September 26, 2025: A Legislative Update

NOTE: A special request from the national Big “I” - if your agency is structured as a pass-through and you are an owner, please take a moment to complete a short survey (click here to take the IIABA Tax Survey – it’s only 3 questions!) to help our lobbyists in Washington, DC, quantify what this deduction means for independent insurance agencies like yours. We appreciate you providing your input on this – thank you!

Also, if you are interested in healthcare and health insurance issues, make plans to attend the IIANC sponsored Institute of Public Leadership (IOPL) Hometown Forums on October 7, 14, 21 and 28 – they will be recorded and broadcast on the Spectrum News program, In Focus, and available on the Spectrum News website. Each forum starts at 6 pm, and is followed by a reception for panelists and audience members to mingle. Click HERE for information on topics, speakers, and locations.

This Week

The General Assembly convened in Raleigh this week as scheduled (the adjournment resolution passed previously by the state House and Senate calls for the state legislature to return to work once a month) with significant attention on whether the House and Senate could agree to funding to address a budgetary shortfall in the state’s Medicaid program.

 

Despite warnings from the NC Department of Health and Human Services that a reduction in payments to providers effective October 1 would result in a loss of medical care for some of the most vulnerable patients covered under Medicaid, the House and Senate concluded their business this week without reaching an agreement on funding for the program.

 

A primary sticking point in the negotiations is the Senate’s proposal to include with the Medicaid funding additional support for a proposed state children’s hospital to be built in Apex, while the House proposal dealt only with the needed Medicaid funding.

 

Legislators are scheduled to return again to Raleigh on October 21st, but it’s unclear whether the two chambers can work out their differences by then on either the Medicaid funding issue or on the tax and spending issues that have kept them from producing a comprehensive biennial budget for the fiscal year that started on July 1st.

 

Other legislative action this week included:

 

HB 307, named Iryna’s Law for the young Ukrainian woman murdered earlier this year on a Charlotte light rail train, that seeks to tighten up conditions of pretrial release and the handling of mentally ill persons who have committed violent crimes, with an amendment added in the Senate to restart the administration of the death penalty in North Carolina. The bill passed both the House and Senate, and is on Governor Stein’s desk awaiting his signature.

 

SB 13 that seeks to enhance the penalties for acts of violence on public officials. The bill passed the House and is now awaiting action by the Senate.

 

HB 358, a so-called ‘mini budget’ that included:

  • $65M for recovery from Storm Chantal which caused flooding in the Orange County area in July.
  • $35M for public infrastructure improvements at the Lenovo Center in Raleigh.
  • $65M for North Carolina Global TransPark Authority for additional facility and infrastructure projects.
  • $1.5M the Raleigh-Durham Airport Authority for facility enhancements needed to provide nonstop service to Dublin, Ireland.
  • Permission for UNC System schools to receive accreditation from the Commission for Public Higher Education, established in June by public university systems in NC, FL, GA, SC, TN and TX.

Also This Week

The Subcommittee on Hurricane Response and Recovery of the Joint Legislative Commission on Governmental Operations heard this week from officials from Governor Stein’s western NC Helene recovery program, GROW NC. Expressed was frustration with the slow process of securing approval from the Federal Emergency Management Agency (FEMA) for the draw-down of federal relief funding. You can access the materials from the hearing by clicking HERE.

On Thursday, DMV Commissioner (and IIANC member) Paul Tine spoke at 2025 IIANC InsurEXPO in Winston-Salem, outlining his plans for improving the operations of that agency, and expressing his understanding of the need to make insurance agent interactions with DMV possible through an electronic portal.

 

Insurance Commissioner Mike Causey was the featured speaker at the InsurEXPO reception for iPAC, InsurPAC and Action Fund contributors on Thursday evening.

 

He joined IIANC Chief Advocacy Officer Joe Stewart in presenting former IIANC Board chair and current Big “I” National Board Director Michelle O’Connor, owner of O’Connor Insurance in Charlotte, a Plott Hound Award, recognizing her outstanding support of the advocacy work conducted by the IIANC Governmental Affairs program.

 

Also speaking at the reception was Catawba College political science professor Michael Bitzer, who offered his insights on North Carolina’s political landscape and key factors to watch in the 2026 elections.

 

And finally, Insurance Commissioner Mike Causey was the featured guest on a recent Do Politics Better podcast.

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Independent Insurance Agents of North Carolina, 101 Weston Oaks Court, Cary, NC 27513, United States, 919-828-4371

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