North CarolinaSB 4492025-2026 SessionSenateWALLET

Continuing Budget Operations Part IV.

Sponsored By: Kevin Corbin (Republican), Michael V. Lee (Republican), Brad Overcash (Republican)

Signed by Governor

ACCOUNTINGAGRICULTURAL WASTEAGRICULTUREAGRICULTURE DEPT

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Bill Overview

Analyzed Economic Effects

32 provisions identified: 23 benefits, 1 costs, 8 mixed.

Bigger Golden LEAF loans for businesses

The Golden LEAF bridge loan cap rises to $150,000 per business. Loans also can run longer but cannot mature past June 30, 2032. These changes apply to current and past program loans.

$25 million yearly for pay reserve

Beginning in 2025–26, the state adds $25 million each year to the Pay Plan Reserve. This money supports state employee pay plans and future budgeting.

Insurance trade rules start Jan. 2027

Consumer trade‑practice rules in the named insurance law take effect January 1, 2027. They apply to insurance contracts issued, renewed, or changed on or after that date. This makes those protections enforceable for those policies.

One-year cut to employer health costs

For fiscal year 2025–26 only, qualifying local governments and some charter schools get a 2.4% reduction in the salary base used to calculate their State Health Plan employer contribution. The waiver ends June 30, 2026, and the waived amount is not repaid.

More support for cooperative high schools

Starting in 2025–26, cooperative innovative high schools get recurring funds by tier: Tier 1 $275,000; Tier 2 $200,000; Tier 3 $180,000. The Northeast Regional School of Biotechnology and Agriscience gets $310,000. Virtual cooperative high schools get $200,000. Funds go to local school units that run these approved schools.

Fewer protections in some MEWA plans

Health plans offered by licensed multiple employer welfare arrangements (MEWAs) are now exempt from certain required plan rules in state law. The change applies to MEWA plans offered on or after the law’s effective date. Enrollees in these plans may face less coverage or higher out‑of‑pocket costs.

Higher NC Promise tuition for nonresidents

Beginning in 2026–27, nonresident undergraduate tuition at Elizabeth City State, UNC Pembroke, Fayetteville State, and Western Carolina is $3,500 per semester. Nonresident students enrolled in 2025–26 who stay continuously enrolled keep a $2,500 per semester rate. New nonresident students pay $1,000 more each term.

Delayed loans and targeted Helene grants

Eligible cities and counties can delay cashflow loan repayment until the latest of June 30, 2030, final FEMA denial, or when FEMA pays. Existing loans must be renegotiated on request to match these timing rules. If a county borrows for an unincorporated area, it must spend the loan only there. State capital grants are based on FEMA damage per person and can only fund projects FEMA will not reimburse. This grant rule applies to grants on or after June 27, 2025.

Extra time on building approvals after Helene

Starting December 11, 2024, the clock stops on development approvals and vested rights that are valid at any time from January 1, 2024 through December 31, 2027 in Helene‑affected areas. Approvals valid on September 25, 2024 get a 12‑month automatic extension. Local governments may revoke or change an extended approval if site conditions changed after Helene. If an approval is suspended or extended, local governments can reassign that project’s reserved water or sewer capacity to other ready projects. They must use fair plans and require the holder to show ability or intent to start within 120 days.

Retarget pandemic funds, keep budget neutral

Budget officials can reclassify unspent State Fiscal Recovery Fund dollars counted as revenue loss. They may move only amounts obligated by December 31, 2024 to other eligible government services that also have 2025–26 General Fund support. The Director must make offsetting moves so the 2025–26 General Fund total does not change. A report is due by April 15, 2026.

Easier tree work on private property

In Helene-affected areas, local governments cannot enforce most tree rules for trees more than 10 feet from your property line. They also cannot require permits for that work. They may enforce narrow rules only to protect life or property from hazards like mudslides, slope failure, or flooding. This restriction lasts until October 1, 2026.

Farm waste permits extended to 2028

General permits for swine, cattle, and wet poultry operations, including digester permits, stay valid through September 30, 2028. Current certificates of coverage also stay in force. Farmers do not need new permits until that date.

Longer interest-only Bridge loans for businesses

Golden LEAF Bridge Loans now allow interest-only payments for up to 24 months from the loan award date. This reduces near-term principal payments for small businesses. The change applies retroactively to existing program loans.

More help for small meat processors

Beginning in 2025–26, the state provides $581,788 each year to bolster the State Meat Inspection cost‑share program. Small processors and producers in the program can use this funding to lower inspection costs.

Bird flu response adds staff and labs

The Veterinary Division gets $1.5 million each year starting in 2025–26 for up to 10 staff and operating costs to monitor and respond to avian flu. It also receives $1.5 million one time in 2025–26 for lab expenses.

Environmental board gets staff and authority

The Environmental Management Commission chair can hire the staff needed to carry out the Commission’s work. The Department of Environmental Quality gets $700,000 each year starting in 2025–26 for up to five dedicated EMC staff.

Granite Falls fire grant deadline extended

The Town of Granite Falls keeps its directed grant for a fire station until June 30, 2027. The money will not revert before that date.

Legislature operations and member security support

The General Assembly gets $2.5 million each year starting in 2025–26 for operations and its Special Police (staffing, training, equipment, and protection). Special Police can provide executive protection in response to any “threats,” not just a threat of physical violence.

More prosecutors and federal assignments

Courts receive $600,000 each year starting in 2025–26 to fund more special assistant U.S. attorneys. District attorney offices can assign up to 12 assistant district attorneys to serve as special assistant U.S. attorneys, up from 6.

State Fairgrounds repairs use fair receipts

The Agriculture Department may use up to $7.5 million of State Fair receipts for repairs and renovations at the State Fairgrounds. This authority begins July 1, 2025.

State Fire Marshal admin staff funded

Starting in 2025–26, $300,000 each year funds three administrative positions for the State Fire Marshal. The money covers salaries and benefits.

$12 million to rebuild Helene broadband

The state gives MCNC a $12 million grant to rebuild and reinforce damaged fiber in Helene-affected areas. Projects must finish and close out by December 31, 2026. Only federal Coronavirus Capital Projects Fund money can be used, and all federal rules apply.

Highway Patrol radios and staffing flexibility

The state provides $2.1 million each year starting in 2025–26 to operate the VIPER public safety radio network. The Highway Patrol Commander can exempt up to 17 employees (up from 10) under the cited personnel rules.

Local funds shifted to priority projects

Asheboro can use any unspent, unencumbered Acme‑McCrary mill grant money for the Trade Street Infrastructure Project (effective July 1, 2025). In Henderson County, wastewater funds move first to repair and upgrade the Etowah system; leftover money may go to the original Edneyville uses.

One-time ferry repair money and reports

The Ferry Division gets $4 million one time in 2025–26 for dry-dock work and $3 million one time for vessel maintenance. By January 1, 2026, and then quarterly, it must report vessels scheduled, estimated costs, actual costs, and total funds used until the money is spent.

Public safety and courts tech upgrades

The State Bureau of Investigation gets $2 million one time in 2025–26 for radios and other needed gear. The court system gets $7.2 million one time in 2025–26 for tech improvements.

Upgrades to state budget and HR systems

The state funds replacement and stabilization of the IBIS budgeting system with $20.85 million in 2025–26 and $850,000 in 2026–27. It also funds the Human Capital Management system with $1.18 million in 2025–26 and $2.691 million in 2026–27. Time‑limited HCM positions must end by June 30, 2027 unless lawmakers extend them.

Megasite program may spend interest

The nonprofit running the Megasite Readiness Program can use up to $2,000,000 of earned interest for admin costs. This authority starts when the law takes effect and ends June 30, 2027.

Private vendors for SBI fingerprints

The SBI can use approved private vendors for fingerprinting and criminal record checks. Vendors may charge fees for each service. Privacy and handling rules still apply to vendors. This change starts on enactment and applies to checks requested on or after that date.

Plans to move and sell Raleigh sites

Administration must choose a new site for the Division of Employment Security by April 1, 2026 and move by April 1, 2027. It must seek redevelopment offers for the Old Rex property, which is exempt from most Article 7 sale rules, and pick the best financial proposal by April 1, 2027. The 304 N. Dawson Street property must be sold at fair market value, with an appraisal due to oversight by January 1, 2026. A plan to relocate the State Records Center is due within 18 months and no later than June 1, 2026. After costs and any title conditions, sale proceeds go to the State Capital and Infrastructure Fund; no State Land Fund service charge is allowed.

Wildlife Commission property program repealed

The WRC Registered Property Program is repealed when this law takes effect. Prosecutions for offenses that happened before the repeal are not affected.

Treasury tech costs and procurement changes

The Treasury can charge the funds and programs that use State banking services for system upgrades, up to $3 million each year starting 2025–26 and $4.3 million one time in 2025–26. The Retirement Systems can use up to $1,022,000 each year and an extra $1,260,000 in 2025–26 from plan assets to migrate ORBIT data. The State Treasurer’s department and the Investment Authority are exempt from some IT procurement rules but can opt in by written election.

Sponsors & Cosponsors

Cosponsors

Dana Jones
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 274 • No: 86

Senate vote • 10/21/2025

SB 449: Continuing Budget Operations Part IV.

Yes: 46 • No: 0 • Other: 4

House vote • 10/21/2025