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North Carolina’s $34.4 billion budget passes House and Senate, heads to Governor next.
Here is what you need to know about the new budget and how the funds will be allocated:
Click HERE for full bill
| Total State Budget | $32.6 billion |
| FY 2026-27 Budget | $34.4 billion |
| K-12 Education | Approximately $13.9 billion for public schools, including teacher pay, enrollment growth, school safety, literacy programs, and Opportunity Scholarships. |
| University of North Carolina System | Approximately $4.3 billion for operations, enrollment growth, research, and capital improvements. |
| North Carolina Community Colleges | Approximately $1.8 billion for workforce training, enrollment, and campus operations. |
| Health & Human Services | Approximately $7.7 billion (General Fund) supporting Medicaid administration, behavioral health, child welfare, public health, veterans, and aging services (excluding federal Medicaid dollars). |
| Public Safety & Corrections | Approximately $3.3 billion for prisons, law enforcement, emergency management, juvenile justice, and court operations. |
| Transportation | Highway Fund and Highway Trust Fund expenditures total approximately $7.0 billion across the biennium for roads, bridges, and infrastructure (separate from the General Fund budget). |
| Hurricane Helene Recovery | $700 million in additional recovery funding plus $1.1 billion added to the Rainy Day Fund for future disaster response and fiscal stability. |
| State Employee Compensation | Hundreds of millions of dollars supporting a 1.25% across-the-board raise, $3,000 bonuses over two years, and larger targeted raises for correctional officers and law enforcement. |
| Economic Development | More than $150 million for business recruitment, rural development grants, site readiness, tourism, and workforce initiatives. |
| Broadband Expansion | Approximately $95 million to expand high-speed internet access in underserved communities. |
| Water & Infrastructure Grants | More than $300 million for drinking water, wastewater, and local infrastructure projects. |
| Environmental & Natural Resources | More than $200 million for state parks, conservation, agriculture, water quality, and natural resource management. |
Largest Spending Areas
- Education (K-12, UNC, Community Colleges): ~$20 billion
- Health & Human Services: ~$7.7 billion
- Public Safety: ~$3.3 billion
- Transportation (outside General Fund): ~$7 billion
- Hurricane Helene Recovery: $700 million in direct appropriations plus $1.1 billion in reserves.
These figures provide a clearer picture of where the state’s largest investments are concentrated while reflecting the major appropriations contained in Senate Bill 257.
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