After more than a year without a comprehensive state budget, North Carolina lawmakers have just approved a sweeping $34 billion spending plan that will impact nearly every resident—from teacher paychecks and driver’s license offices to taxes, Medicaid, sports betting, and Hurricane Helene recovery.
The House approved the budget 88-21, while the Senate passed it 35-10 with bipartisan support, and yesterday, Gov. Josh Stein officially signed it into law.
North Carolina has a budget! pic.twitter.com/pX67lkM6Oi
— Governor Josh Stein (@NC_Governor) July 7, 2026
Here are the biggest changes:
Teacher Pay Gets One of the Largest Raises in Decades
Teachers will receive an average 8% salary increase, with the biggest raises going to newer educators. Beginning teacher pay will increase to $48,000, making North Carolina’s starting teacher salary one of the highest in the Southeast. Veteran teachers will receive smaller percentage increases, a point that drew criticism from some education leaders.
Teachers will also receive one-time bonuses:
- $500 for teachers with fewer than 16 years of experience
- $1,000 for teachers with 16 or more years of experience
State Employees Finally Receive Raises
Most state employees will receive:
- 3% permanent salary increase
- $1,750 bonus for employees earning under $65,000
- $1,000 bonus for employees earning $65,000 or more
The raises are not retroactive, meaning they do not compensate employees for the year they went without raises while lawmakers negotiated the budget.
Law Enforcement Gets Much Larger Raises
Several public safety agencies will receive substantially larger pay increases to improve recruitment and retention:
- State Highway Patrol officers: Average 17.7% raise
- SBI agents: Average 20.3% raise
- Alcohol Law Enforcement officers: Average 20% raise
- Correctional officers: Average 15.4% raise
Driver’s License Offices Get More Staff
The budget funds additional driver license examiner positions, allowing the DMV to expand weekday and Saturday hours at some of North Carolina’s busiest licensing offices in an effort to reduce long wait times.
Medicaid Receives More Than $1 Billion
Lawmakers included more than $1 billion to fully fund North Carolina’s Medicaid program, which provides healthcare coverage to more than three million residents.
Hurricane Helene Recovery
The budget appropriates more than $700 million for Hurricane Helene recovery efforts, including matching FEMA reimbursements, repairing infrastructure, and helping local governments recover from storm damage.
Sports Betting Taxes Increase
North Carolina will raise the tax on licensed sports betting operators from 18% to 23%.
However, prediction market platforms such as Kalshi and Polymarket will pay a 6% tax on net revenue and will not be required to pay the $1 million licensing fee imposed on sportsbooks. Some Democratic lawmakers criticized the differing tax treatment during debate.
Data Centers Lose a Major Tax Break
The budget repeals a sales tax exemption on electricity used by data centers, a move lawmakers said will increase state revenue as North Carolina experiences rapid growth in AI and cloud computing infrastructure.
Other Major Highlights
Additional provisions include:
- Funding for transportation and infrastructure improvements.
- Continued investments in public schools and community colleges.
- Additional funding for public safety agencies.
- Efforts to stabilize the Department of Adult Corrections through operational funding.
- Continued tax relief while maintaining the state’s balanced budget.
What It Means for the Charlotte Region
The budget will affect thousands of Charlotte-area residents. CMS teachers, UNC Charlotte employees, state workers, Highway Patrol troopers, SBI agents, correctional officers, and Medicaid recipients all stand to see direct impacts. Mecklenburg County residents may also benefit from expanded DMV staffing, additional infrastructure funding, and continued investments in public safety and healthcare.
If Gov. Stein signs the legislation—or allows it to become law without his signature—the new budget will become North Carolina’s first comprehensive spending plan since 2023, ending one of the longest budget stalemates in recent state history.
