North CarolinaNorth Carolina funds state services, disaster recovery, and schools
For 2026–2027, the law funds state services and disaster recovery, sets AI lesson and policy requirements for public schools, and creates a conditional county share of SNAP costs.
What it does
The law sets a 2026–2027 General Fund budget with about $34.4 billion in net appropriations for state agencies and other listed purposes.
The law allocates about $706 million for Helene recovery, including federal disaster cost sharing and temporary housing, and transfers $10.7 million for Chantal-related water and wastewater repairs in specified counties.
Public schools must teach students about responsible AI use, its limits, and privacy risks, and adopt policies for how students and staff may use AI.
If federal rules require the State to share SNAP benefit costs, the law directs the state to withhold money from county sales tax distributions to cover the bill.
Argument forAI lessons and teacher training could help students and staff spot unreliable results and protect personal information when using these tools.
Argument againstCounties could lose part of their sales tax distributions to cover SNAP costs, with larger shares tied to local payment errors.
More detail
The law sets maximum General Fund appropriations for state services and other listed purposes. The schedule covers state departments, institutions, and agencies, along with other listed purposes. The amounts are maximums for the listed services and purposes. Unneeded savings generally return to the appropriate fund at the end of the fiscal year. The appropriations apply to the 2026–2027 fiscal year.
The law allocates state funds for Hurricane Helene recovery and Tropical Storm Chantal repairs. The Helene provisions cover counties included in the federal disaster declaration. The Chantal fund covers Alamance, Caswell, Chatham, Durham, Granville, Moore, Orange, Person, and Wake Counties. Most Helene provisions apply to North Carolina counties designated under a presidential major-disaster declaration for Hurricane Helene. Chantal grants cover projects in the named counties that are not eligible for federal disaster reimbursement; grants are capped at $1 million per project. The Helene allocations are for fiscal year 2026–2027. The Chantal fund takes effect when the law takes effect.
The State Board of Education must set AI literacy standards, and public school governing bodies must adopt policies for student and staff use of AI. The instruction standards cover public school students from kindergarten through grade 12. The policy requirement covers students and staff in public school units. AI literacy standards must address responsible use, limits, checking AI results, privacy, and safety. Governing bodies must review the state model policy before adopting their policies. School governing bodies must adopt AI-use policies by June 30, 2027. Revised computer science standards apply beginning with the 2028–2029 school year.
The Department of Health and Human Services must withhold county sales tax distributions to cover the State's SNAP benefit cost share, if federal rules require the State to pay it. The process applies to counties when the State has a federal Supplemental Nutrition Assistance Program benefit cost-sharing obligation. Each county faces a flat assessment based on its sales tax allocation. Counties linked to payment errors may also face a proportional assessment. The State must have a federal cost-sharing obligation for the withholding process to apply. The withholding provisions take effect October 1, 2027. The Department must calculate county shares by October 1 each year.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 7Signed by Gov. 7/7/2026Became Law
- Jul 7Ch. SL 2026-41Major
- Jul 2Conf Report Adopted 3rd
- Vote recorded Conference Rpt Third Reading. Result: pass.Upper
- Vote recorded R3 Ruled Mat'l C RPT Adoption. Result: pass.Lower
- Jul 2Conf Report Adopted 3rd
- Jul 2Ordered EnrolledTo Governor
- Jul 2Ratified
- Jul 2Pres. To Gov. 7/2/2026Minor
- Jul 1Conf Report Passed 2nd
- Jul 1Conf Report Adopted 2nd
- Jun 30Conf Com Reported
- Jun 30Held As Material
- Jun 30Placed On Cal For 07/01/2026
- Jun 30Conf Com Reported
- Jun 30Ruled Material
- Jun 30Re-ref Com On Rules, Calendar, and Operations of the HouseMinor
- Jun 30Withdrawn From Com
- Jun 30Placed On Cal For 07/01/2026
- Jun 29Conf Com Dismissed
- Jun 29Conferees Reappointed
- Jun 29Conferees Changed
- Jun 29Conf Com Dismissed
- Jun 29Conferees Reappointed
- 2025
- Jun 5Conf Com Appointed
- Jun 3Failed Concur In H Com Sub
- Vote recorded Second Reading Motion 9 To Concur. Result: fail.Upper
- Jun 3Conf Com Appointed
- Jun 2Withdrawn From Com
- Jun 2Placed On Cal For 06/03/2025
- May 27Regular Message Received For Concurrence in H Com Sub
- May 27Ref To Com On Rules and Operations of the SenateMinor
- May 23Regular Message Sent To Senate
- May 22Amend Adopted A46Major
- Vote recorded Third Reading. Result: pass.Lower
- May 22Passed 3rd ReadingPassed House
- May 22Ordered Engrossed
- May 21Reptd FavMinor
- May 21Cal Pursuant Rule 36(b)
- May 21Added to Calendar
- May 21Amend Failed A1Minor
- May 21Amend Failed A2Minor
- May 21Amend Failed A3Minor
- May 21Amend Failed A4Minor
- May 21Amend Failed A5Minor
- May 21Amend Failed A6Minor
- May 21Amend Failed A7Minor
- May 21Amend Failed A8Minor
- May 21Amend Failed A9Minor
- May 21Amend Adopted A10Major
- May 21Amend Failed A12Minor
- May 21Amend Failed A13Minor
- May 21Amend Failed A14Minor
- May 21Amend Failed A15Minor
- May 21Amend Failed A17Minor
- May 21Amend Failed A11Minor
- May 21Amend Failed A16Minor
- May 21Amend Failed A18Minor
- May 21Amend Failed A19Minor
- May 21Amend Failed A20Minor
- May 21Amend Failed A21Minor
- May 21Amendment Withdrawn A22Minor
- May 21Amend Failed A24Minor
- May 21Amend Failed A25Minor
- May 21Amend Failed A26Minor
- May 21Amend Failed A27Minor
- May 21Amend Failed A28Minor
- May 21Amend Failed A29Minor
- May 21Amend Failed A30Minor
- May 21Amend Failed A31Minor
- May 21Amend Failed A32Minor
- May 21Amend Failed A33Minor
- May 21Amend Failed A34Minor
- May 21Amend Failed A35Minor
- May 21Amend Failed A36Minor
- May 21Amend Failed A37Minor
- May 21Amend Adopted A38Major
- May 21Amend Failed A39Minor
- May 21Amend Failed A40Minor
- May 21Amend Tabled A41
- May 21Amend Tabled A42
- May 21Amend Adopted A43Major
- May 21Amend Failed A44Minor
- May 21Amend Tabled A45
- May 21Amend Adopted A23Major
- May 21Passed 2nd ReadingMinor
- May 20Reptd FavMinor
- May 20Re-ref Com On AppropriationsMinor
- May 20Reptd Fav Com Sub 2Minor
- May 20Re-ref Com On Pensions and RetirementMinor
- May 19Reptd Fav Com SubstituteMinor
- May 19Ruled Material
- May 19Re-ref Com On FinanceMinor
- May 15Serial Referral To Appropriations Stricken
- May 15Serial Referral To Pensions and Retirement Stricken
- May 15Withdrawn From Com
- May 15Re-ref to the Com on Rules, Calendar, and Operations of the House, if favorable, Finance, if favorable, Appropriations, if favorable, Pensions and RetirementMinor
- May 14Serial Referral To Pensions and Retirement Stricken
- May 14Withdrawn From Com
- May 14Re-ref to the Com on Finance, if favorable, Appropriations, if favorable, Pensions and RetirementMinor
- Apr 29Passed 1st ReadingMinor
- Apr 29Ref to the Com on Appropriations, if favorable, Finance, if favorable, Pensions and RetirementMinor
- Apr 28Regular Message Sent To House
- Apr 28Regular Message Received From Senate
- Apr 17Passed 3rd ReadingPassed Senate
- Apr 17Engrossed
- Apr 16Amend Adopted A2Major
- Apr 16Amend Failed A1Minor
- Apr 16Amend Adopted A3Major
- Apr 16Amend Tabled A4
- Apr 16Amend Adopted A6Major
- Apr 16Amend Failed A5Minor
- Apr 16Amend Adopted A8Major
- Apr 16Amend Failed A7Minor
- Apr 16Amendment Withdrawn A9Minor
- Apr 16Amend Tabled A10
- Apr 16Amend Adopted A12Major
- Apr 16Amend Failed A11Minor
- Apr 16Amend Adopted A14Major
- Apr 16Amend Failed A13Minor
- Apr 16Amend Adopted A16Major
- Apr 16Amend Failed A15Minor
- Apr 16Amend Adopted A18Major
- Apr 16Amend Failed A17Minor
- Apr 16Amend Adopted A20Major
- Apr 16Amend Failed A19Minor
- Apr 16Amendment Ruled Out-of-Order A21
- Apr 16Amend Adopted A23Major
- Apr 16Amend Failed A22Minor
- Apr 16Amend Adopted A25Major
- Apr 16Amend Failed A24Minor
- Apr 16Amend Tabled A26
- Apr 16Amend Tabled A27
- Apr 16Amend Tabled A28
- Apr 16Amend Tabled A29
- Apr 16Amendment Withdrawn A30Minor
- Apr 16Amend Adopted A32Major
- Apr 16Amend Failed A31Minor
- Apr 16Amend Tabled A33
- Apr 16Amend Tabled A34
- Apr 16Amend Tabled A35
- Apr 16Amendment Withdrawn A36Minor
- Apr 16Amend Adopted A38Major
- Apr 16Amend Failed A37Minor
- Apr 16Amend Adopted A40Major
- Apr 16Amend Failed A39Minor
- Apr 16Amend Tabled A41
- Apr 16Amendment Withdrawn A42Minor
- Apr 16Amend Tabled A43
- Apr 16Amendment Withdrawn A44Minor
- Apr 16Amend Tabled A45
- Apr 16Amend Tabled A46
- Apr 16Amend Tabled A47
- Apr 16Amend Adopted A49Major
- Apr 16Amend Failed A48Minor
- Apr 16Amend Adopted A51Major
- Apr 16Amend Failed A50Minor
- Apr 16Passed 2nd ReadingMinor
- Apr 15Reptd Fav Com Sub with Unengrossed AmendMinor
- Apr 15Com Amend Adopted A1Major
- Apr 15Com Amend Adopted A2Major
- Apr 15Re-ref Com On FinanceMinor
- Apr 15Reptd FavMinor
- Apr 15Re-ref Com On Pensions and Retirement and AgingMinor
- Apr 15Reptd Fav Com SubstituteMinor
- Apr 15Com Substitute Adopted
- Apr 10Withdrawn From Com
- Apr 10Re-ref to Appropriations/Base Budget. If fav, re-ref to Finance. If fav, re-ref to Pensions and Retirement and AgingMinor
- Mar 11Passed 1st ReadingMinor
- Mar 11Ref To Com On Rules and Operations of the SenateMinor
- Mar 11Withdrawn From Com
- Mar 11Re-ref Com On Appropriations/Base BudgetMinor
- Mar 10FiledIntroduced
Taxes & BudgetEmergency ManagementEducation