North Carolina still without a state budget as 2026 begins

Jan 20, 2026 | Advance Notice, Legislation, News, Politics

As 2026 gets underway, North Carolina lawmakers have returned to session without a finalized state budget. North Carolina is currently the last state in the country operating without one.

The ongoing delay has created uncertainty across multiple systems, including education, health care and higher education, with impacts already being felt by workers and families statewide.

What the budget delay means for North Carolinians

Without a state budget in place, funding decisions remain stalled, affecting essential services and public employees.

Educators remain in limbo regarding pay increases that were proposed in both the House and Senate versions of last year’s budget. With no final agreement, raises have not been implemented, prompting growing concern about retention as some educators consider leaving the profession due to financial instability.

Major health care projects are also at a standstill. Plans for a new children’s hospital have not moved forward despite an ongoing provider shortage in North Carolina and across the country. Delays in capital funding limit the state’s ability to expand access to care.

Institutions within the UNC System are operating under outdated funding levels that do not reflect current enrollment growth. The mismatch between student population increases and available funding has delayed staff raises and expansion projects needed to support students.

The lack of a state budget, combined with federal Medicaid cuts, has raised additional concerns about the stability of North Carolina’s health care coverage system. Together, these factors increase the risk of coverage gaps and reduced access to services.

Budget action unlikely before spring

While calls for a finalized budget persist, lawmakers are not expected to resume negotiations until April. That timeline leaves many North Carolinians facing continued uncertainty for at least another quarter.

Primary elections offer opportunity for voter engagement

In the meantime, North Carolinians have an opportunity to participate in the state’s upcoming primary elections.

Primary Election Day is March 3, with early voting beginning Feb. 12. Voters are encouraged to check their registration status, confirm polling locations and make a plan to vote.

Election information and voting resources are available at SafeVoterNC.org.

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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