N.C. budget watch: What’s at stake for OUR communities

May 22, 2025 | Advance Notice, Economy, News

This legislative session has been nonstop, and Advance Carolina has been in the mix. From attending the 19th Annual NC Black Summit hosted by our sister organization, North Carolina Black Alliance, where over 400 elected officials and community leaders from across the state gathered to discuss solutions that work for us, to organizing a powerful NC Black and Brown Policy Network Advocacy Day, and participating in Divine 9 Legislative Day, where Black Greek-letter organizations engaged directly with lawmakers—we’ve been closer to the people and closer to the process.

But today, we need to pause and talk about something just as important: the latest Senate and House budget proposals.

HUB Office on the Chopping Block

Both the Senate and House budgets propose eliminating the HUB Office, which stands for Historically Underutilized Businesses. This office is essential for creating equitable access to state contracts for small, minority, and women-owned businesses.

Why the HUB Office Matters:

  • For every $1 invested in the HUB program, North Carolina sees $4.70 in economic impact
  • The program has generated over $200 million in new tax revenue
  • These businesses support job creation, economic growth, and community resilience, particularly in underserved areas

Eliminating the HUB Office would hinder equity, shrink the state’s contractor pool, threaten infrastructure development, and risk encouraging companies to divest from North Carolina. This move would be a devastating blow to small business ecosystems statewide.

A $10 million cut to Diversity, equity and Inclusion

The House budget also calls for a $10 million cut to Diversity, Equity, and Inclusion (DEI) programs, continuing a pattern of legislative attacks seen in HB 171, SB 227, and SB 558.

These programs are designed to ensure fair access and representation for marginalized communities. Cutting DEI funding is not just a policy shift—it’s a rollback of civil rights protections and decades of progress.

What’s missing from both budgets?

While the House proposal edges out the Senate’s version in a few areas—such as teacher pay and by rejecting the Senate’s most harmful tax policies—neither proposal goes far enough.

Key priorities still underfunded or overlooked:

  • Affordable housing
  • Accessible healthcare
  • Fully funded public education
  • Clean energy investments
  • Properly funded elections

The current proposals fall short of addressing the real needs of North Carolina’s communities, particularly Black and Brown residents who continue to bear the brunt of underinvestment and exclusion.

What’s Next?

This is just the start of the conversation. The state budget is vast, and Advance Carolina is committed to breaking it down in meaningful ways for the people most affected, OUR communities.

Stay tuned for part two of our budget breakdown, where we’ll be joined by special guests to further explore what these proposals mean for Black and Brown North Carolinians.

 

Resources

Jovita Lee, Ed.D. is the policy director for Advance Carolina and convener of the North Carolina Black and Brown Policy Network. Her advocacy and policy work focuses on equity for Black and Brown communities, operating on both state and national levels.

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