North Carolina officers would be barred from assisting immigration arrests

North Carolina law enforcement officers would be prohibited from helping U.S. Immigration and Customs Enforcement arrest people for alleged or suspected immigration violations or serve warrants ordering removal from the country. The officer restrictions cover North Carolina criminal justice officers and justice officers, without a location limit. Officers also could not accept authority from the federal immigration agency to perform those tasks. Agency agreements would be invalid wherever they violate the agency assistance ban. That ban refers to locations that are not listed, leaving its reach unclear. The restrictions would apply to assistance provided on or after the date the bill becomes law.

Sales of qualifying goods would be exempt from the North Carolina sales tax covered by this provision. The exemption would cover sales of goods that meet the price increase test and are identified by the Department of Commerce. The goods must otherwise be subject to North Carolina sales tax. Their average sales price must have increased by more than 50% in 2025 because of federal tariff changes made and implemented in 2025. The North Carolina Department of Commerce must determine which goods qualify and publicly announce them. The exemption would apply during the 2026–2027 state fiscal year.

North Carolina health and education agencies would examine lost federal funding and report ways to respond. The Department of Health and Human Services would consider alternatives to lost health and research funding. Boards overseeing public schools, universities, and community colleges would separately study education funding eliminated by the federal Department of Government Efficiency. Education reports must estimate losses from reduced, suspended, or canceled National Institutes of Health grants to organizations operating in North Carolina. Those reports must include a proposal for state research funding equal to 50% of the identified National Institutes of Health funding loss. The health department would report by March 1, 2027. Each education board would report by March 15, 2027.

The state would set aside $50,000 each year from the General Fund for the Department of Health and Human Services to establish and operate the North Carolina Institute of Health. The $50,000 would support setting up and running the institute. The larger fund for biomedical and health research grants would remain a proposal. The money would depend on the statewide study and reports. If they find the institute proposal unfavorable, the money must return to the General Fund. The proposed institute would operate as a fund within the Department of Health and Human Services, run by its secretary. The proposal would require open grant applications and consideration of spreading awards among as many counties with qualified applicants as possible. Annual funding would begin in fiscal year 2026–2027. Unfavorable findings would require returning it by May 1, 2027. The proposed research fund would be based only on current fiscal year losses and fully distributed by the end of fiscal year 2027.