Gov. Josh Stein signs small spending bill amid NC budget impasse
AI-generated summary reviewed by our newsroom.
- Legislature passed a small spending bill and new congressional map; left without a budget.
- Gov. Stein signed the bill but criticized lawmakers for lack of new budget
- State will sell downtown parcel and the old Rex Hospital, to fund other projects
Good morning and welcome to the Under the Dome politics newsletter. I’m Dawn Vaughan, Capitol bureau chief.
The General Assembly came back to Raleigh for three days this past week, leaving without a new state budget and perhaps gone until 2026.
Instead, they sent Democratic Gov. Josh Stein a small spending bill and passed into law a new congressional map.
State law for redistricting means that a new map becomes law when it passes the legislature, not needing any stop at the governor’s desk.
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As for that small spending bill, Stein signed it into law on Thursday. It includes money for the General Assembly police and two provisions that would get rid of state-owned property.
The land includes a right of way at a key entry point into downtown Raleigh, which is a small parcel of land made up of a tree buffer, grass and sidewalk next to the Longleaf Hotel and Lounge. The state will sell the land.
It’ll also sell or lease the old Rex Hospital on Wade Avenue for redevelopment. The money the state makes off the deals will go into the State Capital Infrastructure Fund to pay for other projects, like the massive Education Campus under construction downtown.
Stein signed the bill, lauding law enforcement funding and other items, but also used his statement to criticize the lack of a big budget deal.
“It also proves that this legislature is able to come together and get results for the people of North Carolina when they want to. The bill, however, simply does not meet the standard of leadership that the moment demands,” Stein said, adding what’s not in the bill like Medicaid funding, raises and other spending.
“The time for waiting is over. It is past time for the General Assembly to send me a fiscally responsible budget that invests in our people,” he said.
Stein is going to be waiting for a while.
Lawmakers also left town without passing more Medicaid rebase funding that would keep services and payment rates steady — which led to a lot of finger pointing. The House has passed multiple standalone Medicaid funding bills, but the Senate has not taken them up, instead choosing to tie Medicaid funding to other provisions. The result of the dispute between the two Republican-led chambers has been no new Medicaid funding, likely until 2026.
- No deal on budget, raises or Medicaid as NC lawmakers leave town
- New spending bill passes NC legislature as budget battle continues among GOP
- NC lawmakers move to increase funding for legislative police department by $2.5M
Thanks for reading. Be sure to listen to our Under the Dome politics podcast. I host a new episode every Tuesday with my N&O colleagues and guests. Listen on all podcast platforms. Reach me at dvaughan@newsobserver.com.
This story was originally published October 26, 2025 at 5:00 AM with the headline "Gov. Josh Stein signs small spending bill amid NC budget impasse."
