Originally published by Elevation Strategies

The NC General Assembly will return to action on April 21st for the 2026 short session. When lawmakers get back to work -- after the dust settles on the primary election -- they will resume working towards a deal on the state budget. As we have reported before, there was no new state budget enacted last year, due to a standoff between the NC House and Senate, making NC the only state in the nation that is operating off of a budget from the 2023-24 cycle.

The standoff was due in large part to disagreements over tax rates, raises for teachers and state employees, and funding for a new NC Children's Hospital in Wake County -- whereby the Senate wanted to secure upwards of $600 million to fund the project, which the House did not support.

However, recent reports indicate that the Senate may be moving away from the $600 million request, and may instead advocate for $103.4 million in financing towards the project. This could result in a resolution of the impasse on the funding for this project, which could result in more productive budget negotiations.

Other major issues that will likely be considered during the legislative session this year include regulatory reform, education policies, economic development, infrastructure funding, and Medicaid funding.

As we reported before, another major development in the NC General Assembly is a new NC House committee that was established to examine local property taxes. Late last year, Speaker Destin Hall announced the creation of the House Select Committee on Property Tax Reduction and Reform, which has been meeting to discuss the impacts of property taxes, especially in light of revaluations taking place across NC.

We don't yet know what actions this committee will recommend, but we will watch this closely in the weeks ahead. Chances are the committee will make a recommendation for legislative policy related to local property taxes heading into the short session this year.