SB 177 expands North Carolina's Medicaid Healthcare Access and Stabilization Program (HASP) to include qualifying freestanding psychiatric hospitals, allowing them to receive increased reimbursements for services. The bill creates a new assessment (a fee) on these hospitals, calculated as a percentage of their hospital costs, to fund the program. To implement this, the state must seek federal approval from CMS to include psychiatric hospitals in HASP. This change directly affects all Medicare-certified, state-licensed freestanding psychiatric hospitals in North Carolina, requiring them to pay the new assessment while gaining eligibility for enhanced Medicaid payments.
SB 474, the DAVE Act, creates a new Division of Accountability, Value, and Efficiency within North Carolina's State Auditor's office. It requires all state agencies to report by October 2025 on how they spend public funds and list vacant positions held for six months or longer, including reasons for vacancies. The Division will assess whether agencies or specific positions remain necessary, using AI tools to analyze spending effectiveness, duplication, and budget use. By December 2025, the Division must recommend to the legislature which agencies or positions should be eliminated based on this review.
SB 257, the 2025 Appropriations Act, allocates funding for North Carolina's state agencies, departments, and institutions for the 2025-2027 fiscal biennium. It provides budget authority from the General Fund, Highway Fund, and Highway Trust Fund to cover current operations, maintenance, and specific programs like those managed by the Department of Transportation. The bill also includes federal block grant funding for health and human services (DHHS) and other designated programs. This funding measure directly affects all state entities receiving these appropriations and becomes effective July 1, 2025.
This bill restricts the City of Rocky Mount from using money earned by its electric utility to fund general city expenses beyond specific operational needs. It mandates that revenue from electric rates must primarily cover the costs of running the power system, paying off related debts, and keeping rates low for customers. The only exception allows the city to transfer a limited amount of surplus funds to other municipal accounts, capped at the greater of 3% of the system's assets or 5% of its annual revenue. Effective July 1, 2026, these rules apply exclusively to Rocky Mount, preventing the transfer of electric utility profits to the city's general fund for unrelated purposes.
This bill requires counties in North Carolina that completed a property reappraisal effective January 1, 2026, to temporarily pause using those new values for tax calculations. Instead, these counties must use the property values from their previous reappraisal for the 2026-2027 fiscal year and continue using the 2026 reappraisal values for all future years until a new general reappraisal is conducted. The legislation also clarifies the timeline for scheduling the next reappraisal and allows taxpayers to appeal property listings related to the 2026 reappraisal during the 2027 calendar year. Additionally, the bill updates qualifications and requirements for county assessors, mandating a $20 examination fee for certain candidates and requiring all assessors to complete 30 hours of continuing education every 24 months.
HB 87 (Educational Choice for Children Act) allows North Carolina to participate in a federal tax credit program that encourages donations to private scholarship organizations. The bill requires the State Education Assistance Authority to maintain and publish an annual list of qualifying scholarship groups operating in North Carolina, enabling donors to claim federal tax credits for contributions. These scholarships can cover elementary and secondary school costs, including homeschooling expenses, as permitted under federal law. The law becomes effective after 2026, with the Authority needing to establish necessary rules by July 2026 to comply with federal requirements.
SB 1080 proposes a constitutional amendment to cap North Carolina's state income tax rate at a maximum of 3.5%. If approved by voters in the November 2026 election, this change would prevent the legislature from raising the income tax rate higher than that threshold in the future. The bill applies to taxable years beginning on or after January 1, 2027, and requires a majority vote in favor to become law.
SB 449 modifies North Carolina's disaster recovery funding programs related to Hurricane Helene. It extends interest-only payment periods for Golden LEAF loans to 24 months, caps individual loans at $150,000, and defers repayment for small cities and counties until June 30, 2030, or after FEMA reimbursement decisions. Eligible communities include cities with under 10,000 residents and over 100% budget damage, or counties with under 25,000 residents and over 50% budget damage from Helene. The bill also requires local government grant projects to be ineligible for FEMA Public Assistance reimbursement to qualify for funding.
The bill title "Defund Planned Parenthood and Cost Transparency" does not match the actual content of HB 192, which is focused on education funding. This bill raises teacher salaries for the 2025-2026 school year using a new salary schedule (e.g., $5,000 for 0 years experience, $6,823 for 25+ years) and reinstates education-based supplements for advanced degrees ($126-$253 monthly). It appropriates $1.597 billion for salary increases and $8 million for supplements, while directing the North Carolina Collaboratory to study a student-based funding system by February 2026. The bill directly affects public school teachers, instructional support staff, and school psychologists. The title appears to be incorrect based on the provided bill text.
HB 125 establishes budget operations for North Carolina's 2025-2027 fiscal biennium, primarily allocating $142 million in one-time funds for agricultural disaster relief related to 2024 crop losses. It requires recipients to first seek insurance or federal aid before using state funds, and to return state funds if alternative sources are secured. The bill directly affects farmers, institutions of higher education, and other entities receiving disaster aid, mandating transparency through reporting to the State Auditor. Crucially, it prohibits the Governor from using these disaster funds for general budget adjustments or reallocations.
