovery groups in HUD‑designated hardest‑hit Hurricane Helene counties, split equally and used only for direct help. For FY 2027, $46.3 million in federal Community Development Block Grants is allocated across administration, neighborhood, economic development, infrastructure, and rural projects. Surplus admin and deobligated funds can support more grants or training when the State provides an equal match.

More help for floods and stormwater

DEQ can use a grant from the Coastal Federation to fund a temporary staffer who helps existing stormwater permit holders follow the rules. The law funds six time‑limited positions to carry out the State’s Flood Resiliency Blueprint. DEQ may help high‑hazard dam owners create downstream inundation maps for required emergency plans. The State also authorizes up to $33,531,090 for a DEQ water resources project in the 2025‑2027 budget.

More money for roads and rescues

Each year on or after October 1, any Scrap Tire Account balance over $300,000 moves to the Highway Fund. Electronic inspection authorization fees are split among the Highway Fund, the Volunteer Rescue/EMS Fund, and the Rescue Squad Workers’ Relief Fund using fixed dollar amounts per authorization (with higher amounts for large rental fleets). For FY 2026–27, DOT does not cut Powell Bill money; big cities get the same as FY 2020–21, and the rest goes to smaller cities by the usual formula.

More support for child support services

Child Support Services may keep up to 15% of its yearly federal incentive payments. The money must enhance centralized child support services and not replace State spending. The agency must consult counties on uses and continue rules for how funds are shared with county programs.

More support for veterans homes and guard

The state funds a new Fayetteville Veterans Home with up to $40 million. DMVA must repay $40 million to the state fund from the Veterans Home Trust Fund in $1–$15 million yearly amounts, starting the year construction finishes. The state also authorizes $6.6 million for a National Guard project and gives $5 million to Veterans Restoration Quarters for repairs FEMA did not cover. The Department may hire private operators for veterans homes for up to five years based on the most advantageous bid. The state will place Lincoln-quote plaques at all four state veterans cemeteries for up to $40,000 total.

More water projects get low rates

More projects now qualify for targeted low‑interest loans from State water and wastewater funds. Projects that connect failing septic systems to public sewers, are in state‑declared disaster counties, or unlock federal dollars are eligible. This applies to the Drinking Water and Wastewater Reserves and the State Revolving Funds.

New board rules for local pensions

The law creates a new LGERS Board. The State Treasurer chairs it, and members include local officials, a law enforcement officer, and fire/rescue representatives, with Senate confirmation for some seats. The Board meets at least quarterly, needs four voting members for a quorum, and pays $100 per day when it meets (plus expenses) for members not paid by the State. Clear conflict‑of‑interest, vacancy, and term‑limit rules apply.

PFAS research and water cleanup grants

State and local agencies must provide requested data and help to the NC Collaboratory within 30 days. The Collaboratory can set publication and data‑use terms, require revenue sharing on state‑funded IP, and accept outside funds. It studies whether to expand consumer fireworks (report due July 4, 2027). PFAS funds support research on detection, cleanup, and health impacts, and a PFAS biosolids study is due by January 31, 2029. PFAS mitigation dollars flow into the Emerging Contaminant Mitigation Fund to make water‑cleanup and monitoring grants.

PFAS testing and water system grants

The state requires PFAS testing at wastewater plants and industrial dischargers. Phase 1 ends by December 31, 2027, with a report by March 31, 2028. Phase 2 ends by December 31, 2028, with a public data report by March 31, 2029. A new Fund gives grants to public water and wastewater systems for sampling, treatment upgrades, emergency response, and help for major industrial users. A statewide water study focuses on Cape Fear, Neuse, and Catawba basins, with an interim report by December 31, 2028 and a final by July 1, 2029.

PFAS water and health help for firefighters

The law provides $15 million in 2026–2027 for PFAS research and cleanup tied to fire stations and firefighters. It can fund water studies, filters, temporary and long‑term water supplies, voluntary exposure studies, well sampling, gear deep‑cleaning pilots, and emergency drinking water support. The Collaboratory must report the funded work.

School maps and access for emergencies

Public schools must give local police digital schematics and keys or emergency access to main entrances. Schools must also share schematics, emergency response info, and mapping data with the Division of Emergency Management. The Center for Safer Schools will run a mapping program with U.S.‑created and stored digital maps that meet set standards, subject to available funding.

Stronger hazard mitigation powers and shields

The law clarifies that hazard risk management includes buying property for mitigation with State, federal, or philanthropic funds. Counties and cities can now lead and coordinate hazard plans that follow State and federal standards. Governments, emergency workers, contractors, and nonprofits get liability immunity for covered hazard actions when they follow the rules. This immunity does not cover willful misconduct, gross negligence, or bad faith. The liability protections apply to cases arising on or after January 1, 2025.

Safer money funds for local governments

Local governments may invest idle cash only in certified funds or SEC‑registered government money market funds that hold mainly U.S. government securities, aim for a $1.00 share value, and have top credit ratings. For funds tied to federal arbitrage rules, tax‑exempt participation must avoid arbitrage rules and taxable funds must provide rebate calculation services.

Better behavioral health access and data

If a regional mental health plan fails to manage hospital psych beds or pay on time, DHHS can hire another plan or pay hospitals directly. Agencies must improve data sharing for involuntary commitment so judges and law enforcement get real‑time bed and case info. Grants help behavioral health facilities connect to the state health data system. The law also provides $4,208,378 for early treatment of first psychotic symptoms in 2026–2027.

DHHS can redirect leftover ARPA funds

DHHS may move any unspent funds named in S.L. 2023‑134, Section 9B.9(a), to Child Welfare and Family Well‑Being, Mental Health/Developmental Disabilities/Substance Use Services, and Social Services. Uses must match the original purposes in that section.

Energy help and local services funded

For FY 2026‑2027, LIHEAP provides $140.4 million for energy help, crisis aid, county administration, NC FAST, and weatherization. The Social Services Block Grant provides $85.2 million for county services, child and adult protective services, food banks, and disability nonprofits. The Community Services Block Grant provides $23.5 million for community action, workforce programs, and local anti‑poverty services.

Faster help on high‑risk child cases

A statewide Child Welfare Case Escalation Team reviews high‑risk homes and helps counties act fast. Counties must submit an escalation form within two business days and fix urgent safety concerns the same day. The state also funds six staff positions with $550,000 yearly starting July 1, 2026, and provides $100,000 one time for training that will be available online.

Faster shifts in heating and crisis aid

The State can move Low‑Income Home Energy funds between heating help and crisis payments without prior consultation. Extra federal emergency funds can go straight to payments and must be reported when awarded. The Department may not spend these funds on anything other than assistance payments without first consulting lawmakers.

Funding for pregnancy support services

For 2026–2027, $3.95 million funds service grants to pregnancy centers, $1 million buys equipment and training, and $1.05 million runs CPCF’s Circle of Care. CPCF must set an open application process for NC pregnancy centers. The law also gives $3.29 million one time to Human Coalition to run its Continuum of Care Program for secular uses. Human Coalition reports by December 1, 2027 and every six months through December 1, 2028. DHHS reports by February 1, 2028 on program results.

Medicaid Transformation Fund closed, money moved

Effective July 1, 2026, the state closes the Medicaid Transformation Fund. The budget office moves the remaining balance to the Medicaid budget (Code 14445) to support the program.

More funding for health workforce training

The law provides $10 million one time in 2026–2027 to Area Health Education at UNC Chapel Hill. The money supports health education and workforce efforts, including work that helps rural access to care.

More help for opioid treatment and overdoses

The law boosts funding to fight opioid deaths and expand treatment. It moves $1.85 million in 2026–2027 into the Opioid Abatement Reserve and sends $14 million each year to the mental health division for substance‑use services. It adds $6 million one time for grants in hard‑hit counties and to buy and distribute overdose‑reversal medicines statewide. A working group reviews Medication‑Assisted Treatment grants, may spread funds to reach more places, and must consider all FDA‑approved medicines, including long‑acting shots. The state must issue an RFP within 90 days to buy intranasal and intramuscular opioid antagonists and support services. The RFP favors reliable U.S. manufacturers with proven state‑level shipping, tracking, and public transparency, using a best‑value selection.

More maternal and child health support

Starting July 1, 2026, the state provides $22.2 million for maternal and child health services for the year ending June 30, 2027. The Division also continues competitive grants to local health departments to fund proven programs that improve birth outcomes and early childhood health. By April 1, 2027, the Division reports a plan to set maternal levels of care and update neonatal levels, following national medical guidance.

More money to fight youth vaping

On June 30, 2026, the state transfers $22.5 million one time to the Youth Electronic Nicotine Dependence Abatement Fund. This money supports youth prevention and treatment programs.

Stronger checks on Medicaid billing

The State Auditor must coordinate Medicaid provider audits with DHHS to avoid duplicate reviews. Results are shared, suspected fraud is referred for investigation, and contractor fees are limited to a share of the State’s final recovery after all appeals. Federal recoveries are returned to CMS. These steps strengthen program integrity while limiting over‑auditing.

Stronger funding and access to psych beds

The state sets steady monthly payments to LME/MCOs and keeps overall service levels at least equal to 2024–25. Funds for local inpatient psychiatric beds use a two‑tier rate with an enhanced rate for high‑acuity patients, capped at the lowest State hospital average cost per day. Beds are distributed by need, and up to 40% of funds may support crisis, detox, and peer‑respite services. DHHS holds bed funds in a statewide reserve. LME/MCOs must send clean claims to DHHS within 15 working days and pay hospitals within 30 working days after DHHS pays.

Cities cannot annex large planned communities

Cities may not annex a planned community with at least 1,000 contiguous acres that already has municipal‑like services and access to police, fire, streets, and water/sewer. This protects those areas from annexation.

Home building code changes every six years

Comprehensive residential code updates now happen once every six years. Revisions take effect on January 1 after adoption, with at least six months’ notice. The first six‑year revision must take effect January 1, 2031.

More state funds for housing

The state transfers $35 million in FY 2026–2027 to the Housing Finance Agency to support housing programs. A new Rural Community Development grant category helps tier one and tier two areas and rural census tracts with housing repairs, public works, services, economic development, and technical help, with preference to tier one.

State match and home repairs after Helene

The state provides $450 million to cover North Carolina’s share of federal disaster recovery for Hurricane Helene. Up to $20 million of this can help cash‑flow the Temporary Relocation Assistance Program, with priority on the state share first. $35 million goes to volunteer disaster groups to repair and rebuild homes in the impacted area, with required reporting.

Stronger rights in local land-use cases

If rules change while your permit is pending, you can choose which version applies. When a city or county exceeds a clear legal limit, courts must order it to pay your reasonable attorney fees and costs. The law clarifies which actions count as land‑use decisions. For most zoning challenges, the time to sue starts when you first have standing. If you ask in writing and have standing, the local government must issue a binding written interpretation.

Stronger rights to challenge land rules

You can sue in superior or federal court to challenge local land rules and decisions. You do not have to appeal to the board of adjustment first. Associations that represent affected owners can sue for declarations but not for damages needing member‑by‑member proof. You now have three years to file, or from payment if you seek a refund of a tax, fee, or contribution. More approvals now count as “development permits,” and anyone with standing can appeal administrative decisions to the decision‑making board.

4-year network for competency-based learning

From FY 2026–2027 through 2029–2030, the state runs a Competency‑Based Education and High School Redesign Strategic Network. SparkNC chairs and supports the network across selected districts and colleges. Program funds do not revert and stay available through June 30, 2030.

Competency-based learning pilot in K–12

The Department of Public Instruction runs a statewide CBE Network to guide and support competency-based learning. DPI posts an application within 60 days, schools apply within 60 more days, and DPI selects 10 schools shortly after. Planning happens in 2026–2027 and instruction starts in 2027–2028. DPI picks a national, research-based vendor to train and support schools. Participating schools file quarterly progress reports, and DPI issues a final report by December 1, 2030.

Competency‑based learning grants and MGSD funds

The state runs a Competency‑Based Education (CBE) Innovation Grant and Network from 2026–27 through 2029–30. Each selected school gets $330,000 total, with $95,000 each school year for training; funds are available through June 30, 2030. Separately, Mooresville Graded School District receives $4,000,000 in 2026–27 to contract with CBE experts, hire one staff member, and support a vendor partnership; the funds stay available through June 30, 2029.

Digital credentials for Seamless Skills

Participating colleges must buy a credential system that uses open standards, protects privacy at NIST IAL 3, and runs in state‑controlled cloud hosting. The system must include a noncustodial mobile wallet and must not store personal data on a public blockchain. The System Office provides technical help. Fayetteville Tech and Wilkes co‑design the initiative with an expert group. One‑time funds of up to $2,750,000 go to Fayetteville Tech and $1,000,000 to Wilkes, available through June 30, 2030.

Help for fast-growing community colleges

The Enrollment Increase Reserve helps colleges that exceed budgeted enrollment. A college qualifies if FTE grows over 5% in certain courses or total FTE rises by more than 325 students. The State Board administers the Reserve, and the money does not revert. The State Board must also review and update workforce sector designations by July 15, 2029, and every three years after.

High-quality math materials and pilots

The Office of Learning Research identifies vendors of strong K–8 math materials and gives the list to DPI by April 30, 2027. DPI sends that informational list to school units by June 1, 2027. OLR runs pilot programs with named math vendors, sets grant and reporting rules, and studies results. Most of this section starts July 1, 2026, and key classroom parts start in the 2028–2029 school year. The NC Collaboratory reports on impacts by December 15, 2031.

More support for English learner students

The state creates a Limited English Proficient allotment. Funds are distributed using a three‑year average count of LEP students. Schools must use the money for teachers, assistants, tutors, materials, transport, and training for LEP students. These dollars must add to, not replace, local funds.

New funding and rules for school materials

Beginning July 1, 2026, the state creates an Instructional Materials allotment, and money given in FY 2026–2027 through FY 2028–2029 stays available until spent. The law defines instructional materials, library books, and supplementary materials so schools and families know what each term covers. Local school boards have sole control over supplementary materials and when to use them. Charter school boards also gain authority on July 1, 2026 to choose and buy instructional and supplementary materials.

New school safety grants in 2026–27

For 2026–2027, the Center for Safer Schools runs a grants program to improve school safety. Grants can pay for student crisis services, safety training, safety equipment and training, and help fund school resource officer grants. Public school units are eligible, and charter schools can get equipment grants.

One-time money for school AEDs

The state provides $4 million one time in 2026–2027 to help schools buy and install AEDs and train staff. DPI first gives $2,000 to each school that lacks an AED; if short, DPI pays pro rata. Any leftover money can replace old AEDs or fund training.

Schools must stock epinephrine and support diabetes

All public school units must follow State Board guidelines for individual diabetes care plans. Parents receive information about Type 1 and Type 2 diabetes at the start of each school year. Regional, charter, and laboratory schools must keep emergency epinephrine devices as required by law.

Start-up fund for high-cost programs

Community colleges can apply starting in 2026–2027 for funds to launch high‑demand, high‑salary programs. Each college may get one award per year, and funds stay available for two fiscal years. Colleges must match part of two‑year costs: 15% for FTE over 6,500; 10% for FTE 2,500–6,500; 5% for FTE under 2,500. The System Office may use up to $100,000 for administration and must report by December 1, 2027 and yearly after.

State invests in math curriculum and support

The state provides $10 million to buy and adapt a K–8 math curriculum to North Carolina standards and to build teacher and online materials, with a report due by June 15, 2028. It also provides up to $1 million to fund time‑limited positions through Wake Tech to support the Lighthouse Math Project in participating high schools. Those funds remain available until June 30, 2030.

Statewide digital college credentials system

In FY 2026–2027, the Community Colleges System Office will contract for a Credential Management System for all community colleges. It must support open standards, strong identity proofing (NIST IAL3), secure peer‑to‑peer verification, a noncustodial mobile wallet, and keep personal data off the blockchain. Up to $100,000 of nonrecurring funds in 2026–2027 may hire one full‑time staff member to run the program.

TANF increases go to child care

When federal Block Grant funding changes, the State must adjust within set rules. For the 2026–2027 fiscal year, any TANF funding increase goes only to the NC Child Care Subsidy program to pay for child care and cannot replace State funds. Allocation changes need budget office approval and must be reported to lawmakers before they take effect.

Teacher training programs must report yearly

Starting July 1, 2026, all educator preparation programs must file annual reports. Reports must show admissions, completions, licensure, employment, apprenticeship participation, and two‑year retention, with data broken down by race, sex, and ethnicity. This improves oversight and helps track program quality.

New split of sports betting taxes

Beginning July 1, 2027, sports wagering tax money follows set priorities. Up to $500,000 covers administration, and $1,000,000 goes each year to the Youth Outdoor Engagement Commission. Public universities get shares with percent limits and per‑campus caps. Thirty percent, up to $30 million a year, goes to the Major Events Fund. Money credited to North Carolina Amateur Sports no longer reverts to the State; the rest goes to the General Fund.

Airport grants and access rules

The state provides $32 million one‑time in 2026–2027 to listed regional airports for capital and access projects. The law also ensures airport authorities can comply with federal nondiscrimination rules tied to airport aid.

Conditional $118M for airplane plant

If the state awards a specific JDIG to an airplane maker in Guilford County, the law provides a one‑time $118.1 million in 2025–2026 from the Stabilization and Inflation Reserve. If that award is not made, no funds are paid.

Grants for barrier island backup fiber

Up to $15 million funds middle‑mile broadband to close fiber loops that serve barrier islands. A single grant cannot exceed $15 million, and the recipient must provide up to $1 million in matching funds. Projects must serve public and private end users, with priority for public safety and emergency communications.

Legislature must approve DIT service rates

The IT Department cannot change Internal Service Fund rates unless the General Assembly passes a law. The Department must publish fees, submit rates to budget and fiscal offices, and give agencies time to adjust budgets first.

More funds for UNC projects

State capital authorizations rise for several UNC projects. Western Carolina University’s engineering building authorization increases to $157.9 million. UNC Asheville’s Lipinsky Hall rises to $31.15 million. Fayetteville State’s parking deck rises to $12 million. UNC Board of Governors lease funds rise to $22.5 million.

Big grants open to large drug makers

Large pharmaceutical manufacturers can qualify for Job Maintenance and Capital Development Fund grants if they invest at least $2 billion, already employ 2,000 in the State, keep those jobs, add 500 in the project county, and the project supplies at least 60% of the site’s water and wastewater needs. Agreements may allow uneven annual payments, with a balance in the final year.

State funds aircraft facility at Global TransPark

The State provides $30 million for a flight training or aircraft MRO facility at the Global TransPark. The operator must invest at least $10 million. The Authority remains the owner; the operator leases the land and pays rent. The State’s obligation is capped at $30 million; the operator pays costs above that. Commerce may authorize the operator to contract for design and construction and reimburse costs.

Court and filing fees rise Dec 2026

Starting December 1, 2026: Court support fees are $177.50 in district court and $184.50 in superior court (both apply if a felony started in district court). Civil filing is $210 (superior), $160 (district), or $110 (magistrate). Designating to Business Court or Complex Family Financial Court adds $1,130. A $14 court telecom fee applies. The indigent defense cost remitted to the PAC Fund is $25. Filing for absolute divorce costs $125 (deposited to the Domestic Violence Center Fund).

Higher fee in complex family cases

If your case is designated a complex family financial case, there is one extra $1,100 filing fee per case. All parties split this fee equally. $0.95 of each fee goes to the State Bar. The fee applies to cases filed on or after July 1, 2026.

More data from sex offenders

People who must register must give detailed personal data, a current photo, and fingerprints to the sheriff on forms the Bureau supplies. They also must list student and job status and any online identifiers. The sheriff takes fingerprints at no charge.

Stricter steps to waive court costs

Courts can waive fines or costs only by a written order with findings and legal conclusions that show just cause. The court must mail notice at least 15 days before the hearing to every government entity directly affected. This rule starts December 1, 2026. It can make waivers less common and raise what many defendants must pay.

Counties can raise fire fees

Counties can charge higher yearly fees in fee‑supported fire districts. Example caps for single‑family homes range up to $2,000 now, and up to $2,400 starting July 1, 2027. Fees cannot exceed the cost of service. Properties more than six road miles from a rated 10 station pay 75% of the usual fee.

Guard bonuses don’t boost pensions

Bonuses paid to North Carolina National Guard members from this Act do not count as compensation for State retirement systems. This can lower pensionable earnings used to calculate retirement benefits.

Higher NC Promise nonresident tuition

Nonresident undergraduate tuition at NC Promise schools rises from $3,500 to $4,000 per semester. The higher rate applies to nonresident students who start in the 2027–2028 year. Nonresident students enrolled in 2026–2027 who stay continuously keep the old rate.

Proof of legal status for unemployment

The Division of Employment Security must verify that unemployment applicants are legally allowed to live in the U.S. before the first payment. The policy is in place by January 15, 2027 and follows federal law.

Scholarships now require NC residency

To receive a scholarship, a student must be a North Carolina resident when applying and at the start of each school year. This rule applies starting with applications for the 2026–2027 school year.

Teacher Apprentice grants end July 2026

On July 1, 2026, the Teacher Apprentice Grant Program is repealed. This ends that grant support for teacher apprentices and local units.

Limits on indigent defense pay and fees

The Office of Indigent Defense Services cannot change attorney compensation rates or fee schedules without a new state law. As of July 1, 2026, any increase to each fee set under G.S. 7A-458 is capped at $30.

Minority‑contracting rules rolled back statewide

The law repeals several statutes that supported minority‑ and women‑owned participation in state procurement. Agencies no longer consider compliance with those rules when choosing low, responsive, responsible bidders. Governments cannot set participation goals in design‑build and design‑build bridging notices. Local acts that allowed such goals are repealed, unless federal funding requires them. The State Building Commission no longer requires inclusion plans tied to those former goals in alternative contracting.

New $1,000 license for vapor retailers

Specialty vapor stores must get a specialty retailer license for each location. The license tax is $1,000 per location. With this license, the store does not need a separate retail dealer or vapor products license for that location.

Set fees for rental‑fleet inspections

For covered large rental vehicles, inspections cost $12.75 for safety only or $23.75 for emissions and safety. Electronic inspection authorizations cost $28.05 for safety only or $66.25 for emissions and safety. Multiply the per‑occurrence fee by how many inspections or authorizations you need.

New limits on IOLTA legal grants

The State bars IOLTA grants to groups that do immigration legal work. It also bars grants to groups that provide or support surgical gender transition procedures or puberty‑blocking drugs or cross‑sex hormones for minors. Grants are also barred to entities that ask the public to contact officials to influence laws or executive actions, except for narrow reporting and self‑advocacy exceptions. These limits apply until the State Bar adopts permanent revised rules.

Stricter rules on vaping product sales

Starting May 1, 2025, or when the public directory is posted, stores cannot sell consumable or vapor products not on the list. After a removal notice, retailers have 30 days to sell stock on hand or return it. First violation in 12 months: $500–$750, reinspection in 30 days, and a 30‑day suspension if licensed. Second or later: $1,000–$1,500 and possible license revocation. From October 1, 2026, law enforcement must report violations and the state keeps a public database. From December 1, 2027, illegal products may be seized and destroyed, with cleanup costs paid by the person they are seized from. Definitions expand to cover nicotine analogues and who counts as a specialty vapor retailer. At least one unannounced compliance check is required each year, with fast follow‑ups after violations.

Broader vehicle emissions testing areas

The state requires emissions inspections in areas the EPA says do not meet ozone or carbon monoxide standards when needed to meet federal law. It can also require tests in areas that now meet standards if testing is needed to avoid violating current or pending new standards.

Volunteer fire grants: match and reports

An eligible applicant can receive only one grant from this fund. For any grant amount over $10 million, the applicant must pay a 50% match on the excess. Grant recipients and administrators must follow the same reporting rules already required in law.

Withhold trash tax funds for noncompliance

If a local government does not follow required scrap tire and white goods laws, it cannot get grants from those accounts. It also loses the scrap tire and white goods tax proceeds it would otherwise receive. The State withholds those proceeds and credits them to the Highway Fund.

Counties can add up to 0.5% sales tax

Counties may ask voters to approve up to a 0.5% local sales and use tax, in 0.25% steps, for public education. Money must fund public school capital or operating costs. The tax excludes certain food and some bundled transactions.

SNAP error costs withheld from counties

If a federal SNAP cost‑share is triggered by the State’s payment error rate, the State will set each county’s share by October 1 each year. Each county pays 0.75% of its base‑year sales tax plus a proportional share of the rest. The Secretary of Revenue will withhold the county’s share from monthly sales tax allocations starting October 1, 2027. The State must report assessment amounts by county each year by February 1.

Natural gas surcharges allowed through 2036

The State keeps authority to use natural gas rate‑adjustment surcharges until July 1, 2036. This takes effect when the law takes effect. It does not raise rates now, but it keeps the option to add surcharges later.

New fees and listings for vape products

Beginning March 1, 2025, manufacturers must certify each vapor or consumable product sold in North Carolina and provide documents for each SKU. The fee is $2,000 per product at listing, then $500 per product each year on March 1. As of July 1, 2026, products marketed under a published FDA enforcement policy with premarket review pending meet parts of the certification rules.

23% tax on sports betting revenue

Licensed interactive sports wagering operators pay a 23% excise tax on gross wagering revenue received on or after the law’s effective date.

6% tax on prediction markets

Effective January 1, 2027, licensed prediction market operators pay a 6% tax on net trading fee revenue tied to North Carolina users. Net trading fees exclude certain costs like broker compensation and platform fees. Operators must keep records and file an annual return.

Higher tax on workers’ comp premiums

Starting July 1, 2026, the tax on workers’ compensation premiums rises from 2.5% to 2.6625%. Net proceeds go to the State General Fund.

Higher taxes on premiums and capitation

Beginning July 1, 2026, the tax on most insurance premiums rises from 1.9% to 2.0235%. Capitation payments to prepaid health plans are also taxed at 2.0235% instead of 1.9%. Insurers and prepaid plans pay the higher tax, which can show up in policy and plan prices.

Narrowed tax break for datacenters

The sales‑tax exemption no longer covers electricity used at an eligible internet datacenter. The exemption now applies only to qualifying business property and support equipment at the facility. If investment or location rules are not met, the operator must repay taxes and interest for electricity billed on or after the law’s effective date.

Ferry tolls start; $150 commuter pass

Ferry tolls must begin no later than January 1, 2027 for all routes. DOT must sell a one‑year commuter pass for one vehicle, priced at $150 to start. Only coastal‑area residents (as defined in state law) and active‑duty military can buy the pass. During a declared emergency, the Secretary of Transportation can suspend tolls on routes that serve the affected area.

Special court for complex family money

A new Complex Family Financial Court handles tough cases on property division, alimony, and child support. Parties may seek designation starting January 1, 2027; others have 30 days to oppose, and a decision is due in 45 days. Judges weigh listed factors like trusts, businesses, taxes, and case age, and longer trials get priority. Motion hearings are virtual by default, but complex issue hearings must be in person in the filing county; final hearings run on consecutive days and all hearings are recorded. Final judgments and some interim orders can be appealed to the Court of Appeals. Some procedures apply beginning July 1, 2026.

Digital car registration and anti-fraud rules

DMV now issues electronic registration notices and keeps electronic records. You can get a printed copy for a fee that only covers printing and mailing. When your registration renews, DMV updates your electronic record. It expires at midnight on the last day shown, and you can legally drive until midnight on the 15th of the next month. You must report a name or address change within 60 days. It is a felony to forge or use forged titles or registrations, and a misdemeanor to knowingly show fake, suspended, or altered electronic registration papers or plates.

Child care help: income and copays

The law sets who can get child care help and what families pay. For ages 0–5 and for children with special needs (any age), income can be up to 200% of the federal poverty level. For ages 6–12, the limit is 133% of the federal poverty level. Families getting a subsidy pay a copay equal to 10% of gross income for full-time care, 83% for blended care, and 75% for part-time care. The state also reserves 4% of subsidy funds for children with special needs and for families who are homeless or in temporary housing.

Child care help: new options and limits

State child care subsidies can now pay Department of Defense‑certified child care centers, giving military families more provider choices. For parents in college, the subsidy for child care is capped at 20 months total, counted at annual recertification. The subsidy cannot cover transportation fees charged by child care providers, so families must pay those costs or providers must absorb them.

Child care quality rules and provider protections

Child care subsidies stop going to one‑ or two‑star centers. Counties that lack enough four‑ or five‑star sites can get a transition period, and some non‑rated programs can be exempt in those counties. Counties cannot add extra local rules to cut a provider’s subsidy rate. Extra 2026–2027 funds for the NC Partnership for Children do not have to meet some admin, match, or subsidy‑expansion rules.

Closed networks for children's Medicaid specialty care

The children and families specialty Medicaid plan must use closed networks for intensive services, such as multisystemic therapy and residential treatment. The plan can exclude some providers from those networks. It cannot exclude federally recognized tribal providers or Indian Health Service providers from any network.

Lower lead dust hazard levels at home

Beginning January 1, 2027, floors with 5 micrograms of lead dust per square foot or more are hazards. Interior windowsills with 40 micrograms per square foot or more are hazards. Homes at or above these levels may need cleaning or remediation. Targets for window troughs, soil, and water are also lowered.

Medicaid help for some noncitizens and checks

Starting October 1, 2026, some qualifying noncitizens covered by CHIPRA section 214 can get Medicaid. At the same time, the Department checks some records monthly and income and assets at least quarterly and shares results with counties. These tighter checks can speed fixes or end coverage when people are no longer eligible.

Medicaid limits nursing home spending growth

The state runs a five‑year pilot (Jan 1, 2028–Dec 31, 2032) to limit Medicaid spending growth on nursing home care. A base year (Oct 1, 2026–Sept 30, 2027) sets targets. Each July 1, the state checks trends and can lower daily rates for the rest of the year if spending is over target. At year‑end, actual spending is reconciled and next‑year rates adjust.

New rules for autism and peer support care

Autism treatment assessments must be in person by a licensed autism provider; telehealth is not paid except for set exceptions. Service plans must include parent or caregiver training and be reapproved every six months if 16 hours a week or less, or every three months with plan approval if over 16 hours. Medicaid plans must also run closed networks for peer support and research‑based behavioral health treatment and can exclude non‑essential providers.

One Medicaid drug list and savings rules

Medicaid prepaid plans must use one drug list set by the state. Plans must meet savings benchmarks and ensure drug spending, after rebates, saves the state money. Plans report yearly on cost controls, and the Department can act if goals are missed.

Set payments for medical equipment through 2029

Through June 30, 2029, managed care pays for durable medical equipment, orthotics, and prosthetics at 100% of the lower of the supplier’s usual charge or the Medicaid fee‑for‑service maximum. This fixes the payment formula for these items under managed care contracts.

State Health Plan cap and valuation

For FY 2026–2027, the State caps its employer contribution to the State Health Plan at $8,925 per covered employee, paid monthly. The Plan must also get a yearly actuarial valuation of retiree health benefits and share it with State leaders. Agencies and schools must provide the needed data to the Plan’s actuary.

Veterans homes: stronger tools, one sunset

The State confirms authority to build, maintain, and run veterans homes, and the Department may use contracts to meet federal standards. The Veterans Home Trust Fund can pay for veterans’ care, salaries, and building repairs or upgrades. Funding to operate and maintain these homes is by legislative appropriation unless another statute applies. The Veterans Life Center statute, as amended, expires June 30, 2027.

Work First county rules and funding backstop

Counties that filed to be or stay Electing Counties keep that status and budget rules through September 30, 2028. If DHHS projects a shortfall for Standard Counties in FY 2026–2027, it can shift excess Electing County funds, with budget office approval and legislative reporting, to cover payments.

College aid and scholarships change

The law updates college aid in several ways. Each year by August 15, Escheat Fund earnings go to the State Education Assistance Authority for grants and loans to needy North Carolina students at public colleges. Winston‑Salem State can now award Cheatham‑White scholarships, and starting in 2027‑2028 the caps are: NC A&T up to 150 (at least 120 residents), WSSU up to 50 (at least 40 residents), and NC Central up to 100 (at least 80 residents); WSSU may nominate in 2026‑2027. Scholarships under the Patriot Star program are reduced so all aid together does not exceed the school’s cost of attendance; room and board count only if you’re at least half‑time. State funds for the child welfare postsecondary support program can only be used for students at North Carolina public colleges. Starting with 2026‑2027 awards, more private colleges count for State need‑based aid if they are SACSCOC Level VI and have a physical NC campus. Recurring funds that went to two nonprofits now run the Patriot Star program under the new law.

Court staff pay raises and ranges

Starting July 1, 2026, assistant district attorneys and assistant public defenders must earn at least $56,000, and a district’s average assistant salary cannot exceed $104,338. The Clerk of Superior Court is a full‑time State employee with a $154,447 annual salary. Assistant Clerks and Head Bookkeepers must be paid between $41,696 and $77,036. Deputy Clerks must be paid between $37,404 and $60,502. Full‑time magistrates follow a pay‑step table (entry $51,951; top step $82,957) with anniversary step increases.

Free school materials, no rental fees

Public school students get basic instructional materials for free when the State funds them. Local schools cannot charge rental fees for materials, starting July 1, 2026. Schools can still bill parents for loss or damage under State Board rules, and students and parents may be liable for damaged materials starting July 1, 2026. The State Board runs the fund, owns the materials, and sets care and return rules. Local boards must safely store and care for materials. Parents can inspect and buy the materials used and will get clear policies in the parent’s guide. The State improves reporting to track school spending on materials. Schools may run buses one day before school starts to register students and hand out materials (from July 1, 2026). The old Textbook Commission laws are repealed and replaced with these rules.

New hiring, licensing, and background-check rules

The regional school board must adopt one criminal‑history policy that applies to applicants, employees, and contractors. People subject to checks must be fingerprinted and sign consent for state and national reviews. The board must review results, make written findings, and may delegate duties to the principal. Criminal‑history records are private and may be destroyed after authorized use and at least one year. For licensed personnel, the board must send criminal history to the State Board of Education, which may consider revocation. The board must keep principal contracts to three years and ensure at least 50% of teachers are licensed, unless waived.

New rules for principals and pay

The State no longer issues provisional principal licenses. Principals and supervisors must be licensed or qualified; a retired principal or assistant principal may serve as an interim for the rest of a school year. Starting July 1, 2017, assistant principal longevity is built into monthly pay. Central office longevity pay now follows State employee rules under the Human Resources Act.

Teacher license rules and faster pathways

Teacher applicants can finish required exams before or during their third year of licensure. The State cannot convert Initial, Residency, or limited licenses to a continuing license unless exam requirements are done, except as allowed by waivers. A limited‑license teacher with EVAAS data converts if they have positive growth in two of the last three years. The State must grant a continuing license to teachers licensed in other U.S. states with at least three years’ experience in good standing, and to teachers with qualifying foreign licensure or recent verified foreign teaching experience. Districts can budget visiting international faculty with continuing licenses as dollar equivalents. The law also adds definitions for advanced teaching roles, which guide who can hold those roles.

Updates to scholarships and education accounts

Applications for Opportunity Scholarships and Personal Education Student Accounts open by the first Monday in February. Awards start for applications in by the first Monday in March. Scholarship students in grades 3, 8, or 11 also get the cost of the required national test paid for the student. The program’s trust fund can hold up to $15 million and can cover award shortfalls, with any excess over $15 million sent back to the General Fund. PESA can pay for a one‑to‑one classroom aide starting in 2026–2027 with guardrails: the aide must have a high school diploma, be approved by the principal, serve only the eligible student, and cannot be a parent, close relative, or school employee. To verify domicile for scholarships and PESAs, the Authority uses electronic checks with state agencies, and household members must authorize access to identifiers like Social Security numbers.

Wartime veterans’ scholarships update

For 2027–2028, the Authority sets a standard payment schedule based on cost of attendance and posts it by April 1, 2027. New applicants must be undergraduates and in‑state for tuition for that cycle. Up to 2.5% of program funds can cover administration, and unspent funds through 2027–2028 move to a trust for future awards. The Authority also checks by July 1, 2027 if there is enough money for full awards and reports by March 15, 2028.

Engineer and surveyor license rules and fees

An active license certificate proves your right to practice. You must get and use a Board‑approved seal on final drawings and reports. The Board may set multi‑year renewals. Renewal fees are capped at $75 per calendar year of the renewal period. Reinstatement within 12 months costs up to $100 plus the renewal fee; after that you must reapply. The Board must send renewal notices at least one month before expiration. You can go inactive (pay fees, no practice, no continuing competency until reactivated).

Licensing: expert testimony OK, tougher enforcement

Licensed professionals may testify as lay or expert witnesses and prepare expert reports. Licensees and firms must promptly report address and business changes to their Board. If a court finds fraud or intentional deceit and the Board wins, violators must pay up to $5,000 in the Board’s attorneys’ fees plus costs. The Board can get injunctions without posting bond.

Child care pay tied to market

The state now calculates county, regional, and statewide market rates by license level and child age. Subsidy payments to providers follow these market rates and star ratings. Minimum‑standard and religious providers are paid the one‑star county rate or their private rate, and two‑plus star providers get the market rate for their rating and age group.

Tougher background checks for child care

Child care providers must submit fingerprints and consent to state and national criminal‑history checks. Refusing or lying can bar you from providing care, and intentional falsification is a Class 2 misdemeanor. Providers can correct or challenge records and may sue within 60 days after a disqualification notice.

Faster code appeals and stricter plan rules

Appeals on alternative designs now go to the Building Codes and Interpretations Bureau, which must decide within 10 business days. Starting January 1, 2027, the Bureau must post appeal decisions and interpretations online within 10 business days. The Residential Code Council must finish alternative‑design approval rules within 12 months of the 2024 Residential Code taking effect. Plans for life‑safety work must be done by a registered architect or engineer and filed for State review; licensed institutional projects also go to Health and Human Services. Beginning January 1, 2027, local governments may administer State Building Code regulatory fees. The Bureau will send adopted code amendments to local officials, who should share them with owners and request compliance plans.

Bigger film grants, higher episode bar

Beginning July 1, 2026, each episode must spend at least $500,000 to qualify. Grant caps increase: up to $20 million for a feature or one non-scripted season; up to $25 million for one scripted season or a TV series; commercials stay capped at $250,000. Grants still cannot exceed 25% of qualifying expenses. The ‘highly compensated’ threshold rises to $4,000,000, so only pay above that is subtracted from qualifying expenses.

Billboard owners: trimming permit and fees

Sign owners can get a one‑year vegetation maintenance permit to cut, thin, prune, and remove brush in the allowed zone. The permit costs $400 to apply or renew. Cutting trees in the State right‑of‑way between viewing zones on the same structure costs $150 per caliper inch. The Department must approve or deny complete new sign permits within 30 days, or the permit is deemed approved.

Express review permit fees get caps

For express review of underground storage tank (UST) certifications, the fee cannot exceed $4,000 per application. For other express‑review permits, the fee cannot be more than $4,000 plus 150% of the usual statutory permit fee.

Faster energy permits; set air fees

For critical energy projects, DEQ must join the federal FAST‑41 process when asked, name a single contact in 5 business days, list needed permits in 15 business days, and follow set timelines. DEQ can extend milestones only for listed reasons and must report if it is over 30 days late on a final decision. Non‑Title V air permits have set fees: $800 application and $3,070 annual for facilities seeking federally enforceable limits; $100 application and $400 annual for facilities below Title V thresholds; $50 for ownership changes. DEQ may discount those annual fees by up to 25%.

New annual permit for billboard vegetation

An annual vegetation maintenance permit is now the only permit needed to cut or remove vegetation near permitted outdoor signs. Older selective‑removal permits, caliper‑inch fees, and some replanting rules are repealed. Willful, substantial noncompliance brings a five‑year moratorium on vegetation work at the site, possible permit revocation, payment of investigative costs, and bond forfeiture.

New billboard tree and fee rules

Native dogwoods near outdoor ads cannot be cut. If the state approves your beautification and replanting plan, you do not repay for removing trees that were there when the sign was built and you do not have to remove two nonconforming signs. The state can only revoke a permit for willful illegal cutting within 500 feet that clearly improves sign view. A prior vegetation‑fee law is repealed. The Board of Transportation now sets express review fees, and any matching code fees are repealed when Board fees take effect.

New rules for engineers and surveyors

Electronic and GIS data count as land surveying only when tied to listed surveying tasks. The Board can set rules for procedures, exams, and conduct, and must post the license roster online. Engineer intern applicants no longer need three references, but land surveyor interns must pass the fundamentals exam. Professional land surveyor applicants must submit five references, including three licensed surveyors or as the Board accepts.

State contracting shifts to small businesses

The state ends the Office for Historically Underutilized Businesses and moves the Small Business Enterprise program to the Office of Purchase & Contract. Policy now promotes "small business" contractors broadly, and the state will collect and report small‑business participation data. Several reports drop minority‑status fields, and minority goals no longer apply to some UNC, Lottery, and energy‑savings contracts. IT bidders must say where work is done and if any is outside the U.S.; the state tracks and reports this.

Water and sewer bidding rules change

For water and sewer construction, boards must re‑advertise if fewer than two competitive bids are received the first time. After a second ad, they may award to the lowest responsible bidder even if only one bid is received. This rule applies to contracts awarded before January 1, 2031.

Changes to prosecutors and judges’ roles

Counties and cities are not required to keep prosecution positions or services that began under certain speedy‑trial contracts, though they may still fund them by contract. When two specified special superior court judgeships become vacant on or after January 1, 2025, the General Assembly fills them by law—one nominated by the House Speaker and one by the Senate leader—for up to eight‑year terms.

Court IT controls and breach liability

The Council may provide software to district attorneys but must get prior AOC approval for IT and contracts while AOC supplies network and data services. The AOC Director may cancel unapproved systems. The Council is responsible for breach notices, credit monitoring, third‑party claims, and any damage its software causes to AOC systems.

Disaster aid rules: seek other funds

DOT must quickly pursue FEMA reimbursements and report monthly on expected and received federal payments. Recipients of State disaster funds must seek insurance, federal aid, and (for colleges and non‑State groups) private donations first. If they later get those funds for the same losses, they must return them up to the State aid amount. The Governor and agencies must spend State money to preserve federal eligibility and avoid duplicate payments.

License plate readers on DOT land

DOT can let law enforcement place license plate readers on DOT land and rights‑of‑way. Devices must be above ground, removable, and use no combustible fuel. DOT can revoke permission with 30 days’ notice. Utilities can request removal or move devices to reach their lines. DOT and utilities are only liable for gross negligence or willful misconduct.

New criminal data system and device fees

The SBI runs a new Division of Criminal Information to collect and share criminal‑justice data. The Bureau can make rules and use data from other agencies with proper security. Agencies that connect pay monthly fees: $25 per desktop device and $12 per mobile device.

Samarcand Academy training with cost‑recovery fees

The SBI operates the Samarcand Training Academy with its own budget. The Academy must offer facilities and training for law enforcement, corrections, military, courts, and juvenile justice. It must set a fee schedule that covers the actual material costs of use.

Sex‑offender registry rules and online access

The law defines “aggravated offense” for the registry as sexual penetration involving force or threats, or any penetration with a victim under 12. The SBI must provide free online access to registry data, including photos, and can charge only for paper copies. Colleges can get free electronic lists of registrants who self‑identify as students or employees.

Stronger checks on vape and nicotine sales

Starting May 1, 2025, the State publishes a public list of certified consumable and vapor products and updates it monthly. A State‑led task force coordinates compliance checks with local law enforcement. When federal rules change, manufacturers must prove compliance within 30 days or be removed from the directory.

Utilities Commission can hire private lawyers

The Utilities Commission may retain private counsel for cases. Legal costs can be reimbursed from refunds owed to North Carolina natural gas distribution companies, with procedures to set aside parts of refunds. The Commission oversees the lawyers it hires.

Deadlines and extensions for disaster funds

Tropical Storm Fred funds stay available until June 30, 2030 and can also cover some Hurricane Helene damages. Hurricane Helene funds, including those managed by OSBM and UNC, must be spent or committed by June 30, 2030 or when the program ends, whichever comes first. Tropical Storm Chantal funds must be spent or committed by June 30, 2031 or program completion. Town of Princeton funds for Massey‑Holt projects revert if not used by June 30, 2028. Duplin County riverbank funds revert if not used by June 30, 2027.

Disaster recovery money and new grant limits

Beginning October 1, 2026, up to $20 million goes to the NC Forest Service for wildfire mitigation; any extra goes back to the disaster fund. $3.5 million shifts to DOT to cover the gap between FHWA and HMGP payments for a dual‑eligible property; unused money returns June 30, 2030. Dam Safety grants can now fund high‑ or intermediate‑hazard dams damaged by disasters, with annual reports. Local capital grants get priority for counties with 250,000 or fewer people and badly damaged unincorporated areas, and money for an unincorporated area must stay there. The state excludes Madison County’s allocation when it applies award caps. Airports in affected areas can get grants for emergency gear and infrastructure. The Chantal Fund caps grants at $1,000,000 per project and only if no federal reimbursement is available. Remaining NCORR cashflow loan funds revert to the Savings Reserve when that program closes. The Helene cashflow loan program gets $20 million more. Tourism authorities in HUD‑designated, under‑250,000‑population counties split $2 million equally; funds must be encumbered by June 30, 2028 or revert to the Helene Fund.

New DOT rules on projects and delays

DOT must study pavement preservation within 90 days and report by the start of the 2027 session. Starting January 1, 2026, local governments that vote to remove a statewide project after predevelopment must repay DOT’s preliminary costs; DOT will withhold State aid and pause new STIP projects in that area until paid. Through June 30, 2027, DOT must also report Hurricane Helene delays and expected finish dates for affected interstate and U.S. Highway projects.

New rules for emergency water-system loans

Funds move into the NCUC Emergency Reserve to support private water or sewer systems under emergency control. Starting July 1, 2026, only private systems with an appointed emergency operator can get these loans, and loans are capped at the original cost estimate (with up to 25% extra if approved). Loans require Local Government Commission approval, must be 3% interest or less, and cannot exceed 10 years. Applications are reviewed anytime outside the usual ranking. Loans are only available when no other reasonable funding exists.

New rules for state building projects

State community college projects cannot use LEED or similar green systems unless the cost pays back in 10 years. The contracting team must give a written payback attestation and report at design stages. Old unspent grant funds do not revert until used, the project finishes, or June 30, 2027. Unobligated capital balances from accounts created on or before June 30, 2021 move to the State Capital and Infrastructure Fund, unless restricted or encumbered. The Schools for the Deaf and the Governor Morehead School pick their designers within 60 days of funding, with required reporting.

Tighter controls on state building money

Agencies must give five‑year operating and maintenance cost estimates for capital projects, and OSBM sets a standard for these estimates. SCIF dollars cannot pay for LEED/Green Globes‑type systems unless a design professional attests the cost is repaid by utility savings within 10 years, with a report due at final drawings. Unspent funds from certain rural tech and listed projects move back to SCIF. The State Auditor must issue a professional audit opinion on the Annual Comprehensive Financial Report.

Disaster cash‑flow loans repay sooner

Cash‑flow loans must be repaid when FEMA money arrives if that is before June 30, 2030. Repaid money goes back to the Helene Fund. The program now works as a revolving fund for new loans, and existing reporting rules apply.

Child care funds: caps, floors, and shifts

After the next census data release, county child care allocations phase in over three steps and include market‑rate updates to avoid funding shocks. Statewide, administrative costs averaged across local partnerships are capped at 10%, keeping more money for direct services. Unspent federal child care funds can be moved to subsidies if allowed, and small counties (under 35,000 people) keep at least their 2012–2013 funding level. State funds cannot pay for capital projects in 2026–2027 or for advertising in 2025–2027. Providers paid with TANF funds must follow all Division child care rules.

Child care rules prioritize workers

The health department updates child care rules to target help toward employment. This can make it easier for working parents to get care support. Access may tighten for people who are not working, depending on the final rules.

County social services funds and match rules

For 2026–2027, the state sends $13.84 million in SSBG funds and shifts $19.17 million from TANF to county block grants. The Division certifies service amounts and may realign budgets during the year. It also funds $285,612 for child welfare training. Counties using the Special Children Adoption Incentive Fund must provide a 50% local match.

Hospital assessment amounts and share update

For FY 2026–2027, the State sets quarterly hospital assessment admin amounts at $0, $3.3 million, $2.5125 million, and $3.4625 million. From 2027–2028 through 2035–2036, the quarterly amount equals $3.4625 million plus the last 12 months of CPI‑U changes measured March 1. From July 1, 2036, the quarterly amount is $0. The law also sets private hospitals’ Part 2 share at 80.27% and public hospitals’ share at 19.73% starting the next assessment quarter.

Medicaid payments and reserve controls

The Medicaid Contingency Reserve can be used only by a new act of appropriation. The Budget Director must show a real shortfall and the State Controller must verify Medicaid receipts; detailed data must go to the Fiscal Research Division. While the nursing home pilot runs, the State cannot roll out new nursing home payment methods unless allowed in the law or required by federal law. Starting January 1, 2027, HASP payments to health plans cover higher hospital rates and the related plan taxes and charges.

New rules for human-service block grants

Block‑grant changes need budget office approval, and the office cannot cut funds set aside for certain subrecipients in Substance Use and Maternal and Child Health items. DHHS can realign Maternal and Child Health and TANF funds within set limits, and can shift SSBG administrative funds between divisions with approval. At least 75% of State funds for Children’s Advocacy Centers must go to in‑state centers in good standing. Food banks buying with these funds must prioritize North Carolina products, and the usual 25% local match is waived for those purchases. For 2026–2027, at least 90% of Maternal and Child Health funds to Mountain Area Pregnancy Services must go to direct services.

Smart Start and subsidy funding rules

The 30% Smart Start (NC Partnership) share now serves as the base for each county’s subsidy split. The Division can hold back up to 2% of funds to prevent service cuts or repay federal overpayments, and must send unused amounts to counties by year‑end. Unused voucher funds can be reallocated based on county spending, and counties over 100% spending must submit a plan. State Smart Start dollars must focus on proven quality work, and, for 2026–2027, the Partnership and locals must raise a 19% private match (at least 13% cash, up to 6% in‑kind) by June 30, 2027, or next year’s state funds are cut dollar‑for‑dollar. The Partnership must also cap how much State money can pay top leadership salaries; locals may add non‑State funds above the cap.

Building code councils move to Labor

Staffing and support for the Building Code Council and the Residential Code Council now sit in the Department of Labor’s Building Codes and Interpretations Bureau. Council operations are funded from the State Building Code Regulatory Fund and Labor Department appropriations. The Commissioner of Labor can call the first meetings and hire added staff within available funds with council approval.

Building code duties move to Labor

Beginning January 1, 2027, the Building Code Council and the Residential Code Council move to the Department of Labor. The Code Interpretations Section, staff, records, and listed positions transfer there, and the Department may reorganize those jobs. Some engineering staff can choose to stay with the Fire Marshal or move to the Department of Insurance. Most Bureau employees are no longer covered by general state personnel laws, except for Articles 6 and 7. Initial council terms are extended by one year, and new five‑year terms follow. Also starting January 1, 2027, refusing an approved alternative design or a binding code interpretation can count as willful misconduct.

New statewide building codes bureau

A Building Codes and Interpretations Bureau is created in the Department of Labor. It starts work January 1, 2027 and manages the Building Code Council, Residential Code Council, and Code Interpretations Section. The Labor Commissioner appoints the Director and provides support.

After-school grants with required match

ELISS grants can be up to $500,000 per year for up to two years starting July 1, 2027. Recipients must match $1 in non‑State funds for every $3 in grant funds; up to 50% of the match may be in‑kind. State funds cannot be used for the match.

AI policies and training in schools

DPI creates a model AI policy by December 31, 2026 and shares it by January 15, 2027. Local school governing bodies must adopt AI use policies by June 30, 2027. DPI sets and updates an AI tool review framework, posts lists of reviewed and in‑use tools, and gives buying guidance and vendor lists. The Friday Institute delivers at least 10 hours of online AI training, a facilitator guide, classroom resources, and a train‑the‑trainer package by June 30, 2027. DPI distributes these resources to schools by June 30, 2027.

Classroom dollars protected; textbook fund ending

The State Board cannot let districts move State funds into central office salaries. Starting July 1, 2026, instructional‑materials allotments may only buy instructional and supplementary materials and needed software, and cannot be transferred. Starting July 1, 2026, local money set aside for teachers, instructional materials, classroom supplies, and equipment cannot be used for other purposes. No new money goes into the State Textbook Fund after July 1, 2026; the fund will close after current balances are spent.

Guardrails on state pay and benefits funds

The Office of State Budget and Management must use money set aside for mandated raises and benefits only for those increases. Agencies cannot use that money to adjust vacant positions, give raises above what the General Assembly requires, or raise a filled job to the minimum of its range. Starting July 1, 2026, the Budget Director may delay the formal start date of employer contribution rates for administrative reasons, but total paid into benefit trusts must match what would have been due from July 1.

K-12 math help and AI pilot rules

Low‑performing renewal systems, charters, regional schools, constituent‑institution schools, and lab schools must use math screeners and create Mathematics Success Plans. Program funds for Khanmigo may only pay for the service, training, and required rostering. Collaboratory funds for math pilots must be used only to develop and run those pilots. The prior mandate to contract with the NROC Project is repealed.

New community college funding and receipts

Beginning in the 2026–2027 year, the State Board may revise the community college funding formula. Every college keeps a base allocation, and extra funds are based on FTE in listed course types, weighted by workforce sector using salary and labor‑demand data. If tuition and fee receipts end the year above the certified amount, the State Board may allocate the extra to colleges for operating costs, and those funds do not revert.

New funding formula for remote charters

Starting in the 2027–2028 school year, statewide remote charter schools receive the State’s average per‑pupil allocation. This excludes funding for students with disabilities and for limited English proficiency. The change may raise or lower funding for these schools compared to before.

Principal recruitment supplements: rules updated

The Department follows a yearly schedule: notify by Oct 1, employer intent by Nov 1, selections by Nov 15 (up to 40 schools), contracts by May 1, and recruitment hires start by Aug 1. Eligible schools are now the bottom 10% statewide (was 5%). The lowest‑performing schools get priority. Actions occur only if funds are available.

Rules for low‑wealth school funding

Starting July 1, 2026, low‑wealth funds may support teachers, assistants, technicians, supplies, training, materials, and salary supplements; boards are encouraged to spend at least 25% to help low‑performing students. Year‑to‑year county allocations cannot change by more than 30%; newly eligible counties get the full calculated amount; if a county becomes ineligible, its first‑year cut is capped at 30%, and after two straight ineligible years it gets no funds. Starting in 2027–2028, DPI must use no more than the 2026–2027 appropriation to calculate allocations, except extra funds the legislature adds for salary and benefit increases.

Rules for regional and lab school finances

Regional school boards control how funds are received, accounted for, and spent, and may pay a local district to act as finance agent. For UNC laboratory schools, state boards set cost and service standards. Schools and districts must sign agreements, review them at least every three years, and reimburse actual costs when a party fails to provide requested services.

State blocks local wage and union rules

Beginning October 1, 2026, local governments cannot set employer rules on pay, hours, benefits, or leave. They cannot deny permits, zoning, incentives, or other help because a business refuses to sign an agreement with a labor union. Local contracts or policies that try to force wage or benefit standards are unenforceable, and employers cannot be forced to limit their communication with employees.

Stronger standards for principal training

Principal preparation programs must be State‑approved, usually lead to a master’s in school leadership, and renew every five years. Programs must include at least a 500‑hour internship, portfolios, required competencies, strong school partnerships, and written agreements for clinical experiences.

Student aid: year‑end return and backup funding

If student aid money from the Escheat Fund is not committed by year end, it goes back into the fund. If fund income is too low to meet amounts in the budget, the State may use some principal to fill the gap, but not below the minimum required by law.

Teaching Fellows program rechecks

Starting July 1, 2026, the Commission must reevaluate each teacher‑training program in Teaching Fellows at least every six years. Programs can be removed. Students who got loans in the affected year keep eligibility for forgiveness. The first full round of reviews must end by July 1, 2032.

UNC‑Chapel Hill civic school created

UNC‑Chapel Hill must establish a School of Civic Life and Leadership as its own unit. The school follows staffing and program rules in law. It changes university structure and programming.

Workers’ comp commission restructured

The Industrial Commission now has six full‑time commissioners serving six‑year terms. The Governor appoints two, the Commissioner of Labor appoints two, and legislative leaders recommend two for General Assembly appointment. Nomination timelines, term limits, and interim appointment rules apply. The Labor Commissioner names the chair and vice‑chair, and the chair can hire and fire staff.

Chip hub funding; some broadband rules repealed

Funding for NC State’s CLAWS Hub can be used with about $100 million in federal CHIPS Act money. The funds may support broadband, 5G/6G, chips, AI, quantum, defense work, and other semiconductor efforts, including non‑capital costs. Two prior broadband grant sections are repealed, so those grant rules no longer apply.

Tighter control of state capital funds

Economic development appropriations must be spent only on purposes allowed by law. The General Assembly has final say over project NCGA26-1 activities. Board seats for the Capital Facilities Finance Agency are rebalanced among the Treasurer, Auditor, Governor, and the General Assembly. For property sold on or after July 1, 2026, a proceeds exemption is repealed. Most budget text in this act applies only to the 2026–2027 fiscal year unless it clearly states otherwise.

State building funds shifted across projects

The law reshapes capital funding. Cuts include: DOA22-3 to $250,000 (from $60,000,000); DAC23-6 to $449,000 (from $3,488,000); Juvenile center to $35,000,000 (from $40,450,000); National Guard NG23-4 to $0 (from $8,500,000) and NG23-5 to $0 (from $8,000,000); Fayetteville State’s education building to $61,000,000 (down $2,000,000). Increases include: NC School of Science and Math residence hall to $43,988,042 (up $15,000,000) and temporary housing to $2,180,000 (up $580,000). These are SCIF maximum authorizations for 2025–2027 and need new laws to change.

Insurance regulatory fees and rules updated

Captive insurers now pay the State’s insurance regulatory charge starting July 1, 2026. The law also changes which Chapter 58 provisions apply to workers’ comp self‑insurance groups and updates wording in the retaliatory premium tax section. These adjustments may change compliance costs for some insurers.

Interest from special funds to General Fund

Interest and investment earnings from several State special funds now go to the General Fund. Interest on federally credited Water Infrastructure accounts still stays with those federal accounts. Loan repayments stay with their original accounts.

New Insurance Regulatory Fund starts

Starting July 1, 2026, the state creates an Insurance Regulatory Fund. The Department places certain fees and examination reimbursements into this fund and keeps separate budgets for listed boards. The money supports regulation and administration. It does not pay households directly.

State Banking Commission restructured

Starting January 1, 2027, the Commission has 15 members, including the State Treasurer ex officio. The Treasurer appoints six members, the Governor two, and the General Assembly six, with banker and public‑member requirements. The Commission meets at least quarterly, may allow remote attendance, and acts by majority of qualified members. Many Governor‑appointed seats expire December 31, 2026 and are reallocated under the new law.

State drops approval for rehab beds

Beginning October 1, 2026, inpatient rehabilitation facilities and beds no longer need certificate‑of‑need approval. The law removes the rehab facility category and definition. This can make it easier for providers to add or change rehab services.

Team up on pediatric care

The Board can make cooperative deals with Duke, UNC, and North Carolina Children’s Health for pediatric research, care, and operating North Carolina Children’s. These actions are treated as state action and are intended to be immune from antitrust laws.

Real Estate Commission seats reworked

The Real Estate Commission now has nine members with seats filled by the Governor, the General Assembly, the State Auditor, and the Commissioner of Labor. At least three members must be licensed brokers and at least two must be public members not in real estate. Members serve staggered three‑year terms, and vacancies are filled by the original appointing authority. Seats formerly assigned to the Governor are reassigned over time as terms expire.

Limits on UNC repair projects and transfers

UNC must use R&R26 money for repairs and renovations. Any single non‑listed project is capped at $15 million, and funds for one campus must stay at that campus. Projects listed in S.L. 2021‑180, Section 40.1(d) are excepted from parts of these limits.

New sales tax refund rules for hospitals

Most nonprofit hospital systems and all their affiliates are treated as one entity for the annual sales‑and‑use tax refund cap. A hospital authority and its related facilities are also one entity. UNC Health and each of its component units, affiliates, and managed entities are treated as separate entities, each eligible up to the cap.

More support for victims and witnesses

Starting July 1, 2027, crime victims receive a standard written notice form within 72 hours. Victims who want updates must return the form within 10 business days and keep contact info current. Witnesses get $5 per day for attendance, and former law officers get $20 per hour when testifying. When the State is liable in certain criminal cases, witness payments follow the State’s rules so witnesses can be paid.

New U.S. Military Veteran plate

Starting October 1, 2026, honorably discharged veterans can get a “U.S. Military Veteran” specialty license plate with their branch name and insignia. This section does not change plate fees.

At-home license renewals in Forsyth County

Forsyth County residents with a Class C license can renew at home. DMV staff or approved vendors come to your home to do the renewal. DMV can audit vendors and remove them for poor service or rule violations. The pilot runs through January 1, 2030.

Digital vehicle registration replaces paper

DMV must run a secure online system for vehicle registration. Owners and police can verify status online. Paper cards or stickers are no longer needed to prove registration.

DMV fees waived for deployed troops

If you were deployed outside the continental U.S. for 45 or more days when DMV notified you of a revoked registration, the DMV waives penalties and restoration fees. You have an affirmative defense for not returning plates. When you reregister, you get electronic notices or plates at no cost.

E-sign and e-notary for DMV forms

You can submit title, registration, and similar DMV documents with an electronic signature. Electronic notarization is allowed under State law. The DMV does not approve vendors; the company offering e‑sign services is responsible for its process.

Faster payment on car insurance claims

For motor‑vehicle damage claims arising on or after October 1, 2026, insurers must mail or deliver payment within 10 business days after settlement. The same timing applies to supplemental claims.

No minors in vape shops

The law bars anyone under 21 from being inside a specialty vapor store. To enter, patrons must verify age using a third‑party service that scans a driver’s license or state ID. Violations are a Class 1 misdemeanor. This starts May 1, 2025, or when the Department of Revenue posts the public directory, whichever is later.

Safer, clearer ticket resales online

Starting October 1, 2026, resellers cannot list tickets they do not have or sell the same ticket twice. No one may resell a ticket before the public on‑sale unless the entertainer, venue, or organizer allows it. Ticket sites may not use an artist’s or venue’s name, logo, or branding or imply they are official without permission.

In-home driver license renewals pilot

The DMV must award Forsyth County contracts by July 1, 2027 for in‑home renewals. Starting January 1, 2028, approved vendors can provide in‑home Class C license renewals. Renewed licenses must meet federal and state rules. The pilot ends January 1, 2030.

Sandhills veterans cemetery care this year

For the 2026–2027 year, the state uses cemetery funds to hire a vendor to maintain and operate only the Sandhills State Veterans Cemetery. The Department must report the work and improvements to the General Assembly. This direction applies only in 2026–2027.

Supplemental retirement for Council of State

Beginning July 1, 2026, members of the Council of State who serve on or after that date and retire with at least five years of Council service get a monthly supplement. The supplement is their monthly retirement benefit multiplied by a statutory factor. The agency where they most recently served pays the supplement.

Better SNAP accuracy and support

Beginning in FY 2026–2027, the state funds upgrades to the NC FAST system to cut SNAP payment errors and add AI guidance. It also adds staff: county quality leads, quality control analysts, policy and training staff, and data analysts. Seven regional training specialists will support counties. These steps aim to make SNAP payments more accurate and steady for families.

Care staff can live on‑site

The health regulator must adopt rules to allow direct support staff to live in certain licensed group homes. A progress report is due by July 1, 2027. This can improve staffing and stability for residents with disabilities.

Clinic and dental grants focused on care

Community Health Grants for 2026–2027 are capped at $150,000 per award, and up to $200,000 may cover state admin costs. Money cannot raise staff pay or replace other funds or pay old debt, but it can hire or keep providers. Funds to the NC Dental Society’s Missions of Mercy clinics must pay only for direct patient care and supplies, not admin.

Help for youth leaving foster care

The Foster Care Transitional Living Fund pays for services for youth ages 17–21 who are leaving foster care. For 2026–2027, private partners must provide at least a 25% match to the state’s funding. The program also measures results and may test new approaches.

More help for disaster responders

Emergency management workers, including paid, volunteer, or auxiliary staff responding to disasters, can use Responder Assistance Initiative services while deployed. This applies to State and local workers who meet the State definition.

More support for vulnerable seniors

The law funds $3.8 million for guardianship services for adults who need a legal guardian. It also sets aside $893,041 to hire more Adult Protective Services workers where they are most needed. APS funds can pay only for salaries and related expenses and are exempt from the usual local match.

No copays for certain waiver services

Beginning July 1, 2027, you pay no Medicaid copays for Innovations waiver or Traumatic Brain Injury waiver services. Other Medicaid copays are set at the federal maximum.

Simpler pre‑K and subsidy steps

Local NC Pre‑K committees must use the state’s standard process to award slots and select students. TANF‑funded child care payments must follow the state’s subsidized child care rules. County forms for child care help must ask if the family already gets NC Pre‑K or Head Start. These steps improve fairness and help agencies coordinate services.

State program to support fathers

The state provides $3 million one time in 2026–2027 to launch Responsible Fatherhood NC. DSS will hire a nonprofit as Program Manager to run a statewide media campaign, share resources, and promote fatherhood programs in schools and colleges. A new grants program funds nonprofits to serve fathers, with full‑service grants that include case management and separate parenting‑education grants. The program must begin no later than six months after this law.

Water utility workers counted as first responders

Water and wastewater utility workers are now treated as first responders for the vaccination program. These workers qualify for the program’s protections.

Easier trust rules for farm tax break

Beginning January 1, 2026, a trust can qualify for present‑use value if all beneficiaries are the trust’s creator or the creator’s relatives. The law counts indirect beneficiaries too, such as a beneficiary of another trust or a member of a business that holds a beneficial interest.

Hotel access protected during disaster repairs

Inns, hotels, motels, RV parks, and campgrounds must provide suitable rooms to accepted guests and to renters under an emergency or disaster occupancy. This includes renters using Community Development Block Grant‑Disaster Recovery (CDBG‑DR) help during home repairs or rebuilding.

60-day parent review of sex ed

Starting July 1, 2026, the State Board must make State‑developed or approved reproductive‑health and safety materials available for parent review. Parents get at least 60 days to review them before use in schools.

988 and Warmline on UNC materials

UNC campuses must give students the Suicide and Crisis Lifeline number 988 and the NC Peer Warmline 855‑733‑7762. Schools must show them on IDs, websites, device home screens, and key documents. They must verify the numbers every year. This starts with the 2026–2027 academic year.

AI tutoring and AI literacy in schools

The law lets school districts opt into the Khanmigo AI tutoring program for grades 6–12. Districts can request licenses up to the number of students in grades 6–12 plus their teachers and admins; DPI prorates if money runs short. The State Board must also set age‑appropriate AI literacy standards for K–12 that cover ethical use, limits, checking outputs, privacy, and safety, and update them yearly.

Approved math materials and reporting

Starting in 2028–2029, each Mathematics Success Plan must list any high‑quality materials used from the Office of Learning Research (OLR) approved list. Each low‑performing school must report those materials to DPI by June 15 yearly. DPI will compile a master list and send it to lawmakers by August 15.

Broader NBPTS pay and supplement protections

More State‑paid teachers qualify for NBPTS benefits if they spend at least 70% of their time in the classroom, their certified area, as a Title I instructional coach, or in an advanced teaching role. They can get paid leave, fee help, and a salary supplement if funds are available. For 2026–27, districts that receive State supplemental funds must add to, not replace, local pay. Spending under 95% of the local maintenance‑of‑effort counts as supplanting and blocks State allocations.

Charter schools must post fees

Starting July 1, 2026, charter boards must adopt rules for solicitations and sales. They cannot collect fees from students or staff without board approval, except State Board‑set instructional materials fees. Charter boards must post approved fees and fundraising by October 15 each year and within 30 days of any change.

Clearer private-college scholarship eligibility

Starting with 2026–27 awards, scholarship rules use the updated definition of an eligible private postsecondary institution in G.S. 116‑280(3). This clarifies which private colleges qualify.

Early Graduate scholarships start 2027‑28

The State sets $1 million in 2026–2027 for the Early Graduate Scholarships Reserve. These scholarships are paid starting in the 2027–2028 academic year.

Easier licensure for foreign‑trained teachers

The State Board must set rules to recognize teaching licenses or credentials issued in other countries. This creates a path to use foreign credentials when applying for a North Carolina teaching license.

Easier NC licensing for principals

The State Board of Education sets rules to decide whether a person who finished an out‑of‑state principal program meets North Carolina’s standards. This creates a clearer path to a NC principal license for applicants trained elsewhere.

Elementary licenses cover grades 1–8

The State Board of Education will change rules so an elementary teaching license covers grades 1 through 8. Teachers with an elementary license can teach grades 7 and 8 without getting a new license.

Excused time for religious instruction

Starting in the 2026–2027 school year, schools must excuse students for released‑time religious instruction. Parents must sign a consent form and arrange transportation. Schools cannot use State or local funds to facilitate attendance except small admin costs. Excused time is at least 1 hour and no more than 4 hours a week, and students must make up missed work.

First-grade reading packets in six counties

In 2026–2027, DPI provides $500,000 one time to buy Just Right Reader literacy packets. Packets go to low‑performing first‑grade classrooms in Burke, Gaston, Johnston, New Hanover, Randolph, and Union counties. Funds are split based on first‑grade student counts.

Grant for fifth-grade outdoor learning

In FY 2026–2027, DPI gives $250,000 one time to Muddy Sneakers for fifth‑grade hands‑on learning. None of the funds can pay legal fees or litigation costs.

Guidance for advanced teaching roles

DPI must issue guidance to ATR units on staffing plans and budgets. The guidance must help units use multiple funding sources and extend the reach of teachers in advanced roles. DPI must publish it by February 1, 2027.

How principal bonuses are calculated

The October principal supplement uses the first, second, and third years’ growth scores. The March supplement uses the second, third, and fourth years’ scores. If a score is missing, the most recent up to year four is used. Since July 1, 2017, principal longevity pay is folded into the annual salary schedule and not paid separately.

Johnston County joins Advanced Teaching Roles

Johnston County Schools are authorized to join the Advanced Teaching Roles Program in the 2026–2027 school year. The district must submit a proposal within 30 days of this law and meet program rules. State funds may be awarded if program money is available.

Lighthouse Math help at Wake Tech

The law creates the Lighthouse Math Project from the 2026–2027 through 2029–2030 school years. It targets students at East Wake High, Knightdale High, and others who study at Wake Tech East. Wake Tech and WCPSS must partner with SparkNC and contract for Khanmigo AI tutoring. Khan Academy will build a self‑paced math course that proves college readiness. The state provides $500,000 one time to buy Khanmigo licenses and build a gateway college math course, available through June 30, 2028.

Local boards pick materials, ensure access

Local boards choose instructional materials and decide when to use them. Contracts must give the board a license to create accessible copies like braille, large print, audio, and other formats for use in the district.

Longevity pay for Executive Director

The Executive Director receives longevity pay instead of merit raises: 4.8% of salary after 5 years, 9.6% after 10, 14.4% after 15, 19.2% after 20, and 24% after 25 years. Prior qualifying service in listed justice system roles counts toward these milestones.

Make‑up disability funds for charter schools

The state keeps $4.1 million from 2025–26 to pay charter schools that missed extra disability funding for students enrolled in the first 60 days. DPI must publish the process by October 1, 2026, allow at least 30 days for schools to submit data, and report by January 15, 2027. Money not allocated reverts at the end of 2026–27. Schools cannot receive funds for a child who already got the prorated amount.

MGSD competency-based paths to credentials

From 2026–2027 through 2028–2029, MGSD runs competency‑based high school pathways that lead to industry credentials or an associate degree, with a focus on healthcare and high‑tech. MGSD partners with Mitchell Community College and hires experts to design courses, credential rules, and digital tools. Vendors must meet strict quality standards and provide training and coaching. Students can join by the 2028–2029 school year.

More college options for MGSD students

Mooresville Graded School District can offer mastery and CTE tests outside state windows. Mitchell Community College can enroll MGSD students in college courses before 11th grade and give access to its courses. MGSD can swap many graduation credits with MCC or local competency‑based courses, except English, math, science, and social studies. MGSD can also use restart‑model flexibilities.

More excused absences for students

Starting in 2026–27, schools must excuse absences for illness, valid educational activities, and some family or farm needs. They must excuse at least two days each year for religious observance, some military leave, and some equestrian or agricultural events. Students must be allowed to make up missed tests and work. Released time for religious instruction is allowed. Officials who fail to follow these rules face a Class 3 misdemeanor, under set limits.

More meal access, no school penalties

When a local district provides food service to a regional school through an interlocal deal, it can count eligible regional students for federal meal funding. Regional schools cannot punish students with administrative penalties for unpaid meal debt. This helps keep students fed and avoids school‑level penalties tied to meal balances.

More mental health lessons in school

Schools must teach age‑appropriate mental and emotional health. Lessons cover warning signs, where to get help, coping skills, and stigma reduction. Schools must also teach how social media affects health. Classes must include addiction topics, like the brain basis of addiction and the risks of vaping, alcohol, cannabis, opioids, and prescription misuse.

More pay options for court staff

Courts may accept city or county funds to add to salaries for judicial employees, including magistrates and DA staff. These local supplements can end at any time and do not count toward State retirement compensation. Time served as a resource prosecutor now counts toward longevity pay at the usual service steps.

More support for IDD job training

For 2026–2027, $640,000 recurring funds two positions to grow work‑based learning and pre‑apprenticeships for people with IDD. $810,000 recurring can fund marketing, evaluation, online resources, staff training, and infrastructure. The rest of the funds expand the IDD program.

NC Promise Reserve supports low tuition

The law creates the NC Promise Tuition Plan Reserve to help buy down tuition at participating UNC schools. The Board aims to keep at least $3 million at the start of each year if funds are available. Money can be spent below that level as needed during the year. Unused funds stay in the Reserve and do not revert.

New biotech school for Northeast families

The state creates the Northeast Regional School of Biotechnology and Agriscience for grades 7–12. Students living in Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Edgecombe, Gates, Halifax, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Pitt, Tyrrell, or Washington can apply. If seats are limited, a lottery is used. The school must meet state standards, teach financial literacy and computer science, and offer ways to earn community college or UNC credit. The board must also make a plan to provide transportation for enrolled students.

New literacy standards for middle school

The State Board must create literacy standards for grades 6–8. The standards must align with the Lexia professional learning used for teachers.

New process to challenge school materials

Each district creates a community media advisory committee. Parents of enrolled students, teachers, or local residents can file written challenges for set reasons. The committee holds a hearing within two weeks and recommends a decision within two more weeks. The local board then decides at its next meeting. The board’s decision is final.

Parents can inspect school materials online

By July 1, 2026, each school unit must adopt a policy that lets parents take part, explains how materials are used, and allows parents to review all instructional and supplementary materials in person and online. The policy must include a clear objection process.

Reading checks now cover K–5

The State provides reading assessments for kindergarten through fifth grade. Local schools must use them to track progress, find problems, and guide help. The testing expands from K–3 to K–5.

Schools must post approved fees online

Districts must post a schedule of approved fees, charges, and fundraising on their website by October 15 each school year. If they change it, they must update the site within 30 days. This does not cover instructional material fees set by the State Board.

Schools must post crisis hotlines

Public and qualified nonpublic schools must give students the Suicide and Crisis Lifeline (call 988 or text HOME to 741741) and the NC Peer Warmline (855‑733‑7762). Schools must verify the numbers every year. They must display them on new student IDs for grades 6–12, on school websites, on issued devices’ home screens, in agendas, during awareness events, and on registration papers.

Set pay for top state officials

Starting July 1, 2026, the Governor is paid $209,165 a year. Each listed Council of State member is paid $173,436. The law also sets salaries for listed executive officials (for example, State Controller $202,003) and for judges and district attorneys (for example, Chief Justice $209,165; Superior Court Judge $174,199).

State keeps funding Imagination Library books

The state continues funding to expand access to Dolly Parton’s Imagination Library. Registered children keep getting monthly age‑appropriate books by mail.

State pays PESA test fees; opt‑out allowed

For PESA scholarship students in grades 3, 8, or 11 who have not been opted out, the state pays the cost of the required national test. Parents may opt out of testing under rules the Authority sets. This reduces out‑of‑pocket costs for eligible families who test.

State pension contribution rates for 2026–27

For 2026–27, the State sets employer contribution rates as a share of covered pay. Totals include: Teachers and State Employees 26.10%, State ORPs 31.10%, State LEOs 27.09%, CJRS 14.59%, and LRS 49.80%. To estimate dollars, multiply your covered salary by the total rate for your group.

Students can take devices during absences

Starting July 1, 2026, students may take instructional materials and school‑issued devices home for the length of an absence or a suspension.

Superintendents no longer must live in-county

Residential school superintendents no longer have to live in the school’s county unless the board requires it. Boards may still adopt a residency rule.

Support to run foster‑youth aid

The law gives $50,000 in 2026–2027 to the State Education Assistance Authority to administer the child welfare postsecondary support program. It also provides $339,493 in 2026–2027 to hire a contractor to run the program and offer case management.

Teacher training with Lexia Aspire

DPI will use funds to provide Lexia Aspire Professional Learning to middle‑grade teachers (ELA, math, science, social studies, English learners, and Exceptional Children) during 2026–2027. DPI will prioritize teachers whose students stand to benefit most and may use any remaining funds for more professional learning.

Teacher-schedule pay for state-run schools

Employees at listed State‑run schools who are paid on the Teachers Salary Schedule are paid as Section 7A.1 authorizes. Covered schools include DHHS and public safety schools, the Governor Morehead School for the Blind, both State Schools for the Deaf, State Board of Education schools, the NC School of Science and Mathematics, and the UNC School of the Arts.

Temporary computer science waivers and data

For the 2024–25, 2025–26, and 2026–27 school years, a district can tell DPI by July 1 if no approved computer science course is available. That waives the course offering that year and the related graduation requirement for that ninth‑grade class. For 2026–27, districts that notify must send a course plan by January 1, 2027. The State Board’s annual computer science participation report is now due each March 15 and must include statewide and school‑level data.

Top scorers placed in advanced classes

Students who score at the highest level on end‑of‑grade or end‑of‑course tests are put in the next advanced class in that subject, including English Language Arts and math. A 7th grader with the top math score takes a high school math course in 8th grade. The school cannot remove a student from advanced placement unless a parent gives written consent after getting information. This starts in the 2027–2028 school year, and the state reports each year by December 15 on placements and student data.

Uniform travel pay for Sentencing Commission

Starting December 1, 2026, Sentencing Commission members receive travel reimbursement at the rate used for Judicial Branch Commission employees. This standardizes travel pay for all members.

Updated K–12 health standards by 2028

The State Board must update the K–12 Healthful Living standards and include new listed health topics. Schools adopt and teach the new standards starting in the 2028–2029 school year.

Workers' comp for SBI reserve officers

SBI reserve officers are treated as SBI employees for workers’ compensation while doing duties approved by the Director. They have coverage for injuries during approved service.

90 days to seek timber relief

The Forest Service reopens landowner applications for the Timber Loss Relief Program within seven days of this law. It accepts new applications for 90 days after reopening. Eligible landowners with timber loss can apply in that window.

No fee for duplicate registrations

You no longer pay the $21.50 fee when you request a duplicate registration card. This saves you $21.50 each time you apply for a duplicate.

Biotech loan funds reserved for lending

The NC Biotechnology Center must use recurring early‑stage loan funds only for loans, not administration. The Center can shift up to 10% of each allocation between specified funding lines if it advances its mission. The Center must report yearly on how it spent the funds.

Easier billboard moves and cure period

Owners of lawful billboards taken for right‑of‑way or blocked by a sound wall can relocate and rebuild under set rules. Moves must meet distance, location, and standards, and some sites need local consent. For permit issues, the state cannot revoke for a first violation and must give written notice and at least 60 days to fix later violations (except for safety threats or fraud).

Easier permitting for recovered materials

Beginning January 1, 2027, recovered materials that meet state rules are not subject to solid‑waste permits. To qualify, manage it as a commodity, remove 75% of stored material by December 31, and avoid hazardous or foreign contaminants and speculative stockpiles. The agency can require proof or a beneficial‑use decision.

Easier vegetation rules for billboard owners

Billboard owners can submit a beautification and replanting plan instead of standard rules. You or your licensed applicator may apply herbicide up to 5 feet inside the right‑of‑way (not on native dogwoods). From the private side, with landowner consent, you may trim small plants near the fence without a permit or fee. The Department must approve or deny the annual vegetation permit within 30 days after you pay; no response means approval. The Department cannot deny a relocation site just because vegetation blocks the view; you may clear private vegetation with written landowner consent.

Fewer repeat checks for adult care homes

If an adult care home passed a DHSR inspection in the last three months with no related deficiencies, other routine inspections must accept those results. This does not cover complaints, follow‑ups, or incident‑based checks. The rule applies to inspections on or after October 1, 2026.

Grants to use products from scrap tires

The Department may use up to 15% of Scrap Tire Account revenue for grants that encourage using processed tire materials like crumb rubber, mats, or tire‑derived fuel. Grants are made with input from Commerce, environmental assistance, and, when needed, DOT.

Loan fund for early-stage agtech companies

The state provides $500,000 in recurring funds in 2026–2027 for early‑stage loans to North Carolina agricultural technology companies. This creates a small loan source for eligible agtech startups and farm businesses.

More DMV services through local contractors

DMV pays commission contractors small per‑transaction amounts ($1.68, $1.40, $1.16) and $1.89 when combined, plus performance bonuses up to $90,000 a year. Initial contracts can run up to 8 years; renewals up to 2 years. Contractors can sell their business and transfer the contract and DMV equipment to a qualified buyer. DMV can use contractors for in‑person renewals statewide (not in certain county offices) and must keep at least the current number of service outlets. DMV keeps an electronic list of valid dealer and loaner plates, and must issue an RFP by Jan 1, 2027 for in‑home Class C license renewals in Forsyth County with strict security and reporting.

No preapproval for dental management deals

Dentists and dental management companies do not need Board preapproval for their management agreements until new permanent rules are adopted. The Board can still review an agreement later if there is a valid complaint.

Use some nonhazardous waste in projects

Beginning January 1, 2027, DEQ may approve certain nonhazardous waste for use at other sites or projects. Approvals can last up to five years and may require testing and conditions. Applicants must file annual usage reports and apply for renewal at least 60 days before expiration. Any fees go to the Solid Waste Management Account.

$2M one-time to merge code councils

The Department of Labor gets $2,000,000 in nonrecurring funds for 2026–2027 to merge the Building Code and Residential Code Councils and keep services running. The funds can also create or reestablish positions. Money is available starting July 1, 2026.

Annual reports on plate readers

Each year by March 1, the SBI must report for every agency using license plate readers on state roads. The report includes each agency’s written policy, data‑request counts, and the number of cameras.

Capitol Police job reporting rules

The State Capitol Police must send a full job list each year by September 1. Within 30 days of creating any receipt‑funded job, they must also report job type, agency, salary, and contract terms to lawmakers. All reports must be sent electronically.

Clearer rules to accept grants

Agencies can accept grants with the budget director’s approval only if they don’t add future state costs and have match money on hand. Small grants under $2,500,000 can be budgeted and spent as the award says. Emergency grants can be used up to the greater of 1% of total grants for the year or $10,000,000. Contracts must require recipients to seek other funds and return duplicate funds.

Clearer, more detailed budget reports

The base budget must use the State’s uniform chart of accounts and show side‑by‑side actual, certified, and proposed amounts to at least the three‑digit level. For the Highway Fund, the certified budget must include a four‑digit account appendix covering positions, operating spending and receipts, and intrafund transfers. Work‑order positions must be budgeted in existing fund codes.

Extra prosecutors for backlogs, disasters

The Council of District Attorneys can assign up to 16 assistant DAs to serve as special assistant U.S. attorneys in select counties. A district attorney can request temporary help for big case backlogs, urgent public‑interest cases, or when a county is under a declared disaster. The Executive Director sets the length and pay, and special prosecutors may be appointed as needed.

Family finance courts: rules and reports

The Chief Justice may set extra rules to run the complex family financial case program. A first performance report is due by August 1, 2027, then every August 1. Reports must list requests, designations by county, outcomes, average timelines, and recommendations. These sections are effective July 1, 2026.

Faster emergency reserve loan payouts

The Department will set rules for paying out NCUC Emergency Reserve loans. It may allow advance or up‑front payments instead of only progress payments. These rules take effect July 1, 2026 and apply to loans made on or after that date.

Guard may buy land, long leases

The North Carolina National Guard may seek federal reimbursement for property costs tied to project NG26‑1, and any reimbursement goes to the State Capital and Infrastructure Fund. The Guard can buy needed property and enter or extend ground leases for 50 to 99 years for the Aviation Support Facility.

Help for counties holding state prisoners

In FY 2026–2027, the state reimburses counties up to $50.00 per day for each convicted inmate, parolee, or post‑release supervisee who waits in county jail to transfer to state prison. Starting October 1, 2026, the Department reports quarterly on these payments to legislative leaders.

Higher caps for aquarium and zoo repairs

The approval limit for repair and renovation projects at the NC Aquariums and NC Zoo rises from $500,000 to $750,000. Projects must be repairs or renovations, paid from their Funds, and cannot require more ongoing state operating money.

Higher reimbursements to counties, sheriffs

Counties get at least $50 per day for each misdemeanant they house starting July 1, 2026. Participating sheriffs get at least $70 per day per inmate for roadway cleanup in months that meet the minimum work‑hours, for work after October 1, 2026. The higher cleanup rate is paid only while the specific funds last; those funds do not revert.

Insurance and Fire Marshal office plans

The Department of Insurance and the Office of the State Fire Marshal must seek State‑owned office space as their private leases end. If no suitable State space is ready by the set dates, each renews its lease for one year. The budget office also creates a separate budget code and division funds for the State Fire Marshal.

Labor Department can bypass purchasing oversight

By written notice, the Department of Labor can opt out of Administration oversight for purchases, contracts, real property work, and leasing. Any real property purchase under this election still needs Council of State approval.

Legislature can carry forward its funds

The Legislative Services Commission decides how General Assembly funds are used and which funds stay available after a budget period or project. Funds appropriated to the General Assembly do not revert except as the Commission directs.

Limited procurement rules for a project

The law exempts the Authority and its project business from certain state procurement laws for specific design and construction work. This can speed contracting for that project. The exemption only applies to the contracting actions named in the law.

More ADAs can serve federally

The cap on assistant district attorneys who can serve as special assistant U.S. attorneys rises from 12 to 16. Up to four more ADAs may be assigned if funding and assignment rules allow.

More beds for women inmates

Adult Correction may contract with The Center for Community Transitions (or its successor) to buy beds for minimum‑security female inmates. The Center must report each year by February 1 on cost per inmate and average daily population vs. bed capacity, starting in 2027.

More funds to clear abandoned boats

Starting July 1, 2026, agencies and contractors removing derelict vessels are liable only for gross negligence or willful misconduct. For certificates issued on or after October 1, 2026, 40% of each one- and three‑year boat certificate fee goes to the Shallow Draft Fund and 10% is used to remove abandoned vessels. This funding and authority continue past FY 2026–27 but end when the 2027–2029 budget act is enacted.

More members and staff for prosecutors

The Council of District Attorneys adds seven elected members who start on July 1 after the election, with staggered first terms. The Conference can advise on training and manuals and may contract with the UNC School of Government. Each district attorney keeps one administrative assistant and at least one investigator, with more allocated by need and funding. Investigators can get travel and subsistence pay like other State employees.

More rail reporting and local participation

Railroads and other public works with State ownership stakes must file broader annual reports to lawmakers and auditors, including audited financials and key operations data. The State‑owned railroad must provide extra details on plans, dividends, property, officers, and related‑party deals, and it is subject to audits. Tabor City may join State and federal railroad revitalization programs and provide matching funds; this authority ends December 31, 2029.

More seats and new chair for Indian Affairs

The State Commission of Indian Affairs grows from 21 to 23 members, adding two seats for the Catawba Indian Nation. The seat change takes effect 10 days after the Commission grants State recognition to the Catawba Indian Nation. The Governor must appoint the chair from among the Indian members, the full Commission must ratify, and the chair serves a two‑year term.

More state trails, lands, and grants

The State authorizes the First Broad River State Trail and creates the Brushy Mountain State Natural Area. For 2026–2027, funds go to the Complete the Trails Fund and the Great Trails Fund to plan, build, extend, and maintain trails. Cities, counties, regional councils, public authorities, and nonprofits with an MOU may get grants for planning, land or easements, construction, amenities, maintenance, and matching funds. The State may accept donations and use existing conservation funds. The usual “adequate appropriations” rule is waived for adding the First Broad River Trail.

More support for forests and Saluda Trail

$12 million moves to the NC Forest Service for equipment, capital needs, or land. Money for the Saluda Grade Trails Conservancy can also pay to design, plan, and build the trail and to match other trail grants.

Probation fee fund can train staff

Fees collected for the Interstate Compact Fund can also support training and equipment for Community Supervision and Reentry in the same biennium. This is allowed only if enough money remains to run the Interstate Compact Program. The Department must report by October 1 each year on amounts used and why.

Report on capital case attorneys

By June 1, 2027, and each year after until funds run out or revert, the Department must report on time‑limited capital case attorneys. The report must show effects on the capital caseload, how many capital cases each attorney worked, and certify each attorney focused only on capital cases.

SBI gains IT and carry flexibility

The SBI is not covered by the state IT rules unless the Director opts in by a written election. SBI employees designated in writing by the Director who hold a valid permit can carry a concealed handgun in areas that are otherwise off‑limits, unless federal law says no.

SBI keeps seized‑asset transfers in FY27

Seized and forfeited assets transferred during the 2026–2027 fiscal year are credited to the SBI budget. The size of the boost depends on how much is transferred.

SBI takes over Samarcand training site

All Samarcand Training Academy duties and property move to the SBI, including the former East Montgomery High School facility. The SBI controls use of the site. The law provides $4.5 million for the 2021–2022 year to the SBI for repairs and renovations for the Safer Schools Training Academy.

School safety mapping by 2027

The State Bureau of Investigation and the Center for Safer Schools must finish contracting for school critical-incident maps by January 31, 2027. This sets a hard deadline so schools and first responders get the maps on time.

Seized assets aid public safety agencies

In FY 2026–2027, seized and forfeited federal assets sent to Adult Correction and to Alcohol Law Enforcement are credited to those agencies’ budgets. The SBI must report when it receives seized assets, before use, and by September 1 each year on receipts and spending; similar annual September 1 reports apply to ALE and Adult Correction. The law also confirms state law‑enforcement agencies may receive funds from the U.S. Justice, Treasury, and Health and Human Services departments.

Settlement funds tracked; $25M to Golden LEAF

The Controller must track each settlement’s money in the Settlement Reserve Fund. School penalty proceeds must go to the Civil Penalty and Forfeiture Fund. Each year, $25 million from tobacco settlement proceeds goes to The Golden L.E.A.F., Inc. New federal or state tobacco settlement receipts go to the Settlement Reserve Fund unless barred by law. These rules apply to settlements or orders entered after this law takes effect.

Smoother court filings and IT purchases

The Judicial Department can use leftover Worthless Checks Fund balances next year to buy or fix office or IT equipment after reporting. Judges may allow manual signatures on some out‑of‑court orders; the party who gets the manual signature must eFile it. This does not apply to criminal judgments. The annual business court report now goes only to the Chief Justice and key committee chairs by February 1, effective October 3, 2026. A Human Trafficking Commission position is made permanent.

State covers expert witness costs

The Council of District Attorneys pays expert and other witness fees in State cases. It also covers travel, lodging, appearance costs, and other necessary expenses of counsel, under Council rules.

State fleet and property reports

Each year by February 1, the state must report all fleet vehicles, their use, and current lease and per‑mile rates, plus telematics details. By November 15, 2026, the state must also list all land and buildings it owns or leases and note highway‑adjacent truck parking locations.

State forgives Fair Bluff disaster loan

The State forgives any remaining Hazard Mitigation Grant Program loan balance for the Town of Fair Bluff. The town no longer owes this debt.

State publications go digital by request

State officials must give printed reports and maps to certain institutions on request, but those institutions can choose an electronic copy instead. Counties no longer must send cemetery lists for distribution. The law updates the Secretary of State’s publications duties and repeals several old statutes tied to that office. Court advance sheets and most State Museum materials are excluded.

State support and challenge grants for Symphony

Beginning July 1, 2026, the State gives the North Carolina Symphony $2,000,000 each year. Extra State funds are paid when it raises private money: $600,000 at $2 million raised, $700,000 at $4 million, and $700,000 at $7 million. Endowment transfers cannot count toward these goals.

Stronger oversight of child support funds

Counties must file a yearly plan to get federal incentive money, then report how the funds improved services and how dollars were spent. NCCSS must also report every year by November 1 on how incentive funds helped centralized services and county programs, and any changes to the funding process.

Stronger prison nurse staffing plan

By February 1, 2027, and every year after, Adult Correction must report nursing positions filled and vacant, contract nursing use and cost, and progress on hiring and keeping permanent nurses. The Department may convert contract‑nursing funds into permanent nursing jobs with budget office approval if it improves security, saves money, and improves care, and must report any conversions.

Stronger state audit oversight tools

The State Auditor can opt out of some Administration oversight for buying, leasing, and surplus property, with Council of State approval still needed to buy real property. Local governments must report any approved economic development payment over $25,000 to the Auditor. The Auditor creates the forms, collects those reports, and sends them yearly to oversight bodies. The Auditor will also audit the Veterans Home Trust Fund for July 1, 2023–June 30, 2026, and report by March 1, 2027.

Stronger tools for the State Auditor

SBI officers can help the State Auditor with investigations when asked. The Auditor may assess IT security, issue recommendations, and require written responses. The Auditor can shift some audit jobs to receipt funding, and those funds do not revert. Audited agencies must send financial statements within 60 days after their Annual Comprehensive Financial Report deadline. The Auditor can contract with federal audit agencies and review subgrantees’ books. If an auditee responds within 15 days, the response is included in the final report.

Study synchronized streets for safety

DOT must study coordinated traffic signals and their effects on safety, travel time, and the environment. The study will set where they fit best and how they work with major truck routes. The report is due July 1, 2027.

Track domestic-violence homicides statewide

The SBI will run a database for homicides where the victim and offender had a personal relationship. All law‑enforcement agencies must report qualifying cases, including relationship type, any protective order, and whether the offender was on pretrial release. Each year by April 1, the SBI reports the prior calendar year’s data to legislative oversight.

Veterans Home fund keeps more money

Beginning June 30, 2026, the Veterans Home Trust Fund no longer sends 10% of its receipts to the Cemeteries Trust Fund. Money left at year end stays in the Veterans Home Trust Fund. The Veterans’ Affairs Commission may let the Assistant Secretary spend trust funds, but it must vote again each time a new Secretary takes office.

Year‑end savings and pension planning

Agencies must return unspent money to the right fund at the end of each fiscal year, unless another law says otherwise. The Governor’s budget must show the state’s projected TSERS employer contribution as estimated pay times the expected rate.

Protect engineering and surveying work

Unlicensed engineering or land‑surveying is now a Class 2 misdemeanor, including misuse of titles or seals. The Attorney General serves as the Board’s legal adviser, and the Board may hire its own counsel. Some changes apply retroactively to July 1, 2022, and others start October 1, 2026.

Task Force data kept nonpublic

Data collected by the Task Force is only for Task Force use and is not a public record. This protection runs through December 31, 2028.

Tribal partners added to child advocacy teams

The Eastern Band of Cherokee Indians Department of Public Health and Human Services is added to the Children’s Advocacy Center law. The tribal prosecutor joins local multidisciplinary teams, and child‑protection information may be shared with that prosecutor.

Airport upgrades and Greensboro water projects

Greensboro receives $5 million for water and sewer upgrades tied to the airport project. The law also provides $10.2 million in 2025–2026 and $200,000 in 2026–2027 for renovations at an existing airport hub and to offset FAA‑related costs.

Capitol upkeep plan and monuments

The Legislature’s services office must maintain a long‑term plan to care for the State Capitol and Capitol Square, covering building systems, structure, and grounds. It will also buy and place two monuments: one for North Carolina’s Revolutionary War contributions and one honoring Reverend Billy Graham. Unspent DOA22‑3 capital funds are moved back to SCIF and allocated to NCGA26‑1 for these Capitol projects and other state improvements and planning.

Clearer tracking of disaster funds

Agencies must label disaster budget funds with the law section, align names in the state system, and link programs to their legal and accounting details. Reports to GROW‑NC, OSBM, or the State Auditor must include codes and reversion dates. This improves how disaster dollars are tracked and reported.

Easier stormwater, dam and tire cleanups

If you received a Coastal Federation stormwater retrofit grant, DEQ can modify your permit to match real conditions or allow innovative designs that protect water quality. The Dam Safety Emergency Fund can pay for downstream flood maps at high‑ or intermediate‑hazard dams. The state can use leftover Scrap Tire Account money to clean up abandoned or illegal tire sites when no other funds or responsible party exist.

Ferry funding and school bus toll break

The state creates a Ferry Capital Special Fund to hold ferry tolls and route receipts for ferry boats and other capital needs. School buses and vehicles carrying students for a school do not pay ferry tolls. This applies to public and nonpublic elementary and secondary schools.

Funding for UNC campus planning

The law authorizes up to $35 million for planning and infrastructure at Carolina North (UNC–Chapel Hill) and up to $2 million for an Appalachian State project. These caps cover 2025–2027 unless lawmakers approve more.

Funds locked for detention repairs

Money for project DPS23‑1 must be used to repair and renovate youth detention facilities. Columbus County can use the remaining part of a prior $10 million allocation for HVAC and sprinkler projects at the detention center.

Grants for local capital needs

The state provides $65 million to the Local Government Capital Grant Program. Up to $30 million can go to qualifying volunteer fire departments. Madison County also receives a $27 million directed grant and may still apply for separate program awards.

Help for water systems after Chantal

The state creates a fund with $10.7 million to reimburse local governments for water and wastewater damage from Tropical Storm Chantal. Eligible counties include Alamance, Caswell, Chatham, Durham, Granville, Moore, Orange, Person, and Wake. Funded projects must be added to the state’s annual water infrastructure report.

Higher three‑year caps for water grants

Local water systems can get more help over three years. Merger/regionalization feasibility grants are capped at $75,000 over three years to the same recipient. Asset inventory and assessment grants are capped at $225,000 over three years to the same recipient.

More child support funds to counties

At least 85% of federal child support incentive payments must go to county child support programs. The state must keep using its current distribution formula until it adopts a new one, and any new formula must be phased in over four years.

More funding for National Guard facilities

The State authorizes up to $28 million for a National Guard matching fund and up to $11 million, $8.8 million, and $15 million for three Guard projects in 2025‑2027. Up to $7 million may be disbursed in FY 2026‑2027 as the State match for federal armory projects designated in the Guard’s plan. The Department must report by June 1, 2028, and every two years after, on project status, costs, dates, and any funds expected to revert.

More options for inspecting loan projects

For state‑loan projects, inspections can be done by Department staff, a licensed professional engineer, or, for Utilities Commission Emergency Reserve loans, by the Commission. This can speed checks and oversight.

More reports on capital transfers

OSBM must report which capital accounts it reviewed, what transfers it made, how much money moved, and which accounts were exempt. OSBM includes this in its required state reports.

More work-zone signs and ferry tracking

The law provides a one‑time $1,000,000 in FY 2026‑2027 to buy dynamic speed display signs for highway work zones. By October 1, 2026, and then every quarter until funds are spent, the Ferry Division must report which vessels are scheduled or under contract for dry docking, with estimated and actual costs and totals used.

New fund to maintain veterans cemeteries

The law creates a Veterans Cemetery Trust Fund and credits its interest back into the Fund. The Department can use interest earnings for operations: up to $400,000 a year for up to four full‑time jobs and up to $350,000 a year for a maintenance contract. By September 15 each year, the Department must report cemetery conditions, spending sources, staffing, and interment counts to legislators.

New loan fund for private water systems

Beginning July 1, 2026, the law defines “emergency operator,” “NCUC,” and “private system” for water and sewer programs. It creates the NCUC Emergency Reserve inside the State Water Infrastructure Fund to hold State dollars for loans to private water and sewer systems. DEQ must set up separate accounts for each loan type and can make loans for authorized projects.

Ongoing funds for state audit

The State Auditor receives $500,000 each year starting in FY 2026‑2027 to pay for the annual financial report audit. This keeps the State’s main financial audit funded on a recurring basis.

Parks and historic sites upgrades

The law authorizes up to $4.4 million, $4 million, $10.662 million, and $6 million for four Department of Natural and Cultural Resources projects in 2025‑2027. If OSBM finds unspent Access NC funds, it can move them to DNCR for accessibility projects at State Parks and Historic Sites.

Pay Plan Reserve backs required pay

Beginning July 1, 2026, the Pay Plan Reserve in the General Fund covers shortfalls in statutory or scheduled pay for listed groups like State Highway Patrol, SBI and ALE officers, correctional officers, and probation and parole officers. Money is used only when regular appropriations are not enough.

Rebuild Fair Bluff riverwalk

The state moves $5 million to fund the Town of Fair Bluff’s destroyed riverwalk project. This is a direct grant for rebuilding.

Restore and plan the Old State Capitol

The state authorizes up to $15.5 million to restore and plan the Old State Capitol and grounds during 2025–2027. Any increase needs new approval.

Safer roads, dams, and flood alerts

The state gives $30 million for private road and bridge repair, including $8 million for volunteer groups, with required reporting. It provides $20 million for dam safety grants, capped at $4 million per project. Another $1 million funds landslide maps for roads and critical infrastructure. DOT receives $1,528,539 to buy and install flood gauges for the state’s alert network.

Small boost for plant preserves

The law transfers $75,000 in FY 2026‑2027 to the Department of Agriculture to buy land and manage State plant conservation preserves.

Stronger oversight of water utilities

Beginning July 1, 2026, emergency loan rules require a detailed cost estimate approved by both the Department and the Utilities Commission, clawbacks for noncompliance, and allow amended requests within loan limits. Regulated water or sewer utilities with three or more DEQ violations in 12 months are flagged to the Utilities Commission for investigation and fixes, with online compliance status posted. Local governments and water companies can sign standardized debt instruments payable to the State to document these loans, using forms and delivery procedures set by the Treasurer and Local Government Commission.

Upgrades to SBI and Highway Patrol

The State authorizes up to $8.071 million for an SBI/SHP maintenance building, $930,353 for DPS property acquisition, $33.459 million for SBI Logistics Building Phase 2, and $3.318 million for SBI data center security. It also provides a one‑time $10.5 million for State Highway Patrol Building 7.

Water funds and local authority expanded

CDBG Infrastructure dollars must stay in the Infrastructure category. $801,983 shifts to Burke County for water and sewer work. $3 million in Raeford targets Cameron Heights sewer lines or other water/wastewater projects. Counties and cities are clearly allowed to own and run water systems, including dams, intakes, and treatment plants.

New board for supplemental retirement

Beginning July 1, 2027, a new board runs the state’s supplemental retirement and deferred comp plans. Ex officio members can name a designee to vote when absent. The board can hire experts like actuaries and investment advisors and must have appointed members take an oath filed with the Secretary of State.

Treasurer can invest Veterans Cemetery Fund

The State Treasurer may invest the North Carolina Veterans Cemetery Trust Fund under the same rules used for other special funds. This helps manage and grow the fund for cemetery operations.

Admin caps and secular use for family grants

In 2026–2027, CPCF may use no more than 10% of its funds for admin and must use state funds only for nonreligious purposes. The Human Coalition may use up to 5% of its Continuum of Care grant for admin; the rest must fund services.

Audit to cut Medicaid waste

The State Auditor receives $2.5 million one time in 2026–2027 to investigate Medicaid waste and abuse. Findings and recommendations are due by February 28, 2027.

Better real-time data on crisis care

Starting in 2026–2027, the state gives $500,000 each year to enhance CJLEADS with crisis‑care data. Features include involuntary commitment notifications (as federal law allows), real‑time mental health bed availability, and a behavioral health resource catalog. All needed data‑sharing agreements must be signed by October 31, 2026.

Fund for rural doctor training

The state creates a Rural Residency Medical Education and Training Fund to support training and residency programs. Capital projects are capped at $200,000 per entity each year, and up to 5% of the fund may be used for administration. Grants remain available until spent.

Grants for jail addiction treatment

Starting in FY 2026‑2027, the state funds $2 million each year for competitive grants to sheriffs’ offices to start, expand, or maintain medication‑assisted treatment in county jails. Each year, 37.5% goes to new programs, 37.5% to expansions, and 25% to maintenance.

Mental health funds tied to Medicaid surpluses

If, on or after June 1, 2026, the State certifies a Medicaid surplus and enough cash in Budget Code 14445, DHB transfers up to $30 million (or the surplus, if less) to DMH/DD/SUS for single‑stream funding. A second transfer may occur on or after June 1, 2027 under the same cap and cash‑on‑hand rule. The 2027 transfer authority is effective July 1, 2025.

Modern data systems for substance use care

The state replaces outdated data systems that support substance use programs like DWI Services and Drug Education School. After business‑case approval, up to $1.2 million in 2026–2027 may start the project. After completion, up to $1.2 million each year may support operations and maintenance.

More insight into SNAP and TANF spending

In 2026–2027, DHHS buys detailed data on SNAP and TANF transactions in and out of state. The Division must analyze and report by June 30 and December 31 each year and post reports online. The first report explains how the data will be used to check fraud and abuse. The Division must redact data so no individual recipient can be identified.

More yearly funds for local health

Beginning in FY 2026–2027, $1.5 million in recurring money goes to the Division of Public Health. The funds are split equally among local health departments. They may be used only for activities allowed under the General-Aid-to-Counties Agreement Addendum.

Overdose‑reversal drug supply contracts

DMH/DD/SUS must use an RFP to sign contracts for opioid antagonist products. The State keeps only one contract per distinct product, each for one year with up to three renewals. Current contracts stay in place until at least one new manufacturer is chosen to avoid supply gaps.

Primary care data and privacy rules

The Primary Care Payment Reform Task Force collects primary care spending data in a HIPAA‑compliant way. Any entity asked for data must provide it within 45 days. DHHS must run a detailed data‑security plan with access rules, audits, breach notices, retention, and staff training. These duties apply while the Task Force exists, through December 31, 2028.

Rare Diseases council created in DHHS

The law creates an Advisory Council on Rare Diseases in DHHS. The council has 19 members appointed by DHHS and state leaders; the Secretary names the chair. DHHS provides staff support, and members can be removed for cause.

Rare Diseases Council: bigger role, reset terms

The Rare Diseases Advisory Council now advises the Governor, the health secretary, and lawmakers on research, awareness, policy, and how to target State funds. It must send an annual report by January 1 each year with its work and recommendations. All current member terms end October 1, 2026. New appointments are due by October 1, 2026, with initial three‑year terms and limited extra terms for some initial physician and patient‑organization members.

Regular updates on foster care assessment

The Division of Social Services must report by September 1, 2026 and every six months after. Reports continue until the trauma‑informed assessment is used statewide.

Rural ER hospital and doctor training

The law provides $25 million one time to Martin County to build a care center that includes a rural emergency hospital. It also gives $4.5 million one time to the UNC System Medical Education and Training Fund to support medical education. Both are for FY 2026–2027.

Stronger oversight of veterans services

OSBM runs the Veterans Life Center challenge grant, and the money can only pay for veteran rehab and reintegration unless lawmakers approve another use. The veterans agency hires a Program Director and must give hiring preference to veterans. Each year, the Assistant Secretary reports money in and out, resident counts, and ways to improve State Veterans Homes.

Stronger rules for maternal health grants

Beginning July 1, 2026, the grant plan uses a request for applications and requires measurable outcomes. The Secretary favors local health departments that add non‑State funds and must ensure State money does not replace other funding. By July 1 each year, the Secretary announces awards and reports grantees, amounts, and people served. Local health departments must file a yearly report by February 1 with services, demographics, and outcomes using UNC Gillings methods.

Study to tackle rising health costs

The North Carolina Collaboratory studies why health care costs rise and how to lower them. It must file an initial report by April 1, 2027 and a final report by April 1, 2028. Reports may include needed funding and draft legislation.

Support for rare disease advisory council

Council members get per diem and travel pay. A majority is a quorum, and the council meets at least quarterly. The state provides $250,000 one time in 2026–2027 to cover council operations.

Support for rural medical residencies

The UNC System Office must move previously appropriated funds into the Rural Residency Medical Education and Training Fund. This channels the money to support medical training and residencies in rural areas.

Targeted maternal and infant health funds

The state provides $1.727 million in 2026–2027 for evidence‑based programs in counties with the highest infant deaths, with yearly reports due by December 31. If federal abstinence‑education funds arrive for 2026–2027, they go to the State Board of Education and DPI must run the program under state and federal rules. It also funds a full‑time perinatal health consultant ($84,067) and bars using this money to replace existing funds.

Clear roles and funding for codes

The Building Code Council has exclusive power over its code books, and the Residential Code Council controls residential volumes. Council members and the Bureau director now get printed Code copies. Money from Code sales and remaining council balances go to the State Building Code Regulatory Fund for use by the Department of Labor.

More review of costly code changes

If a proposed housing code change would raise costs by $80 or more per home, the Council must request a fiscal note. Reviews of the energy, fuel‑gas, and mechanical codes for homes happen as soon as practicable, not by a fixed deadline.

NC A&T gets land for $1

The state conveys a Guilford County parcel to the NC A&T Real Estate Foundation for $1, as‑is, with certain property rules waived. If the foundation later sells it, the sale money must buy a new Chancellor’s residence.

New board to license code officials

Starting January 1, 2027, a 20‑member board in the Department of Insurance oversees qualifications for code officials. Board money goes into a state account for board use. The board reimburses the Division of Engineering for clerical help and is subject to State Auditor oversight.

Stronger enforcement of building code

Starting January 1, 2027, the Bureau can ask a court to order local governments to follow valid statewide code decisions. The Commissioner of Labor must refer suspected inspector misconduct to the Code Officials Qualification Board. The Bureau may hire needed staff within appropriated funds or the State Building Code Regulatory Fund.

AI added to computer science classes

The State adds artificial intelligence literacy to K–12 computer science standards. The State also updates the approved course lists to match. Schools use the new standards and lists starting in the 2028–2029 school year.

AI learning tools: options and oversight

The Office of Learning Research studies Khanmigo’s impact and must report results by April 1, 2028. DPI must file an annual October 15 report when funds are provided, showing usage, time spent, outcomes, and moderation flags. Schools may also contract with Magic School for grades 6–12 through a state program.

AI school safety grants reallocated

The law moves AI School Safety Pilot funds. $2 million goes to Davidson County Schools. The unspent part of $3.2 million previously for New Hanover County Schools goes to Alamance‑Burlington Schools. These are FY2024–2025 funds, and recipients must follow the pilot rules.

Annual report on low-performing schools

When lawmakers request it, the Superintendent must submit a report by March 15 each year. The report lists low‑performing schools, improvement plans that work, personnel actions taken, and recommended laws or local flexibilities.

Cap on small-district LEP cuts

For 2026–27, districts with 20,000 or fewer students cannot lose more than $50,000 in LEP funding compared with 2025–26.

Carolina North funds for infrastructure work

UNC‑Chapel Hill may use project UNC/CH26‑1 funds to build Carolina North infrastructure. Allowed uses include cleanup, grading, parking, roads, water, sewer, stormwater detention, power and telecom, and parks and landscaping.

Clear rules for Patriot Star scholarships

Nonprofits that run the Patriot Star Program must set written rules for paperwork, award amounts, how funds can be used, how long awards last, and when awards can be revoked.

Community colleges must post 988

Starting in 2026–2027, all community colleges must display crisis help lines. Show: “To reach the Suicide and Crisis Lifeline, call 988 or text HOME to 741741.” Show: “To reach the NC Peer Warmline, call 855‑733‑7762.” Post them on new student IDs, the website, student devices, calendars, and during registration. The State Board verifies the numbers yearly and updates them if needed.

Early help for student attendance

A pilot runs in FY 2026–2027 and FY 2027–2028 for up to 15,000 students in one selected unit. DPI picks a vendor by September 15, 2026 and launches by January 1, 2027. The system tracks attendance in real time, messages families in multiple languages, and supports MTSS‑aligned steps. The pilot gets $75,000 one time and funds stay available until June 30, 2028. DPI reports results by February 1, 2028.

Extra funds for two early colleges

Starting in FY 2026–2027, DPI provides $380,000 each year in recurring funds. The money goes to the units that host the School of Inquiry and Life Sciences at Asheville and the Durham Early College of Health Sciences.

Faster apprenticeships into teaching

By March 15, 2027, ApprenticeshipNC delivers a plan to speed apprenticeship pathways into teaching. The plan maximizes transfer of high school and community college coursework, includes online UNC coursework, and allows enrollment while working full‑time as a school employee and registered apprentice teacher.

Faster college credit transfer tools

The law provides $2.5 million one time in 2026–2027 to expand tools that speed the transfer of course credits. UNC, Community Colleges, and the Department of Information Technology will build technology to simplify transfers, compare options, and cut time and cost to degree.

Funds for IDD training at colleges

Community colleges in the IDD workforce training program receive $194,000 per college each year. This supports training for students with intellectual and developmental disabilities.

Imagination Library oversight and admin flexibility

NCPC may use up to 1% of Imagination Library funds for statewide management and up to 1% for evaluation. These funds are exempt from certain administrative caps and match rules. NCPC must also file an evaluation report by December 1 of each even‑numbered year on reading impact, participation, book distribution, community work, and sustainability.

Liability shield for safety trainings

Groups and people required to provide child sexual abuse and sex trafficking training are not civilly liable for acts or omissions in the training. This immunity does not cover gross negligence, wanton conduct, or intentional wrongdoing. The law does not create a new duty or standard of care.

Math teacher training pilot funding

In 2026–2027, DPI spends $4 million one time to contract with Carnegie Learning. The contract builds a math professional development pilot for grades 6–8 teachers and instructional leaders.

More child care data and oversight

The State adds 50th‑percentile child care rates to the next market rate study, along with the 75th percentile. DHHS continues performance‑based evaluation for Smart Start. This increases transparency and supports better funding choices.

More funds for afterschool ELISS

Starting July 1, 2027, DPI uses up to $7 million a year from the At‑Risk Student Services allotment for ELISS grants. Up to $200,000 each year can run the program. Grant recipients must report spending and student progress by July 15 to keep funding. DPI reports on ELISS results by September 15 each year.

More school safety help and training

Schools can get grants for evidence‑based trainings and for buying safety equipment, with charters eligible. Up to $350,000 in 2026–2027 may fund each of the listed training and student crisis‑service efforts. If SRO grant requests exceed the 2026–2027 SRO funding, the director may use School Safety Grant funds to cover the shortfall. The related board must follow school system purchasing rules and is exempt from most state administrative rulemaking, with court review still allowed.

More time for charter audits

Charter schools now have at least six months after the fiscal year ends to submit required financial audits. The Review Board may give more time. An earlier deadline still applies if tied to a charter renewal application.

NC Promise report due February 1

The UNC Board of Governors and four NC Promise chancellors must report each year by February 1. The report lists the funds needed to replace forgone tuition, counts resident and nonresident students, and shows the Reserve balance.

NCCAT training open to all teachers

NCCAT must provide professional development for teachers. All teachers can attend, no matter their years of experience. NCCAT may give added support for beginning teachers. The executive director must send its annual report to the State Board chair.

New career planning tool for students

For FY 2026–2027, DPI spends $1.37 million one time to license and run Year13 as the NC Careers planning tool. DPI works with Commerce and shares needed data so students and counselors can use it.

New K‑12 research office and funding

The law creates the Office of Learning Research within the NC Collaboratory at UNC–Chapel Hill. The office studies what K‑12 programs work and supports schools with evidence and implementation help. It receives $1.5 million each year beginning in the 2024–2025 fiscal year to operate.

One‑time funds for deaf and blind schools

The law gives $6 million one time for capital projects at three schools: $2 million each to the NC School for the Deaf, the Eastern NC School for the Deaf, and the Governor Morehead School.

Planning shift to weighted school funding

The state provides $300,000 in one‑time funds in 2026–2027 to form an expert work group to plan a three‑year move from the current model to a weighted student funding formula. The group must report to lawmakers by July 15, 2027.

Private schools must verify voucher testing

Starting with the 2026–2027 school year, nonpublic schools that accept Opportunity Scholarship students must certify each year that required tests were given and keep test records for four years. The Authority will verify testing at least 4% of these schools every year.

Publish local teacher pay schedules annually

Each local school unit must send all versions of its teacher and instructional support pay schedules to the State Auditor by November 15 each year (first due November 15, 2026). The Auditor gives them to DPI by January 15, and DPI posts them online and reports by February 15. The Auditor must publish data guidelines by September 15, 2026.

Regional schools recognized and funded

Regional school boards are added to the legal definition of public education boards and treated like local boards. Regional schools are listed as public school units and included in performance report cards. By July 1, 2027, the Northeast Regional School’s property and liabilities move to the Article 15A regional school and its board. Local current‑expense transfers now use local ADM plus the ADM share of students in innovative, charter, regional, and lab schools. Regional schools are exempt from the 100‑students‑per‑grade cap, and the campus location rule can be waived by the partner college.

Review and shift unused student aid funds

The State Education Assistance Authority must regularly evaluate student aid spending for programs it runs. It can recommend moving unutilized funds, and the UNC and Community College leaders may approve redistribution for that fiscal year. The goal is better access and use of aid.

Rules for Learning.com and MagicSchool

DPI may not block school units from using Learning.com while the State carries out its Digital Learning Plan. Money for MagicSchool must be spent only on the MagicSchool platform and services, related teacher training, and required rostering.

School boards: no proxies, roll calls

Local boards may not use proxy votes. A motion passes by a majority of those present and voting. Every vote must be a roll call and recorded in the minutes.

School grants must add, not replace

Grants to public school units must supplement current State or local funds. Schools cannot use these grants to replace money they already get. This protects services paid with existing funds.

School insurance and UNC planning updates

School boards can insure property titled to the board or the county through the State Public Education Property Insurance Fund. Boards must give 90 days’ notice and list current policies; the Fund coinsures while old policies run. UNC may use unspent planning funds to set systemwide space standards and must report recommendations by June 1, 2028.

School of Civic Life funding protected

Beginning July 1, 2026, recurring State funds for the School of Civic Life and Leadership may be used only for that School. These funds must add to, not replace, the School’s other funding.

School operations help and pay transparency

The Department of Administration provides finance, HR, and purchasing help to the schools for the deaf and blind through written agreements. It is not liable for a school’s acts. Starting January 2027, the State reports detailed teacher bonus results. By April 15, 2027, the State reports which districts got supplemental pay funds, how much staff received, average amounts, and any supplanting.

School safety grants: public report

By April 1, 2027, the Center for Safer Schools must report who received safety grants, how much each got, and what services, training, or equipment were bought. The report must also list recommendations for added school safety steps.

Schools report AEDs and training

By December 1, 2027, DPI reports how many schools have at least one AED. The report also describes cardiac emergency training paid for with state funds and any impact on school emergency readiness.

Seasonal hiring flex for ferries, parks

The DOT Ferry Division can hire outside the state’s Temporary Solutions Program when it needs peak‑season staff or special skills. Several parks and museum divisions can also hire outside that program. This gives those units faster, more flexible hiring for seasonal or skilled roles.

Shifting extra pay funds to cover raises

If an agency has more money than needed for mandated raises and benefits, the Budget Director can move the extra to agencies with shortfalls. Any remaining surplus is deposited into the Pay Plan Reserve for future pay needs.

Stronger privacy and records for college students

Public colleges must keep student disciplinary records that identify a student nonpublic. Summaries and aggregated data may still be shared. Licensed nonpublic colleges must preserve academic records and transfer them to the State Archives if they close; the State can step in to protect records at risk.

Studies on renewal, competency, and literacy

The Collaboratory studies the Renewal School System’s effects and reports by January 15, 2028. The Office of Learning Research evaluates competency‑based programs, reporting by March 15, 2028 and annually through March 15, 2030. It also reviews literacy training for grades 9–12 and studies Lexia Aspire for grades 6–8, with recommendations due April 15, 2027, an interim report October 15, 2028, and a final report October 15, 2029.

Study doubling NCSSM‑Morganton enrollment

The UNC Board of Governors must study boosting NCSSM‑Morganton in‑person enrollment to at least twice current capacity and consider more remote seats. The plan must list needed dorms, staff, materials, and costs. The Board must report by February 15, 2027.

Study of open enrollment options

The Collaboratory studies how districts could let domiciled students attend a school other than their base school. The study reviews application windows, capacity, transportation, denials, and appeals. Findings and draft legislation are due by April 15, 2027.

UNC civic leadership school launches

The new School of Civic Life and Leadership offers courses and public programs on democratic skills and American political traditions. In 2026–2027, the School must hire at least 20 faculty from outside UNC‑Chapel Hill who have or are eligible for tenure. It may not add joint or courtesy appointments until that hiring rule is met.

UNC must report on transfers

By March 15, 2027, the UNC System Office must report on the Transfer Initiative. The report lists participating campuses, transfer enrollments, and credentials earned, with data split by income, race, ethnicity, and other demographics when available.

UNC plan to centralize payroll data

The UNC Board of Governors must plan, with State IT and the State Controller, to put employee position and salary data for UNC entities into the BEACON payroll system. The plan is due to lawmakers by April 15, 2027.

AI pilot to speed permits

DEQ, with the IT Department, will pilot AI tools to modernize environmental permitting and plan review. The State will pick a U.S.‑based vendor with data on U.S. servers; the contract is exempt from certain procurement rules. The platform must support applicant and staff tools across many permit programs. Starting March 1, 2027, DEQ reports every quarter on contracts, use, lessons learned, and itemized costs until the pilot is fully in place. General Fund AI dollars assigned to DEQ fund the pilot.

Trade commissions for India and Ireland

The State creates two nine‑member trade commissions in the Department of Commerce. They meet at least twice a year to promote trade and investment with India and with Ireland. Each commission files its first annual report by October 1, 2027. These provisions take effect October 1, 2026.

No stacking of two local taxes

A county cannot have Article 43 and Article 43A local sales taxes in effect at the same time. This stops these two local‑option taxes from being charged together.

Up to $1M to run new credit

The State Education Assistance Authority may use up to $1,000,000 of 2026–2027 funds to administer the federal tax credit created in S.L. 2026‑6. The Authority must report the sources and amounts used and what is needed to run it in later years.

Appraise prison properties for reuse

The Department of Adult Correction must get appraisals for listed properties, including sites along the French Broad River and on Blue Ridge Road in Raleigh. The appraisals must show best and highest use and be sent to lawmakers by January 1, 2027.

Capital grants deadlines and carryforwards

Grants from the State Capital and Infrastructure Fund to non‑state groups must start paying out within 100 days and finish within nine months of this law. Funds do not revert until spent, project completion, or June 30, 2029. Separately, funds from Section 2F.2 of S.L. 2025‑89 also stay available until spent.

Other projects from agency receipts

Agencies may spend $80,604,481 in FY 2026‑2027 on listed capital projects using receipts or other non‑General Fund and non‑SCIF sources. This authorizes these projects without using the General Fund or SCIF.

Faster return of unused loan funds

Funds not spent or encumbered revert to the Savings Reserve by March 15, 2026. Golden LEAF can reloan net loan funds it received before that date. Starting March 15, 2026, and every six months after, Golden LEAF must send net loan funds it receives from lenders to the State Savings Reserve.

Two-year economic forecasts for counties

The state funds a two-year forecasting project at UNC with $3 million for FY 2026–2027. The money remains available through FY 2027–2028. Agencies must share needed data. Reports are due by December 1, 2026 and December 1, 2027.

Small UNC campus construction funds

The law authorizes SCIF spending caps for three UNC projects in 2025–2027: up to $4 million at UNC Asheville, up to $2 million at Western Carolina University, and up to $4 million for a UNC Board of Governors project.

Focused spending to pick new job sites

Starting July 1, 2026, the state can hire a national site firm when 15 or fewer Selectsites remain and money is available. Selectsite funds can buy only sites with a local option or offer to purchase and completed basic checks. Unspent Selectsite money can be used for these steps.

State funds motorsports industry study

The State appropriates $400,000 in 2026–2027 to update the 2004 motorsports industry study and assess North Carolina’s potential to attract events and facilities. The report is due to legislative leaders and Fiscal Research by April 15, 2027.

More funding to fight tax fraud

The Department of Revenue gets $5.4 million recurring in FY 2026–2027 to expand tax‑fraud analytics through the Government Data Analytics Center. The money pays for detection tools, software, reporting, case management, and tech support.

DMV rules for lost plates and engine swaps

If your plate is lost or unreadable, you must apply right away for a duplicate or new plate. The DMV can require sworn information and a replacement fee, and may assign a new number. If you install a different engine or change the vehicle body, you must notify the DMV on its form. The DMV updates the title and records, may require you to surrender the old title, and may charge a replacement fee.

New $20 fee to file hearing notice

In any civil case, you must pay $20 when you file a notice of hearing for listed motions. Only one $20 fee can be charged per motion. The $20 is recoverable later as court costs. This applies to cases pending or filed on or after the section’s effective date, and to some earlier judgments where costs were docketed.

Penalty for lying on job applications

An applicant who willfully gives false information on an employment application that is used for a criminal‑history check is guilty of a Class A1 misdemeanor.

Higher DWI license reinstatement fee

Beginning December 1, 2026, you must pay $200 to have a DWI‑related license revocation rescinded, unless a judge or magistrate orders rescission without the fee. The money is split: 25% to the General Fund, 25% to a statewide chemical alcohol testing program, and 50% to your county to reimburse jail costs.

Higher fees for medical licenses

Starting October 1, 2026, the Medical Board may charge up to $350 a year for general licenses and $150 for limited training licenses. Retired limited volunteer licenses pay $0. The Committee may set fee caps of $400 for applications and biennial renewals, $200 for provisional licenses, and $100 for late renewals. Physician assistants pay up to $200 a year and $25 if they register late.

Higher fees for NC medical licenses

License application fees can be up to $550. Limited education license applications can be up to $125. Anesthesiologist assistant initial and annual fees can be up to $200. Physician assistant initial fee can be up to $325. A duplicate license costs $25. Volunteer limited licenses stay free.

Licensing applicants must submit fingerprints

When you apply for a license or registration, you must give fingerprints and sign a consent form. The State checks your prints and sends a set to the FBI for a national check.

Stricter checks for licenses and taxi drivers

The State Bureau of Investigation now runs criminal background checks for many licenses and permits. You must give fingerprints, sign a consent form, and pay a fee. The SBI also sends prints to the FBI for a national check. For city taxi permits, fingerprinting is required when a national check is used. Cities may deny or revoke a taxi permit for listed reasons, like certain felonies, drug or alcohol crimes, habitual traffic offenses, prostitution violations, or noncitizenship.

Stricter license deadlines for physicians

If a physician fails to register, they owe an extra $50. If still unregistered 30 days after certified notice, the license becomes inactive. Reinstatement requires all fees and meeting licensing rules. This applies starting October 1, 2026.

User fees for rest-area EV charging

The State will charge users at rest‑area EV chargers. The charge covers electricity used, payment processing, and a share of operation and maintenance. If meters cannot track use, the State will set another fair method.

Firefighter pension $15 monthly payments

Starting January 1, 2027, members of the Firefighters’ and Rescue Squad Workers’ Pension Fund must pay $15 per month for up to 20 years. You must pay for each calendar year by March 31 of the next year. Payments go to your separate account and are held for withdrawal or retirement. Late payments after March 31 may not fully count for service unless applied under the law.

Higher fees for in‑home renewals

For in‑home license renewals in Forsyth County, the DMV or an approved vendor may charge up to double the normal Chapter 20 renewal fee. Your final price depends on the standard fee and the vendor’s charge.

In-home license renewal pilot ends 2030

The in‑home driver’s license renewal pilot ends on January 1, 2030. After that date, the law no longer allows renewals through this pilot unless lawmakers renew it.

Extra $125 per additional dealer

Salesmen who register with more than one dealer pay an extra $125 for each additional dealer. The fee applies at application, renewal, amendment, transfer, relicense, or other filing, whether filed directly or through a central depository. The funds go to the State’s General Fund.

Ed board members face interim job ban

State Board of Education members appointed by the Governor cannot start a temporary or interim job at a public school unit while serving. Members already in a temporary or interim role may keep it. Permanent jobs paid by State or local funds are allowed.

Limits on K–4 sex education

Beginning July 1, 2026, schools may not include instruction on gender identity, sexual activity, or sexuality in K–4 curriculum. Curriculum includes the course of study and related materials. Teachers can still answer student‑initiated questions.

No guaranteed fees for juvenile evaluators

For evaluators appointed on or after December 1, 2026, the law removes the guaranteed court‑ordered fee for juvenile forensic evaluations. Court‑appointed evaluators may earn less or face more uncertainty about payment.

Prisons limit some raises from savings

Starting July 1, 2026, the Department of Adult Correction cannot use savings from cutting vacant jobs to raise pay for staff at grade NC26 or higher or LG09 or higher. Higher‑graded staff cannot get raises funded from those savings.

Cost‑based fees for many DOT services

The Board of Transportation can set fees for listed DOT services, like express permit reviews, driveway connections, utility encroachments, and EV charging at rest areas. It must hold a public hearing and cannot charge more than the actual cost. If your express‑review permit is returned as insufficient, you may be charged an extra resubmission fee, up to 50% of the original application fee.

Different inspection timing for rental fleets

Very large rental‑car fleets must schedule safety inspections by the last day of the month when registration expires in the third year after the last electronic inspection authorization. The electronic authorization also expires at midnight that day.

New rules for large rental car fleets

A “large volume rental” vehicle is one in a North Carolina fleet of at least 10,000 cars rented to the public. This definition sets which rental vehicles must follow special inspection timing and fee rules. It mainly affects the biggest rental companies.

Quarterly reports for pilot vendors

Vendors in the in‑home renewal pilot must send a written report to DMV every three months. The report shows if they met performance benchmarks in the contract. This requirement lasts through the pilot and adds compliance costs.

Some shows lose film grant eligibility

Starting July 1, 2026, the Film and Entertainment Grant Fund cannot award grants to talk shows, recorded concerts or other live performance releases, awards shows, or gala events.

Two‑year pause on New Hanover shellfish leases

New shellfish and water‑column aquaculture leases in the defined New Hanover waters are on hold starting June 30, 2026. The pause covers new applications and some older pending ones. It ends July 1, 2028.

Limits on BLET at Samarcand

Beginning July 1, 2026, agencies not already holding Basic Law Enforcement Training (BLET) at Samarcand cannot hold BLET there. Firearms training that needs a firing range is still allowed. A request from a UNC or community college can also allow BLET at Samarcand.

Limits on seized funds, attorney focus

The Department of Adult Correction and the Department of Justice cannot use federally transferred seized assets for new jobs, new projects, buying property, major building repairs, or construction without the General Assembly’s prior approval. Attorneys hired with these General Fund dollars at DOJ must work only on capital cases.

Medical examiner report fee doubled

The fee for each medical examiner investigation report is $400, up from $200. If the deceased lived in the county where they died, that county pays. This applies to reports filed on or after July 1, 2026.

Military Affairs Commission startup

The Military Affairs Commission meets within 30 days. Members are unpaid but can be reimbursed for travel and subsistence. The Department of Military and Veterans Affairs pays these costs from its budget.

Monthly fees for law‑enforcement devices

Starting July 1, 2026, the monthly Division of Criminal Information fee is $33 per desktop device and $20 per mobile device.

Private prisons must repay escape costs

If someone escapes from a covered private facility, the company must immediately notify the county sheriff. The sheriff must enter the escape into the state criminal information system. The company must reimburse the State and counties for all costs to pursue and capture the escapee.

Reports from state‑funded nonprofits and centers

Listed entities, such as the NC Biotechnology Center, must send an annual report by September 1 on activities, goals, results, and itemized spending and fund sources. Each must also submit its audited financial statement within 30 days of issuance.

Safer disposal of incinerator ash

Beginning January 1, 2027, ash from burning solid waste must go to a properly designed disposal area that meets DEQ standards. DEQ will also work with facilities to find ways to recycle or reuse the ash.

State Bar grant rules and IOLTA pause

The State Bar must update its grant rules by November 1, 2026, and may use temporary rules until permanent ones take effect. Until permanent rules are in place, IOLTA proceeds may pay only administrative costs or be used as the statute allows, not new grants. These limits end when permanent rules begin. A prior session‑law section is repealed.

State fees rise with inflation schedule

Beginning July 1, 2026, the state adjusts listed fees every four years using the Consumer Price Index. Any increase cannot be more than the cost to provide the service, and per‑transaction fees are rounded to the nearest dollar. For the first update of non‑Title V facility fees, the change counts CPI only since these fees were added to the schedule. Agencies can set or raise fees already authorized in this law without prior consultation and may use emergency rules to do it.

State fleet charges rise with inflation

Every two years, the base monthly lease and per‑mile charges billed to state agencies for fleet vehicles go up by the automotive CPI for that vehicle type.

Rural internet fund ends 2026

The state sets $20 million a year for the Growing Rural Economies with Access to Technology Fund through the 2025–2026 fiscal year. After that year, this recurring funding ends. This change takes effect June 30, 2026.

Slower transcripts, fewer tools in utility cases

The Utilities Commission no longer uses daily transcripts to speed cases. In big rate cases, transcripts are furnished within 10 business days (was 3). For power plant certificate cases, transcripts are due in 10 business days (was 2). A utilities statute subsection is repealed, adjusting procedures.

MAT grants limited to appropriations

Starting July 1, 2026, Medication‑Assisted Treatment grants are limited to money the General Assembly provides. The program is not an entitlement and creates no property right.

Some temporary Medicaid changes end after 2027

After June 30, 2027, DHHS does not have to keep certain temporary Medicaid changes from this law and from Section 15 of S.L. 2023‑129 unless written into statute. Some temporary benefits or features can end after that date.

Coding and app grants ended

The Coding and Mobile App Development Grant Program is repealed. Groups can no longer apply for these grants under that law.

CPCC must match safety equipment buys

When Central Piedmont Community College uses designated 2026–2027 nonrecurring state funds to buy public safety equipment, it must add non‑State matching funds equal to 15% of the equipment’s total cash cost.

Cuts long vacant corrections positions

The Adult Correction Department must eliminate non-health positions empty for more than one year. In each division, removals cannot exceed half of that division’s vacant positions. This trims authorized staffing and aims to save money.

Future Teachers program ends

The law repeals the Future Teachers of North Carolina Program. The program’s legal authority ends.

TeachNC program ends July 2027

The TeachNC initiative is repealed effective July 1, 2027.

Tighter checks on school spending

Starting each October, DPI reviews monthly spending from certain State‑funded allotments. If a unit overspends its allotment, it must repay DPI under State Board rules. If it does not pay within 60 days, the State Board uses its oversight powers. DPI also aims to audit State‑funded positions monthly.

Limits on airport project land deals

If project funds are used to buy or improve airport‑related land, recipients cannot sell or encumber that land or improvements, except for utility and access easements and road rights‑of‑way. Leases need state Economic Investment Committee consent and must require business use. With consent, security interests are allowed but cannot include certain listed interests.

Sampson County may add schools tax

The law allows a new local sales and use tax for public education in Sampson County only. If adopted, taxable purchases in the county will cost more.

More recycling sites count as hazardous facilities

Facilities that receive off‑site hazardous waste for recycling are now treated as hazardous waste facilities under State law. Transfer facilities that meet federal 40 C.F.R. rules are still excluded. Newly covered sites may face permitting and oversight duties.

Easier car inspection and records

You can get your required vehicle inspection up to 90 days before your tag month ends. The electronic inspection OK also expires at midnight on the last day of your tag month. You no longer need to carry a paper registration card, but you must still report address changes on time. DMV marks fully autonomous cars in electronic records. Titles and DMV e‑records must show brands like salvage, flood, rebuilt, non‑U.S.A., or total loss, and the brand stays on all future titles.

Local worthless‑check programs allowed

Starting July 1, 2027, district attorneys can run worthless‑check collection programs where approved. Community mediation centers can take part and charge fees. If a check passer pays the program fee, restitution covers the check amount, bank charges, and allowed processing fees.

Board will set ferry pass price

On July 1, 2028, the $150 commuter ferry pass price is removed from law. The Board of Transportation, working with the Ferry Division, will set the pass price after that date. Your future pass cost can go up or down based on the Board’s decision.

Tolls coming to all ferry routes

The Board of Transportation sets tolls for all state ferry routes, with collection starting no later than January 1, 2027. The law does not set exact toll amounts. Toll money goes to a special fund to replace passenger vessels on a set schedule.

Child welfare funding tied to performance, caps

The State funds Intensive Family Preservation Services only for programs that submit required data, and funding is based on each program’s performance. Until standard rates are set, reimbursements to child caring institutions are capped at the DHHS controller’s rate for that facility, including county and IV‑E payments in the cap.

Veterans Life Center and county aid rules

The state caps FY 2026–2027 funds for the Veterans Life Center at $750,000 and also provides a $750,000 Challenge Grant. OSBM pays the Center each quarter dollar‑for‑dollar with non‑state money the Center raises that quarter; no match means no state disbursement. If the Center misses rules by June 30, funds can carry forward, but any money left after FY 2026–2027 reverts to the General Fund. The Department of Military and Veterans Affairs also contributes each year to counties that apply for veterans services, with full funding when money is sufficient and pro rata when it is not.

New building permit fee and rules

Starting January 1, 2027, a state fee is added to each building permit: $100 for Building Code permits, $25 for Residential Code permits, and $10 for other work. Some inspections may be done remotely by live video or submitted recordings under State Fire Marshal rules. Engineers must submit test results before a Certificate of Compliance is issued, and owners must keep emergency systems working with annual certification to the fire department.

$1M a year shifted to TeachReadyNC

Starting July 1, 2026, the recurring $1,000,000 for the Teacher Apprentice Grant Program is redirected each year to TeachReadyNC. This moves grant money from one program to another.

Blind and deaf early learning moves

On December 1, 2026, the Governor Morehead Preschool and the vision early learning program move from DPI to the Governor Morehead School for the Blind. On the same date, the hearing early learning program moves from DPI to the two deaf schools, following the law’s requirements. Families and staff now work with the residential schools that run these programs.

Fewer State Personnel Act rules for regional schools

Employees of the board of directors are exempt from most State Personnel Act rules. Articles 6 and 7 and paid parental leave (G.S. 126‑8.6) still apply.

NC Pre‑K sites: building and program rules

All NC Pre‑K classrooms must follow state program standards set by the Division. Private child care facilities and public schools running NC Pre‑K must also meet preschool building standards in law. This improves safety and quality, but providers may face higher compliance costs.

Parent voice, safety, and notices at school

Parents get a formal say through a Parent Advisory Council. The school must keep emergency epinephrine on site and adopt child safety and school mental‑health plans. If the school earns a D or F, parents get written notice and the grade is posted online. The board is encouraged to share any anti‑bullying policy each year and to help with patriotic youth group access without cutting into class time. Families must ensure students under 16 attend; helping a child skip school can be a Class 1 misdemeanor. The school is also told to try to offer 100% muscadine grape juice in nutrition or vending.

Regional school board and staff rules

A regional school board is set with members named by the Superintendent, State Board, and a parent council. Members serve four‑year terms, meet at least quarterly under open meetings, and can get per diem and travel. The school can accept donations. The school must follow state and federal special education laws. Boards may run periodic criminal‑history checks but cannot charge employees; they must report resignation reasons and relevant criminal history to the State Board. Board members and staff have civil immunity for acts under this law, except for gross negligence or intentional wrongdoing.

Regional school boards reset in 2027

Current regional school board members’ terms end June 30, 2027. New members start July 1, 2027 with staggered two‑ and four‑year terms; after that, terms are four years.

Regional school staff checks and rights

Employees of regional schools are now explicitly covered under the State’s listed protections. If the board requires a criminal‑history check or fingerprints, it cannot make school personnel pay for it. With consent, the State Bureau of Investigation can give the board criminal‑history results, including fingerprint‑based national checks, and the board must keep the information confidential. The State also repeals an older set of regional‑school rules, moving to this updated framework.

Teachers must finish AI training by 2028

All teachers in local school units, charter schools, and lab schools must complete the Friday Institute AI professional development by June 30, 2028. This requires time and compliance but aims to improve teaching with AI tools.

Travel pay and HR changes at Utilities Commission

Utilities Commission members who live 50+ miles from Raleigh get weekly mileage pay at the business rate and $180 per required overnight, up to 10 nights a month. Many State Human Resources Act rules no longer apply to Commission and Public Staff employees (with some protections still in place), changing pay, leave, promotion, and incentive‑pay rules.

Utilities Commission HR rules clarified

The Utilities Commission and its employees are covered by a specific exemption to the State Human Resources Act in G.S. 126‑5(c1)(43). This sets different HR rules for the Commission.

When raises start and who qualifies

Legislative salary increases are payable July 1, 2026. To qualify, you must be employed through June 30, 2026. People whose last workday was before June 30, 2026 due to resignation, dismissal, reduction in force, death, or retirement do not get the increase.

Boating and DMV fee updates

Starting October 1, 2026, boating certificate fees rise: one‑year costs $32 (<26 ft) or $70 (≥26 ft); three‑year costs $96 or $210; duplicates cost $6. You can buy a multiyear trailer plate for $105.75; it stays valid until you transfer the vehicle or surrender the plate. The law also sets clear vehicle property tax due dates tied to registration type for applications filed on or after October 1, 2026.

Stricter standards for adult diploma vendors

To run the adult diploma program, a vendor must meet clear quality rules. In the past five years, it must have run at least three statewide adult diploma programs in other states and kept at least a 50% graduation rate using a two‑year cohort metric. It must be regionally accredited and offer a catalog aligned to North Carolina’s diploma requirements.

Annual permits and faster UST reviews

Owners of petroleum underground storage tanks must get an operating permit each year for the site. The state issues a permit only after you have notified it about all tanks as federal rules require. You can choose express review for UST permits and certifications to speed approval.

Biotech budget split and loan focus

For FY 2026–2027, the NC Biotechnology Center must spend 21% on job creation, 65% on science and commercialization, and 14% on operations. The Center must favor loans over grants when it makes awards.

New licensing rules for engineers and surveyors

The Board caps the exam application fee at $100 and the firm certification fee at $100. Sponsors of continuing education must be licensed and may pay up to $250 per year. If your license is denied, the Board refunds any unused fees. The Board may allow renewals in hardship cases if you kept up your professional knowledge. The Board sets clear certificate formats, can support nonprofits that promote licensure and training, can manage real estate with approvals, and must set apprenticeship continuing‑education rules for surveying.

Stricter written rules for dental management deals

Dental practice management agreements must be in writing, signed, list all key terms, describe services and timing, and state total pay or the exact pay formula. These rules apply to agreements signed, changed, or renewed on or after the law’s effective date.

Workers’ comp study to model lower premiums

The annual actuarial study must show revenue scenarios for the Workers’ Compensation Fund. One scenario sets member premiums, by job class, at the lowest amounts needed to keep the fund’s cash at the optimal level.

Premium tax due in three payments

For the 2027 tax year, insurers must pay premium tax in three equal quarterly installments. Each payment must be at least 33 1/3% of the estimated annual premium tax. This changes cash‑flow timing, not total tax owed.

Audit work papers kept private

Audit work papers and drafts are not public. Internal auditors and the Executive Director can use them to check the final report. State or federal officials may inspect papers for official matters. Anyone else must get a Wake County court order after at least 10 days’ notice and a hearing.

Contracting changes for marine park and colleges

Marine Industrial Park Authority building contracts under $250,000 are exempt from certain rules, with quarterly reports required to lawmakers. The Authority can request help from the Department of Administration. The Community Colleges System Office must report each year by October 1 on capital projects with $2,000,000 or more in public funds, including estimated and actual costs and the contract awardee.

Courts clarify appeal review standards

Courts now review certain civil challenges anew (de novo). Challenges to local quasi‑judicial decisions follow the record‑review standard in State law for that type of case. This clarifies which standard applies based on the claim.

DHHS block grant plans and transparency

DHHS must submit a separate plan for each federal Block Grant it runs. Each plan must list program allocations and matches, admin costs, any new positions, two years of budget comparisons, current‑year spending, unspent federal funds, and maintenance‑of‑effort amounts. This improves oversight but adds reporting work for DHHS.

District Court 5 split into two

Effective July 1, 2026, District Court District 5 becomes Districts 5A and 5B. Grants awarded on or after that date follow the new districts.

Economic development board seats reshuffled

The Economic Development Partnership board now has 18 voting members with seats appointed by the Governor, Treasurer, Labor Commissioner, House, and Senate. Appointers must seek geographic diversity and pick some members from tier one and tier two areas. As certain Governor‑appointed seats expire, the first and fourth go to the Treasurer to appoint, and the others go to the Labor Commissioner. Current members finish their terms.

Emergency Management runs its own IT

The Division of Emergency Management manages its own IT systems without oversight from the Department of Public Safety or the Department of Information Technology. This pilot model gives DEM more speed and control. It also reduces central IT checks on DEM’s systems and spending.

Environmental rules and coastal protections

The moratorium on Cape Fear Basin transfers does not block transfers approved or started before July 1, 2026. It also does not block Cape Fear-to-Neuse petitions with a notice filed by July 1, 2026; those must be considered on what was submitted. DEQ can set express review fees and procedures outside APA rulemaking. For Coastal Reserve lands dedicated as preserves, DEQ and the Coastal Resources Commission are primary custodians; the state can seek mediation and sue to enforce the dedication. The EMC chair can hire temporary staff and use up to $150,000 a year for contracts. The law also repeals G.S. 130A-309.06(c)(8) and G.S. 143A-78.

Farmers reshape Agriculture Board

The Board of Agriculture now has the Commissioner plus 12 appointed members from specific farm sectors, and all must be practicing farmers. Members serve six‑year terms, and the Commissioner chairs meetings. New appointees replace current members in those sectors with staggered end dates in 2028, 2030, and 2032.

Faster cleanup of abandoned boats

Starting July 1, 2026, Boating Account funds let the Wildlife Resources Commission hire the Coastal Federation to remove and dispose of derelict vessels. The Commission must notify the last known owner and post a notice; if no action within 30 days, removal may proceed. During a declared emergency, the State may act immediately, with phone or email notice, and begin owner investigation within 15 days after removal. If still unclaimed after 30 days, vessels and gear are forfeited and may be disposed of at a permitted facility. The Coastal Federation must report by October 1, 2027 on vessel removals and other funding used.

Ferry ramp fix, toll setup, airport upgrade

The state redirects $1.5 million to repair the ramp at the South Dock Ferry Terminal on Ocracoke. Another $1.5 million supports capital, equipment, or access work next to Duplin County Airport. The Ferry Division can use its existing operations fund to install tolling technology system‑wide; this section does not set toll rates.

Fixes to DEQ base budget prep

When building DEQ’s 2027–2029 base budget, the State must remove negative appropriations and FTEs, budget one‑time grants as nonrecurring, and correctly place intergovernmental transfers. Special funds may not rely on cash balances that do not exist. These corrections cannot increase DEQ’s net General Fund appropriation.

Highway Patrol funds, cars, and updates

Seized federal assets in 2026–2027 go into the State Highway Patrol budget, with reports on receipt, planned use, and annual spending. Federal grants from Justice, Treasury, and HHS remain allowed. The Patrol must give VIPER radio progress reports every March 1 and September 1. The Patrol also takes ownership of certain fleet vehicles and uses past lease funds for fuel, maintenance, and insurance.

Historical Commission appointments updated

The Historical Commission now has 11 members appointed by the Governor, the General Assembly, and the Commissioner of Labor. Some members must teach college‑level history or manage archives, and others must have professional training in archives, history, preservation, archaeology, or museum administration. Members serve six‑year terms and can be removed for serious misconduct. Current members finish their terms, and new appointments are staggered in 2027, 2029, and 2031 with the required expertise.

Indigent defense funding and oversight changes

Starting July 1, 2025, no more than $15 million per year of IOLTA funds received on or after that date go to the PAC Fund. Up to $2 million per year from IOLTA funds received before July 1, 2025 may fund justice‑system grants if proposed by the Board and approved each year by the NC Supreme Court. For defender terms ending on or after November 30, 2026, the Commission must set evaluation metrics and give the appointing judge a confidential performance review at least three months before the term ends. The law also creates a new public defender office for Caswell and Rockingham counties (Defender District 22).

Juvenile justice and court access updates

Leftover juvenile community‑program funds can only support Level 2 alternatives, like statewide residential or community programs, regional collaboratives, or Juvenile Crime Prevention Council Level 2 options. These funds cannot pay for youth development center or detention facility costs. For cases started on or after December 1, 2026, courts may appoint certified juvenile evaluators employed by or contracted with an LME/MCO and paid with public funds. Attorneys in covered criminal and infraction cases cannot be blocked from getting needed DCI records, including a client’s driving record and criminal history.

Legislature must approve seized-asset spending

ALE, the SBI, and the State Highway Patrol cannot use seized federal assets for new jobs, new projects, buying land, major building repairs, or construction unless the General Assembly approves first. This adds legislative oversight. It also limits how these agencies spend seized‑asset funds on big items.

Legislature oversees Capitol repair plans

The General Assembly is the funded agency for project NCGA21‑4 and has final say over listed rehab and restoration work. Departments with parts of the Capitol must consult the Legislative Services Officer when preserving or altering those areas to protect the building’s historic integrity.

Limits on state fleet costs and charges

The Department of Administration cannot pay more than $30,000 for a car or $55,000 for a pickup, SUV, or van for the State fleet unless the General Assembly allows more. Every two years, these limits may rise by the automotive part of CPI. Starting July 1, 2026, the Department cannot change motor fleet charges to agencies without a new general law from the General Assembly.

Local Government Commission membership changes

The Local Government Commission’s makeup changes. The State Treasurer, State Auditor, and Secretary of Revenue serve as ex officio members, and six members are appointed by State leaders. The Treasurer serves as chair. Current members finish their terms. Three new seats must be filled within 30 days for four‑year terms.

Local grants retargeted, deadlines extended

Up to $6,667,959.25 of Rocky Mount’s prior $8.5 million must fund the Old Mill Road sewer pump station replacement, and the funds stay available until the project ends. The Human Trafficking Commission may use WORTH Court funds for any purpose within its authority. Hoyle Historic Homestead’s $85,000 can also cover other repairs or maintenance. Haywood County’s Lake Junaluska grant does not revert until June 30, 2027, retroactive to June 30, 2025. Coastal Carolina Community College’s prior grant now supports the Innovation and Event Center. Iredell County’s grant use returns to fairgrounds capital improvements or equipment.

Lottery board appointments and chair change

The Lottery Commission now has nine members. The Governor, General Assembly, State Auditor, and State Treasurer appoint members, and the Treasurer serves as chair. Appointees can be removed for cause. Initial Treasurer and Auditor appointees serve five years; all later terms are five years with a two‑term limit. Current members finish their terms, and expiring Governor seats shift to Treasurer and Auditor appointments as set in law.

More tracking for state buildings and land

Starting July 1, 2026, the state building database must show who occupies each building, or how many months it has been vacant. Reallocating State land worth $25,000 or more now requires consulting the Joint Legislative Commission on Governmental Operations and getting confirmation from OSBM that no new State money is needed. This rule does not apply to the Legislative Building or the Legislative Office Building and grounds.

New arts council makeup and rule

Starting June 30, 2026, the Arts Council has nine members: three picked by the Governor and six by the legislature, each for three years. The Department of Natural and Cultural Resources and its grant partners cannot award public funds based on the race, ethnicity, or culture of an organization’s leaders.

New DA Council runs operations

Beginning July 1, 2027, the new Council of District Attorneys takes over funds, five staff positions, and equipment from the courts’ office. The current Executive Director (as of July 1, 2026) stays on unless the Council elects someone else. Until new elections occur, the Conference’s Executive Committee acts as the Council to plan the transition. Any settlement that pays State money must be approved by the Council’s Executive Director or designee. The Council and Conference may use AOC office space only until July 1, 2027 unless they lease it and pay rent and renovation costs. By December 1, 2026, a transition plan and an IT rate‑setting method are due to legislative staff.

New public retirement board setup

Starting July 1, 2027, the Supplemental Retirement Board includes Governor, General Assembly, and State Treasurer appointees, with the Treasurer as chair. Some appointees must be finance‑experienced, one a State employee, and one a retired public employee. Trustees serve three‑year terms with limits, and vacancies have set fill‑in rules, including a six‑month trigger for the Treasurer to nominate. Governor and Treasurer appointees serve at the appointing official’s pleasure. On the effective date, any vacant seat is eliminated; holdover and unexpired‑term members may continue until their terms end.

New rules on legal and audit funds

Seized assets sent to the Department of Justice in FY 2026–27 are added to its budget, with reports due on receipt, planned uses, and an annual report by September 1. Funds for time‑limited attorneys that are unspent in FY 2026–27 stay available through June 30, 2029. The State Auditor can charge actual costs for certain audits to federal or State agencies (not the State Controller), with collections used to staff and run audits.

New SBI vendor, data, and fee rules

Businesses can apply to access online identifier data for prescreening by following SBI rules and paying $100 per year. The SBI may hire up to three vendors for school mapping, and school boards must choose a vendor. Vendors must run local training, complete walk‑throughs, and get local law‑enforcement certification to be paid. Starting January 1, 2027, anyone who asks or subpoenas SBI staff to testify as experts must reimburse the SBI for their actual time and expenses.

Old 2020 budget section repealed

The law repeals Section 17.4 of Session Law 2020‑78. Agencies and programs no longer follow that section.

Old budget rules and sections repealed

The law repeals G.S. 143C‑6‑13 and G.S. 143C‑4‑10(b)(3). It also removes Section 8.3(b) of S.L. 2011‑145 and Section 10.4(a) of S.L. 2013‑360. These repeals delete older authorities and requirements and align the budget code with current practice.

Old engineering statute section repealed

The law repeals G.S. 89C‑25.2. Rights or duties set by that section no longer apply.

Old public safety statutes repealed

The law repeals G.S. 143B‑1730 and Part 8 of Article 13 of Chapter 143B. It also repeals Section 19F.7 of S.L. 2023‑134. These sections no longer apply, and any roles based only on them end unless another law keeps them.

One court time-limit rule repealed

The law repeals G.S. 1‑54(10). This changes the rules for time limits on certain legal claims.

One state organization statute repealed

The law repeals G.S. 143A‑48 effective July 1, 2026. This deletes that statute from the code. No replacement funding or operational steps are provided here.

Parks repairs focus; battlefield funds

From July 1, 2026 to June 30, 2027, certain State Parks Trust Fund dollars can only pay for repairs and renovations, not new projects or land buys. The law also steers $5 million in interest to the American Battlefield Trust to preserve North Carolina battlefields listed as priorities in 1993, 2007, or 2010 NPS reports.

Pension boards restructured in 2027

The Superintendent of Public Instruction’s seat on the local government pension board is removed, and any vacant seat on that board is eliminated. On July 1, 2027 (or the effective date), the state pension board is reformed: the Superintendent’s seat is removed, the State Human Resources Director stops voting, and vacant seats are eliminated. Older parts of the TSERS law are repealed. The Committee on Actuarial Valuation ends, and its duties move to the State Health Plan.

Project funds kept longer, with reversion rules

IT project dollars do not expire at year‑end; they stay available until the project is finished or abandoned. Capital project dollars follow the existing reversion schedule in G.S. 143C‑8‑11. Money appropriated to the General Assembly does not revert unless the Legislative Services Commission orders it. The Governor’s budget must include a transfer to the State Capital and Infrastructure Fund. Year‑end settlement proceeds stay restricted in the Settlement Reserve Fund if the court or agreement restricts them, or move to the General Fund as nontax revenue if not restricted.

Public safety leadership and reporting changes

The Adjutant General must be confirmed by the General Assembly. The Governor must send a nominee by May 1, or legislative leaders must by May 15. An acting Adjutant General cannot serve more than 12 months without confirmation. The SBI Director in office on July 1, 2023 serves until June 30, 2027, then begins a six‑year term on July 1, 2027 unless a vacancy occurs. SBI and the State Highway Patrol must report each year by February 1 on jobs vacant 12 months or more. The State Highway Patrol Commander joins the Governor’s Crime Commission as a nonvoting member.

SBI runs sex offender registry

The SBI is now the custodian of the statewide sex‑offender registry and keeps records permanently in the Division of Criminal Information. Sheriffs must immediately forward registrations and updates to the SBI and keep originals; prisons must send prerelease notices 10–30 days before release. People who must register must report address and name changes within three business days (10 days when moving counties), school or job status changes within three business days, and new or changed online identifiers within 10 days. The SBI mails a nonforwardable verification form twice a year. If a court ends a person’s registration, the clerk must send the order so the SBI can remove the name; if denied, a new petition may be filed after one year. Juvenile records are kept permanently but remain confidential.

Shifts in prosecutor admin and records

On July 1, 2027, AOC no longer sets payment rules for experts hired by prosecutors, but still sets them for court‑hired experts. G.S. 7A‑347 and 7A‑348 are repealed that day. Starting July 1, 2027, AOC is not obligated to provide services, equipment, personnel, or support to the Council, the Conference, or DA offices beyond what state law lists. Disclosure rules now reference the Council of District Attorneys. Lapsed salary savings can cover more Judicial Branch legal services starting July 1, 2027.

State beach plan and matching funds

DEQ must keep a multiyear beach and inlet plan with a four‑year cycle of work, update it every two years, hold a public hearing, and send it to lawmakers. An interim report is due December 1, 2026, and a revised plan by July 1, 2027; after that, plans are due March 1 of odd‑numbered years. If federal shore‑protection money is available, the State must provide the matching funds required by law.

State public safety staff moves and contracts

By December 1, 2026, DPS employees and contractors at the Archdale Building must move to the Lottery building on Capital Boulevard. State Capitol Police can contract with agencies to create security positions funded by those contracts. Sheriffs, DA office employees, and SBI employees are immune from civil or criminal liability for actions taken while doing duties under this Article.

State research funds: no overhead, faster buys

State money used through the Collaboratory cannot be charged indirect overhead by partner institutions. For time‑sensitive projects the Collaboratory funds at least half, some procurement rules do not apply if it posts a written justification and reports it. These funds do not revert and are exempt from certain carryforward limits. Sensitive project records, like infrastructure vulnerabilities, are not public records.

Stops shifting safety jobs and funds

Starting July 1, 2026, the budget office may not move positions, people, or money from Public Safety, Adult Correction, SBI, or Highway Patrol to other agencies during a two‑year budget period unless the move is in the base budget or approved by law. Moving IT jobs to the Department of Information Technology is still allowed.

Stricter state control of DOT projects

The DOT may not hand billboard permit or enforcement power to cities or counties. Any change to the 1972 federal Highway Beautification agreement needs a joint resolution of the General Assembly. DOT cannot use extra Highway Trust Fund money for vegetation replanting under this section. DOT Board‑set fees follow updated administrative rules. Starting January 1, 2026, the Board must give 90 days’ notice before removing a statewide project and list DOT’s costs; if the action is unilateral and approved, costs must be repaid. A narrow timing rule lets a CRTPO local government avoid repayment if it reinstates its earlier I‑77 South resolution within 90 days of this law’s effective date.

Stronger guardrails on agency spending

The law tightens budget controls for State agencies. If spending for a budget code would go over its certified amount by more than 3%, the Director must first consult the Joint Legislative Commission. Agencies cannot push net General Fund spending above what is appropriated and must cut spending when receipts are revised down. Prior‑year emergency money (except for DOT) goes to the Savings Reserve, and prior‑year earned revenue may only be used to revert funds. Agencies must follow new grant‑handling rules and may not accept gifts that create future State costs.

Support for inmate roadside cleanup

DOT must first offer litter‑pickup contracts to Adult Correction on the best bid terms; DOC has 30 days to accept. Up to $500,000 in FY 2026–2027 reimburses sheriffs who use inmate labor under Section 19C.10. To get the higher reimbursement, sheriffs must meet monthly work‑hour minimums tied to housing nights three months earlier: 50 (≤100 nights), 150 (101–200), 250 (201–300), 350 (301–400), 450 (401–500), or 500 (>500). The Sheriffs’ Association must report monthly and yearly on work hours, miles cleaned, and housing nights. Starting October 1, 2026, sheriffs must coordinate with DOT and ensure guards, food, water, and bathroom access for inmate crews.

Tighter control and privacy for reviews

The Administrative Office of the Courts must support the Postconviction Review Commission, cannot change its budget without approval, and must audit it yearly. Records of criminal and Commission investigations are not public unless a court orders release. Commission and three‑judge decisions are final unless Article 92 allows review. Saying you are innocent to the Commission does not harm other postconviction rights.

Treasurer may bypass DOA purchasing

The State Treasurer can elect in writing to opt out of Administration Department oversight for buying, contracting, property maintenance, and office leases. Any real estate purchase still needs Council of State approval. The rule applies to actions taken on or after this law’s effective date.

Tribal sports bets only on tribal land

A sports bet counts as legal in this State only if it is started and received on tribal lands that are allowed to run Class III gaming. This clarifies where legal sports wagers can happen.

TSERS pension board membership revamped

The law sets who serves on the TSERS Board, term limits, vacancy and removal rules, meeting rules, and $100 per day pay for most non‑State‑paid members. The State Treasurer chairs. Appointees must meet conflict‑of‑interest and qualification rules.

Rules for dental management contracts

The Dental Board must adopt a rule that matches the law’s written‑content requirements for management agreements. These interim statutory directions end once the permanent rules take effect.

Single site for state spending info

The budget office must run one searchable website with statewide grants and contracts. All state agency homepages must add a link to that site and a search box to find contracts and grants on their own site.

Faster emergency shelters; limits on reallocations

After a declared emergency or disaster, the Division of Emergency Management can contract with vendors that provide emergency sheltering and storage. This speeds setup of shelters and storage in affected areas. The Governor may not use the funds in this Part to make certain budget adjustments or reallocations under specified statutes.

Stricter timelines for water projects, with relief

Projects funded under Section 12.2(e) must meet three deadlines: request funds and budget by June 30, 2027; sign a construction contract by June 30, 2029; and spend all funds by December 31, 2031. The Department can extend deadlines for good cause, including natural disasters. Unneeded or unspent funds revert after deadlines, and reallocated dollars go first to projects facing unavoidable labor, material, or engineering cost increases since September 1, 2023. The Department must report project status every quarter starting October 31, 2026, and the Authority must list loans offered but not accepted with reasons.

Behavioral health reporting and wage safeguards

LME/MCOs must report how they use locally purchased inpatient psychiatric beds and bed days. The state builds worker safeguards into the Innovations direct‑care rate increase: providers must attest funds go to worker wages or benefits, keep records, and repay money if they misuse funds. LME/MCOs report by December 1, 2026, and DHB reports by February 15, 2027.

Health Equity Office moved into Public Health

DHHS moves the Office of Health Equity into the Division of Public Health. All staff, funds, and property transfer. A separate office for these duties cannot be recreated without the General Assembly’s approval.

HIV premium help: early warning rule

If the HIV premium assistance under HMAP cannot stay cost‑neutral or save money within six months, the Department must report to lawmakers. The report must include proof and a plan for participants.

MAT jail grants spread across counties

A sheriff’s office can receive Medication‑Assisted Treatment (MAT) grants in only one category per year and cannot receive an award equal to a category’s full yearly allotment. These limits apply starting July 1, 2026 and are meant to spread funds across multiple offices.

Medicaid plans accredited; SNF pilot oversight

For capitated managed‑care contracts signed on or after the law’s effective date, plans must get and keep national accreditation (such as NCQA, Joint Commission, or URAC). For the skilled‑nursing facility pilot, if spending is projected to exceed the target, the state must notify oversight within 10 days, give status reports as directed, and deliver a final outcomes report by April 1, 2033.

Medicaid plans rebid to start Dec. 1, 2029

The first round of Medicaid standard plans and BH IDD tailored plans ends November 30, 2029. The state rebids so the next round starts December 1, 2029. This aligns contract timelines across both plan types.

Smart Start fund and oversight changes

The state creates a nonreverting, interest‑bearing Smart Start fund, and unspent local partnership funds do not revert. NCPC can hold up to $5 million in cash at year‑end and must file a financial report by August 1. NCPC and local partnerships may use up to 1% of State funds for fundraising and must report spending and results. NCPC must report on child mental and behavioral health initiatives by March 15, 2027 and November 15, 2028.

Agencies can cut vacant jobs

Agencies can pick which vacant positions to eliminate to meet required savings. They must report each eliminated job and the salary and benefit savings by December 1, 2026. Some positions and funds named in the law are exempt from these cuts.

Buy rules for child partnerships

NC Partnership for Children and local partnerships must follow set purchasing steps by dollar amount. Small buys follow board policy. Mid‑sized buys need three written quotes. Larger buys require an RFP, with major ads for the largest purchases.

Changes to student aid board and nursing loans

The State Treasurer now appoints two SEAA board members: one with finance expertise and one public member interested in higher education. This applies to seats expiring or vacancies after enactment and to the next vacancies. The law also repeals two earlier scholarship allocation sections. Starting in FY2027–2028, leftover year‑end money in the Forgivable Education Loans for Service Fund may be used to run the Nursing Fellows Pilot Program.

Collaboratory staff treated as legislative

Employees of the North Carolina Collaboratory and the UNC School of Government are now defined as legislative employees. This changes which employment rules and benefits apply to those staff.

Community college board and metrics changes

The State Board of Community Colleges grows to 20 members, adding the Labor Commissioner (or a designee) on July 1, 2027. The Board must report each year on outcomes at the Rowan‑Cabarrus Biotechnology Training Center. Colleges are judged on one required measure: progress of basic skills students. If funds are available, the Board may award performance money that colleges can carry forward.

Defines school health personnel, updates

“School health personnel” now means school psychologists, counselors, nurses, and social workers. The prior cross‑reference in G.S. 115C‑316.2 is repealed.

Education boards: council repealed, remote meetings

The law repeals the B‑3 Interagency Council statute. Boards of trustees may hold remote meetings without a declared emergency but must follow public‑meeting notice and access rules.

FSU shifts $2 million to parking

Fayetteville State University must move $2,000,000 from the College of Education Building project to the Parking Deck project. This redirects existing capital funds.

Khanmigo rules and 500 licenses

School units that use Khanmigo must sign one‑year contracts and submit an annual evaluation to DPI by July 15. Units must use a DPI‑approved secure single sign‑on and class rostering system. DPI also buys 500 Khanmigo licenses for Division of Juvenile Justice schools and gives technical support. Those schools must meet the same evaluation rules.

MagicSchool licenses and school rules

Schools can opt in and request MagicSchool licenses up to the number of students in grades 6–12 plus their teachers and administrators. DPI funds requests and prorates if money is short. Schools must use one‑year contracts, do yearly evaluations, and send them to DPI by July 15. Schools must use a DPI‑approved secure sign‑on and rostering tool. DPI also gets up to 500 licenses for juvenile justice schools and supports them. The Office of Learning Research studies results and reports by April 1, 2028.

NCCAT board and new revenue

The NCCAT Board now has set membership, term limits, and a chair elected every two years. The Board appoints the executive director. NCCAT may provide and sell professional development materials to private and out‑of‑state buyers, and must use proceeds to support its mission.

New reviews for Advanced Teaching Roles

The State Board must set a uniform review rule for Advanced Teaching Roles by January 1, 2027. DPI can use up to $300,000 a year from ATR funds to pay for the program evaluation.

Old K–12 laws are repealed

Several past K–12 provisions are repealed, including G.S. 115C‑12(25), G.S. 115C‑81.45(d)(4), and sections 7.32 of S.L. 2017‑57, 7.17 of S.L. 2018‑5, and 7.19 of S.L. 2023‑134. These deletions remove older requirements. The practical effect depends on what each section used to require.

Regional school reporting and funding paths

The regional school must adopt a technology cost policy, report yearly device break/fix rates, and update the state digital dashboard each year. It must also report computer science course data by September 15 each year. The school can ask a city for appropriations under existing law. Certain funds must follow State Treasurer deposit and payment rules.

Renewal school plans: reviews and options

The State Board will review renewal school system plans after the 2028–2029 school year and at least every five years. It may end a plan for poor performance, governance issues, or fiscal failures and must create a transition plan if it ends one. Local units with an approved renewal plan may use a different teacher evaluation model instead of the State’s NCEES.

School safety map funds capped, data private

Recurring funding for the school mapping program is capped at $500 per school each year. For 2026–2027, the Department may spend no more than $5,000 per school from the listed nonrecurring funds. All mapping data in the program are not public records and are not open for public inspection.

Schools move to one ERP system

DPI must plan by November 1, 2026 to move all school units to a single ERP under a statewide contract. Most units must switch by June 30, 2031, unless a delay is granted for an existing contract. DPI may use up to $300,000 in FY 2026–2027 for third‑party help. Any modernization funds not obligated by June 30, 2031 go back to the General Fund. DPI must file the plan and annual progress reports through 2031, and a final report by April 15, 2032.

Statewide school buying data platform

In FY 2026–2027, DPI must hire a contractor to run a statewide platform where school districts and counties share purchasing and facility planning data. All must participate and use it to post plans and RFPs and track vendor costs and reviews. The platform also shows bond details and supports document sharing.

Teacher turnover data and rule repeal

The State tracks teacher attrition and mobility. DPI must file a standard annual report by February 15 on attrition, mobility, reasons for leaving, and vacancies. The law also repeals G.S. 115C‑269.15(a), removing that subsection from educator‑preparation law.

TeachReadyNC admin funds and timeline

If funded, DPI may keep the larger of 15% or $300,000 a year to run TeachReadyNC and hire staff. DPI must request applications by November 1, 2026 for programs starting in 2027–2028. DPI’s first impact report is due March 15, 2028.

Two K–12 rules repealed July 2026

Two subsections of K–12 law, G.S. 115C‑81.5(b)(3) and G.S. 115C‑81.25(b)(3), are repealed on July 1, 2026. Schools and districts must follow the updated statutes after that date. The law does not add new funding or replacement rules in this section.

UNC‑CH dean and faculty hiring rules

At UNC‑Chapel Hill, the Chancellor must appoint the School of Civic Life and Leadership Dean with Board of Trustees consent. The Dean must approve all School faculty hires. Joint or courtesy appointments with other units are allowed only at the Dean’s discretion.

Universities and community colleges skip most APA

Starting July 1, 2025, UNC and the State Education Assistance Authority are exempt from most state Administrative Procedure Act articles (Article 4 still applies). Starting July 1, 2026, the State Board of Community Colleges is added to the same exemption.

Up to $100K kept to run school safety grants

In 2026–2027, the Center for Safer Schools may keep up to $100,000 of the program’s funds to cover administrative costs. This reduces the amount left for grants that year.

Rural health loan repayments to General Fund

Money paid back to the Rural Health Care Stabilization Fund goes to the State’s General Fund at each fiscal year‑end. The Fund closes when the last loan payment is received.

When these budget rules start

Most of this law takes effect July 1, 2026. Some sections take effect on their own dates. Prior 2025 budget provisions remain in place unless this law changes them. One section applies to reports, applications, and fees from the day it became law.

IT service rates set; Revenue keeps more

For FY 2026–2027, the Budget Office uses the IT Department’s submitted internal service rates to charge state agencies. The Department of Revenue can keep up to $500,000 a year to cover collection costs, up from $425,000. These are internal budget changes, not changes to your tax rate.

Study state health system changes

The state will hire a contractor to study selling or leasing State‑run health facilities and replacing LME/MCOs with private entities. It will also review an employer report idea on workers with Medicaid. The RFP is due by September 1, 2026, and the report is due March 31, 2027. The law provides $1 million one‑time for the study.

Electricity tax changes apply at billing

Electricity‑related tax changes take effect when the law takes effect. They apply to electricity billed on or after that date for electricity sold on or after that date.

Sponsors & Cosponsors

Cosponsors

Norman W. Sanderson
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 3,819 • No: 3,294

House vote • 7/2/2026

SB 257: 2026 Appropriations Act.

Yes: 88 • No: 21 • Other: 9

Senate vote • 7/2/2026

SB 257: 2026 Appropriations Act.

Yes: 35 • No: 10 • Other: 5

Senate vote • 7/1/2026

SB 257: 2026 Appropriations Act.

Yes: 36 • No: 13 • Other: 1

House vote • 7/1/2026

SB 257: 2026 Appropriations Act.

Yes: 92 • No: 23 • Other: 5

Senate vote • 6/3/2025