North Carolina allocates $800M for schools and infrastructure amid US education funding standoff

North Carolina lawmakers have approved a stopgap spending measure that allocates $800 million for schools and infrastructure projects, amid an ongoing budget impasse in the state. The temporary funding plan is part of a broader $2.3 billion allocation aimed at sustaining critical government operations, including education and health services.

The General Assembly, controlled by the Republican Party, passed the mini-budget as negotiations over a full two-year, $66 billion state budget remain unresolved. The full budget was originally due by July 1. North Carolina is one of the few US states that has not yet enacted a full budget for the current fiscal year.

Spending package targets education, health, and infrastructure
The stopgap plan directs funding toward K–12 schools, community colleges, and infrastructure, while also addressing health care and staffing needs across several state departments. The measure includes money to accommodate enrollment changes in educational institutions and experience-based pay raises already mandated by state law for teachers and certain state employees.

According to the Associated Press, the spending package also includes $600 million to cover growing Medicaid expenses and nearly $200 million for state employee retirement and health care costs. It provides resources to hire more driver’s license examiners and to expand Division of Motor Vehicles (DMV) facilities to reduce wait times.

Additionally, the plan instructs three state departments to cut millions of dollars by eliminating vacant positions, contributing to cost containment amid budget uncertainty.

Legislative leaders emphasize urgency of stopgap measure
House Speaker Destin Hall stated the stopgap bill would help continue essential services and "get us to the next step in our negotiations," as reported by the Associated Press. Senate leader Phil Berger indicated that further mini-budgets could follow in the coming months if a comprehensive agreement remains out of reach.

Republican Rep. Donny Lambeth, a key House negotiator, explained that the goal is to produce a carefully considered budget. "We have the option of moving fast for the sake of being agreeable... or we work intensely to stand on the basic needs within our state," Lambeth said, as quoted by the Associated Press.

Governor Stein calls for full budget approval
Democratic Governor Josh Stein has not yet signed the current mini-budget, and his office is reviewing the legislation. As override votes proceeded in the General Assembly, Stein called for lawmakers to prioritize passing a complete budget that includes provisions aligned with his policy goals.

"That is the wrong priority," Stein said during a press conference, referring to other legislative efforts, including easing gun laws and reversing emissions mandates. "We need to focus on what matters and not these sideshows, which are distractions," he added, as reported by the Associated Press.

Though Republicans are one House seat short of a veto-proof majority, they have succeeded in overriding eight of Stein’s 14 vetoes this year, according to the Associated Press.

TOI Education is on WhatsApp now. Follow us here.