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NC Lawmakers Take Final Vote on Budget with Overdue Raises, Sending It to Gov. Josh Stein

The plan gives state employees raises, trims income taxes and adds higher levies on sports wagering and data centers, lawmakers said.

  • On Thursday, the North Carolina General Assembly passed a $34 billion state budget, officially sending the measure to Governor Josh Stein for his signature or veto.
  • Legislators finalized the plan after a prolonged stalemate that left the state operating on a 2023 budget for more than 1,000 days, frustrating advocates and lawmakers alike.
  • New provisions include across-the-board 3% raises for state employees and shift income tax reduction schedules, while increasing sports wagering operator taxes to 23%.
  • Representative Sarah Crawford, D-Wake, criticized the secretive process, and advocates argue the 3% raise effectively amounts to a one-and-a-half percent increase over two years.
  • The budget replenishes the rainy day fund to about $4.2 billion and appropriates $706 million for new funding, including continued disaster recovery efforts.
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Carolina Journal broke the news on Wednesday, July 1, 2026.
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