North Carolina Finally Passes State Budget

After months of negotiations and delays, North Carolina lawmakers have approved a new state budget, ending a prolonged legislative process that left funding for several key priorities uncertain for over a year. The long overdue $34 billion budget was signed by Governor Josh Stein on July 7, 2026.

The spending plan includes investments in public education, infrastructure, healthcare, public safety, and economic development while addressing the state's continued growth and long-term fiscal priorities. State leaders say the budget represents a compromise that balances fiscal responsibility with strategic investments across North Carolina.

However, the final budget also includes several significant structural changes that are drawing attention from advocates and community leaders.

Among them, the budget eliminates the Office of Health Equity within the North Carolina Department of Health and Human Services. Rather than operating as a standalone office, its responsibilities will be absorbed into the department's Division of Public Health.

The budget also abolishes the Office for Historically Underutilized Businesses (HUB) within the North Carolina Department of Administration, eliminating 12 positions. For more than 25 years, the office has worked to expand opportunities for minority-owned businesses to compete for state and local government contracts by providing outreach, certification assistance, and business development resources.

In addition, lawmakers approved the closure of a mentoring program for minority male students housed within the North Carolina Community College System Office. The program was designed to improve student success, retention, and graduation rates by connecting participants with academic and professional support.

Supporters of the budget say the measure provides certainty for state agencies, local governments, schools, and organizations that depend on state funding to plan for the coming fiscal years. Critics, however, argue that eliminating programs focused on health equity, minority business development, and student mentorship could have lasting impacts on underserved communities.

With the budget now approved, attention turns to how these investments and the elimination of several longstanding programs will affect communities across North Carolina.