Hall says passing state budget is House’s top priority as short session nears

RALEIGH, N.C. — North Carolina House Speaker Destin Hall said passing a new state budget is the House’s top priority as lawmakers prepare to return to Raleigh for the 2026 short session at the North Carolina Legislature, with raises for state employees, Medicaid funding and several tax policy items still unresolved. WRAL published Hall’s interview with state government reporter Caroline Yaffa on March 27.

Hall said the issue is urgent because North Carolina teachers, law enforcement officers and other state employees are still waiting on pay raises after the state went without a full budget in 2025. In the WRAL interview, Hall called it “our No. 1 priority in the House” and later said, “We have to get a budget done.”

The budget debate is expected to dominate the short session at the Legislature, which begins April 21. Carolina Public Press, in a report republished by WFAE, said North Carolina finished 2025 without a full budget, leaving teacher raises, state employee pay and other unfinished issues to spill into this year’s session.

Hall also told the WRAL Reporter that one of the main disagreements between the House and Senate involves how quickly North Carolina should continue cutting income taxes. He said House leaders still support the tax cuts, but at what he described as the same pace Republicans have followed for many years, rather than a faster approach that could create budget pressure if state growth does not keep up. Hall also said the House wants meaningful raises that reflect inflation and help the state remain competitive in recruiting and retaining workers.

With high pressure on both sides of the aisle, lawmakers saw newly elected North Carolina Gov. Josh Steins push for immediate action. On March 9, Gov. Stein proposed a $1.4 billion Critical Needs Budget that includes $319 million for Medicaid and additional funding for law enforcement, North Carolina teachers, nurses and other public servants. Stein’s office said North Carolina had gone nearly two and a half years without passing a new state budget.

Hall also said Medicaid funding will likely be a major issue in the short session. In the WRAL interview, Gov. Stein said lawmakers know more money will be needed in the short term, but he also made the argument that the state must examine Medicaid cost overruns and possible inefficiencies more closely.

With lawmakers set to return later this month after their scheduled break, the coming short session now appears likely to test whether House and Senate leaders can finally break a budget stalemate that has left pay raises for teachers, nurses, law enforcement state workers and other major state priorities in limbo.

North Carolina House Speaker Destin Hall speaks in Raleigh. Photo by Eric Stevenson.