Originally published in the September 26, 2025, NC General Assembly Update
Author: Jon Hardister of Elevation Strategies

The NC General Assembly convened for session this week, where they voted on several matters and worked to address budgetary issues.

While House and Senate leaders continue to be at an impasse on the state budget, they did pass HB 358 - Continuing Budget Operations Part II - which addresses several funding items, including disaster relief for Hurricane Helene, capital projects, and other miscellaneous funding measures. This bill enjoyed strong bipartisan support and is expected to be signed by Governor Josh Stein.

House and Senate leaders worked to address concerns related to Medicaid funding shortfalls, with the intention of allocating additional funds to cover services to prevent possible cuts. NC DHHS claims that they need upwards of $300 million, in addition to the $600 million that the NC General Assembly appropriated a couple of months ago, to prevent cuts from happening (estimated to be in the 3-10 percent range for providers).

Alas, there is still no deal on Medicaid, as negotiations seemed to stall after the House and Senate could not agree on funding for the NC Children's Hospital in Apex.

Legislators also passed HB 307 - Iryna's Law - which enhances criminal penalties and makes other changes to judicial standards in reaction to the death of Iryna Zarutska in the Charlotte light rail incident. This bill met significant resistance from Democrats, primarily due to provisions that could restart the death penalty in North Carolina. Governor Josh Stein has yet to signal if he plans to sign or veto this bill.

Another high-profile bill that passed this week is HB 926 - Regulatory Reform Act of 2025, which contains various regulatory reform measures. It is important to note that several of the provisions in this bill are relevant to the building industry.

Governor Josh Stein has yet to sign the bill into law. He could sign it, veto it, or allow it to become law without his signature after a period of time elapses. It passed with bipartisan support in both the House and Senate.

Click here for a PDF summary of the bill, which contains highlights of sections that are relevant for folks who work in the building industry.

Here is a general outline of these sections:

• Allows land surveyors to enter property while performing their professional duties without being liable for trespassing.
• Authorizes attorney's fees for property owner if a surveyor is negligent and causes actual damage to property.
• Prohibits inspections departments from charging inspections fees if the applicant cancels the inspection with more than one business day's notice.
• Prohibits local governments from adopting pavement design standards that are more stringent that NC DOT standards.
• Prohibits local governments from enacting waiting periods for the refiling of development applications.
• Exempts model homes from fire protection water supply requirements during construction.
• Allows buyer agent compensation to be included in the offer of purchase and directs the NC Real Estate Commission to implement the new rule.
• Limits the ability of local governments to restrict the display of American Flags and North Carolina Flags.
• Limits the ability of the Environmental Management Commission to request additional information from a stormwater and/or sewer permit applicant if the information was not previously required.
• Makes changes to the ability of the Environmental Management Commission's ability to require certain residential permits in regard to the Falls Lake rules.
• Expands vested rights for property and allows property owners to select the local jurisdiction in which most of the property is located (to help resolve multi-jurisdiction disputes).

What happens next?

The NC General Assembly has now adjourned, with plans to return for work the week of October 20th.