Originally published in Elevation Strategies' October 25, 2025, newsletter by Sebastian King and Jon Hardister.

The NC General Assembly convened for session this week, where they focused almost exclusively on drawing new maps for the state's congressional districts. While the maps for the congressional districts are typically only redrawn every 10 years after the U.S. Census is completed, there has been a move across the country -- among both blue and red states -- to redraw districts for political advantage heading into the 2026 election cycle.

North Carolina has 14 congressional districts. Republicans currently hold 10 of those districts and Democrats currently hold 4. Under the newly drawn map, Republicans have a good chance of gaining another seat, giving Republicans an 11-3 advantage.

The district that was primarily targeted is Congressional District NC-3, which is currently held by Democrat Don Davis. Under the new map, there is a good chance that Republicans will flip this seat. This is all part of a national struggle between both political parties as they prepare to fight for control of the U.S. House in 2026.

Another issue that has been discussed at length lately is Medicaid. Governor Josh Stein has claimed that NC DHHS will need to make cuts to Medicaid rates to avoid shortfalls (ranging from 3-10 percent), while NC House and Senate leaders claim that the cuts are not necessary at the present time.

Still, NC House and Senate leaders agree that more funding is needed to maintain Medicaid services. They voted back in June to allocate an additional $600 million for Medicaid, although it appears more funding is needed, either now or over the next few months, to maintain current levels.

This week, the NC House passed HB 491 - An Act to Fund the Medicaid Rebase - which would allocate $190 million from the state's Medicaid Contingency Fund to help cover services for the 2025-26 fiscal year. However, the Senate did not act on the bill due to objections over the process, asserting that the rules of the session limited what was eligible to be considered.

NC House and Senate leaders have previously agreed that more funds are needed to maintain Medicaid services, but there are major disagreements over whether or not to fund a new NC Children's Hospital in Apex, which has created an impasse on Medicaid-related funding.

Speaking of impasse, legislative leaders continue to be at an impasse on a new state budget, which is now about four months overdue (the current fiscal year began on July 1st). It now is clear that no new state budget will be passed until spring of 2026 at the earliest, which could put many funding priorities in limbo until that time.

There may be action on a few "mini budgets," as there have been over the last couple of months, but compensation for teachers and state employees, infrastructure funds, numerous capital projects, and other spending items will be held up until a full agreement is reached on a state budget. On the upside, there is no state government shutdown like we are seeing on the federal level, as the previous year's budget simply rolls over in a continual fashion.

NC House Speaker Destin Hall has suggested that the NC House is likely done taking up any votes in 2025, which means Medicaid funding, veto override votes, and numerous other items will likely not be dealt with until next year. It is possible that this could change, but it would be no surprise if we don't see the legislature return to action until 2026.

Another major topic in the NC General Assembly involves Rep. Cecil Brockman, a Democrat from Guilford County. Authorities announced earlier this month that he is being charged with child sex crimes and is being held in jail on a $1.05 million bond. Legislative leaders from both political parties - Democrat and Republican, along with Governor Josh Stein, have called on Brockman to resign, but thus far, he has not.

Earlier this week NC House Speaker Destin Hall announced that a bipartisan committee will be formed to investigate Brockman and whether or not he should be expelled from office. This is the first step in a possible expulsion proceeding if Brockman does not resign. The last time a member was expelled from the NC House is when Rep. Thomas Wright was removed in 2008.

As we head into the Holiday Season, the major topics in North Carolina politics will shift towards the primary election season for the 2026 election cycle. Filing begins in December, and the primary election will be on Tuesday, March 3rd.

Perhaps the highest-profile race at the state level is that of Senate Pro Tem Phil Berger, who faces a primary challenge from fellow Republican Rockingham County Sheriff Sam Page. TV ads, direct mailers, digital ads, and so forth are already being ran in that race, which is on track to become an expensive contest.

There will be many other races to watch heading into 2026, with the U.S. Senate contest between likely nominees Democrat Roy Cooper and Republican Michael Watley expected to be one of the highest-profile races in the country, as both parties wrestle for control of the U.S. Senate. The race between Cooper and Watley is expected to cost up to $1 billion.

Local elections across North Carolina will be held on Tuesday, November 4th. If you live in a local government jurisdiction that has city/town council elections, be sure to cast your vote. Turnout is usually low in municipal elections, so your vote will certainly have an impact.