Stein Signs $34.4 Billion Budget Despite Criticizing Key Provisions

Gov. Josh Stein on Tuesday signed North Carolina's $34.4 billion state budget into law, ending more than two years without a comprehensive spending plan and approving another $700 million for Hurricane Helene recovery, including funding for rebuilding efforts across Western North Carolina.

The decision came after months of negotiations between Stein and the Republican-controlled General Assembly. Although the governor publicly criticized several provisions of the final legislation, he concluded the budget's funding for education, public safety, Medicaid and disaster recovery outweighed his objections.

Standing alongside teachers, law enforcement officers and state employees during the signing ceremony, Stein argued the budget demonstrated that divided government can still produce results.

"North Carolinians expect their elected officials to come together across our differences to deliver for people," Stein said. He cited the largest starting teacher pay raise in nearly 50 years, historic salary increases for public safety officers, full Medicaid funding and continued Hurricane Helene recovery investments as the primary reasons for signing the bill.

For Western North Carolina, the budget appropriates another $700 million for disaster recovery. The funding includes $450 million to meet the state's federal disaster match, along with money for local government infrastructure, temporary housing assistance, private road and bridge repairs, housing reconstruction, flood warning systems, landslide mapping and long-term recovery organizations.

Stein also pointed to investments in community colleges, the Division of Motor Vehicles, child care, cybersecurity, clean drinking water and a new state veterans home. He highlighted the repeal of the state's sales tax exemption on electricity purchased by data centers, calling it a step toward ending taxpayer subsidies for the industry's energy costs.

But moments after praising the budget's investments, Stein outlined the provisions he said should not have been included.

He criticized lawmakers for eliminating more than 1,000 state government positions and condemned policy language affecting executive authority and local governments.

"This budget has real flaws," Stein said. "The legislature slashed more than 1,000 state government positions, making it harder for us to keep people safe and healthy. It also includes a number of unconstitutional and wrong-headed provisions."

Even so, Stein signed the legislation rather than vetoing it or allowing it to become law without his signature.

His decision marks a notable departure from recent budget battles in Raleigh. North Carolina had operated without a newly enacted comprehensive budget since 2023 as lawmakers relied on continuing appropriations and targeted spending bills while negotiations continued.

The budget passed with bipartisan support, clearing the Senate 35-10 and the House 88-21 before reaching the governor's desk.

The new spending plan funds teacher, state employee and law enforcement pay raises, fully funds Medicaid for the fiscal year, continues scheduled income tax reductions and authorizes billions in state spending. For communities across Western North Carolina, it also represents the latest round of state funding aimed at closing recovery gaps that remain nearly two years after Hurricane Helene.

Alongside Senate Bill 257, Stein also signed House Bill 56, which makes technical corrections to the state's budget law.

You may watch the bill signing here.