It’s looking less likely now that a budget will be ready by the end of June.

Senate President Pro Tem Phil Berger told reporters this week that while progress is being made in his discussions with House Speaker Destin Hall, he is less certain they’ll have the tax and spending plan ready to roll out by the end of the month.

Two big-ticket items – funding for a children’s hospital and state funding to support construction of a stadium should NC get a professional baseball team (both of which Sen. Berger supports, but Speaker Hall is skeptical of) – are seen as key sticking points in the negotiations.

Veto Overrides

This week the state House voted to override Governor Stein’s veto of four bills when two Democrats who lost their re-elections bid in the March primary, Rep Carla Cunningham (U – Mecklenburg) and Rep Shelly Willingham (D – Edgecombe), were not present for the vote.

Overriding a gubernatorial veto necessitates a YES vote of three-fifths of the members present, so the two absences meant a total of 118 of the 120 House members were in the Chamber thus making the override goal 71 votes in favor which is exactly the number of House seats currently held by Republicans.

The veto override of all four bills, HB 171 Equality in State Agencies/Prohibition on Diversity, Equity, and Inclusion (DEI); SB 227 Eliminating “Diversity, Equity, and Inclusion (DEI)” in Public Education, SB 558 Eliminating “Diversity, Equity, and Inclusion (DEI)” in Public Higher Education, SB 153 North Carolina Border Protection Act, was approved on a 71-47 party-line vote.

Other Legislation of Interest

Governor Stein signed into law HB 315 to ban third-party litigation financing in North Carolina, making us the first state in the US to do so.

As previously reported, the Big “I” had asked the state associations to make getting a ban in place a top priority, and IIANC worked with a coalition of business trade organizations led by the NC Chamber in the effort to get legislation passed here in NC.

HB 356 that contains the items on 2026 IIANC’s Legislative Agenda passed the Senate and now heads to the House; as previously reported was the plan, IIANC and the carrier organizations succeeded in having removed the provision added to the bill in committee regarding arbitration of UM/UIM claim disputes.

HB 1094 that makes various changes to transportation related issues, including creating a statutory definition of e-bikes and allowing vehicle owners 30 days (up from the current 10) to respond to DMV when they receive a liability coverage lapse notice, passed the Senate and now heads to the House.

SB 1047 that makes various changes to an array of business regulatory provisions (a full report on those changes can be found HERE), passed the Senate and how heads to the House.

SB 595 that makes various changes to state tax laws – including a new ‘round up’ to the nearest nickel for certain taxes given the elimination of the penny, and requirement that sports betting services report to the Department of Revenue any online gaming winnings of $2,000 or more – was approved by both the House and Senate, and now heads to the governor for his signature; a full report on those changes can be found HERE).

New House Member Sworn In

Dan Kiger, the replacement for Rep. Sarah Stevens (R – Surry), who resigned her House seat to dedicate full time to her campaign for the NC Supreme Court seat currently held by Democrat Anita Earls, was sworn in Wednesday.

And Finally...

Last week, IIANC Chief Advocacy Officer Joe Stewart spoke to students attending the RMI Summer Summit hosted by the Brantley Center at App State.

And this week, Monday included an IIANC Action Fund Thinkers Lunch featuring CEO of the Economic Development Partnership for NC, Chris Chung; Tuesday featured a breakfast hosted by Wildlife Crossings coalition partners to thank legislators for including money in the state budget to build bridges over and culverts under NC highways; and, Wednesday there was a NC Institute of Public Leadership hosted legislative reception that included a panel of political science professors who run polling programs for their college talking about voter attitudes in the 2026 elections.

Also on Wednesday, IIANC Governmental Affairs Committee member David Smith took part in a panel discussion on healthcare issues hosted by Business NC magazine that will soon be made available for public viewing on their website.