House Republicans have unveiled their budget. Here’s what lawmakers are saying.
Good morning and welcome to Under the Dome. I’m Caitlyn Yaede.
Up first, a dispatch from Avi Bajpai on how the House GOP’s budget plan was received on its first full day in committee.
As House Republicans move their budget proposal through the chamber this week, Speaker Destin Hall and his top budget writers are stressing that the House is rolling out its spending plan a little differently than Republicans have done in the past.
Instead of releasing budget documents at once, typically on the Monday evening of the week the budget is voted on, Hall decided to begin the process a little sooner, with budget committees for all of the different policy areas like health, education, justice and public safety, agriculture, and others, reviewing their respective sections last Thursday.
When Hall and top Republican appropriators held their budget press conference on Tuesday morning, they said they were proud of the plan they came up with, and wanted to allow for some more time for their plan to be reviewed and debated.
“This is not a hide-the-ball deal,” Hall said. “We’re proud of this budget. It is pro-growth, it’s pro-family, pro-worker, and we’re glad to have it aired out through the body to the General Assembly.”
SOME PRAISE BUT CONCERNS PERSIST FOR DEMOCRATS
Democrats made their objections to the House GOP’s plan clear, but also acknowledged some improvements in both policy and process in the first budget Hall has shepherded as speaker, compared to previous years.
Rep. Abe Jones, a Raleigh Democrat, wanted to hear what the Republicans were proposing and had to say. He stopped by the press conference room on Tuesday morning and took a seat next to Gaston County Republican Rep. John Torbett to listen to the GOP’s plan.
Jones told The News & Observer afterward that he found the press conference to be informative. He said he was keeping an open mind, and hadn’t decided yet how he was going to vote when the budget is taken up later this week.
The main area of concern for Jones and other Democrats were the proposed cuts, many of them to vacant positions, across state government.
House Minority Leader Robert Reives acknowledged in a statement that the House GOP’s budget plan “gets us closer” to Democratic Gov. Josh Stein’s budget proposal, when it comes to teacher pay and “addressing our state’s fiscal cliff.”
“Unfortunately, there are cuts to public safety, public services, and negative impacts on clean air and water efforts. Additionally, taxpayer funded private school vouchers continue to divert funds from public schools to send wealthy children to private schools,” Reives said.
The Democratic leader said his caucus will offer amendments on many of those issues including education, health care, public safety and the environment.
Republicans approved four amendments offered by Democrats during the afternoon meeting of the House Appropriations Committee. Several additional amendments are expected to be taken up when the budget reaches the House floor for its first vote today.
INNOCENCE COMMISSION SPARED IN HOUSE BUDGET
Rep. Marcia Morey, a Durham Democrat, meanwhile, praised House Republicans for backing the preservation of the N.C. Innocence Inquiry Commission, which the Senate GOP proposed eliminating in its budget last month.
Morey told The N&O that she believes the commission’s executive director, Laura Pierro, had effectively advocated for the agency and educated lawmakers on its importance after Senate Republicans said it should be cut.
“I was really happy that it was not eliminated,” Morey said, referring to the commission staying in place in the House GOP’s proposal. “It serves a very vital function, it’s very important, and so, let’s hope it stays in the budget.”
At the same time, Morey said the House’s budget as a whole still falls short: “A lot of this budget is, we will admit, kind of pretty to look at, but there are cracks in the foundation.”
Morey and other Democrats, holding their own press conference later in the day, slammed the House GOP’s proposal to help finance state employee raises by cutting jobs that have been vacant for months.
“We are eliminating vacant positions to pay current employees more, which is admirable, but not by the way they are doing it,” Morey said. “In practice, it only means that we will have increased staffing shortages, which are going to be permanent.”
Morey also said that a separate proposed cut of nearly 500 vacant positions in the state’s prison system, which would include 400 correctional officer positions that have been unfilled for more than a year, would mean an increased workload for workers.
— Avi Bajpai
CHANGES TO COME TO NC STATE HEALTH PLAN
In an effort to remedy a projected $507 million deficit, the North Carolina State Health Plan Board of Trustees voted on changes Tuesday that would impact beneficiaries in 2026.
The board approved increased out-of-pocket costs for some, including a doubling of the annual deductible for those with what will now be called the “Standard” plan. These measures are expected to impact hundreds of thousands of public employees, non-Medicare retirees and Medicare-eligible retirees across the state.
More could be to come — the board plans to meet again in August to vote on proposed premium increases.
Luciana Perez Uribe Guinassi and Kyle Ingram have the details on what changes to expect for the 2026 plan year.
GUILTY PLEAS SHARED, FOUR MONTHS AFTER CASE CLOSED IN CAMPAIGN FINANCE CASE
On Jan. 23, Mitchell Flinchum and Thomas Smith pleaded guilty to accepting cash contributions in excess of $50 in Wake County District Court — campaign-finance charges for which they paid a $100 fine and court fees.
Flinchum of Burlington and Smith of Raleigh are top leaders in the Sons of Confederate Veterans’ political action committee, Dan Kane reports, and these pleas come five years after a campaign finance watchdog filed complaints to the North Carolina State Board of Elections.
But it wasn’t until May — nearly four months after the case came to a close — that Bob Hall, the now-retired executive director for Democracy NC, was made aware of the guilty pleas.
In a news release, Hall called the settlement “pitiful” and criticized Wake’s District Attorney Lorrin Freeman for taking “so long to accomplish so little.”
Hall filed the complaint after The Daily Tar Heel — UNC’s student newspaper — reported evidence that the PAC had received illegal donations.
“As far as I’m concerned it’s settled,” Mitchell said. “I’m glad after all of it to hopefully have it in the past.”
WHAT ELSE WE’RE WORKING ON
As state lawmakers work on the upcoming budget, they are considering $180 million for NC State University’s Poe Hall — which has been closed for the last 18 months due to the presence of toxic polychlorinated biphenyls. Korie Dean reports on this proposal and what other budget items are on the table for North Carolina colleges and universities in the latest issue of Dean’s List.
Former Vice President Mike Pence joined North Carolina business leaders in Raleigh earlier this week, where he denounced the Trump administration’s tariffs. Pence said consumers would ultimately pay the price for higher tariffs, in an event hosted by the conservative John Locke Foundation. Kyle Ingram has the story.
As the General Assembly makes progress on a state budget, city leaders across the Triangle are also unveiling first looks at their fiscal plans for 2026. Here’s the details:
In his first presentation as Durham’s city manager, Bo Ferguson revealed his $771 million budget proposal — an 8% increase from the city’s current budget. His plans include raises for city employees and 42 new staff positions, including 17 for community safety. Kristen Johnson has the details, including plans to keep GoDurham free through the end of 2026.
The City of Raleigh also plans raises for city employees in 2026 — either 9% or 11% for full-time employees and 5% for part-time employees, Anna Roman reports. The $1.78 billion budget plan includes $11.7 million for Dorothea Dix Park and 10 new positions in city government.
Today’s newsletter was by Caitlyn Yaede and Avi Bajpai. Check your inbox tomorrow for more #ncpol.
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This story was originally published May 21, 2025 at 5:00 AM with the headline "House Republicans have unveiled their budget. Here’s what lawmakers are saying.."
