Federal Audit
Federal transit authorities called out Charlotte’s transit system for failing to meet multiple mandated safety requirements in a new report triggered by a high-profile killing on the city’s light rail. The Federal Transit Administration released its audit of the Charlotte Area Transit System on Monday, months after Ukrainian refugee Iryna Zarutska was fatally stabbed on the Blue Line.
The FTA said it found CATS’ “rate of crimes against passengers” is three times higher than the national average. The agency also said the rate of assault on CATS transit workers jumped to five times the national average in 2025, despite being below the national average the previous two years. The audit cited the agency’s National Transit Database as its source for the claim.
The audit “found several performance issues” including how the CATS assesses risk, tracks system fixes and conducts de-escalation training for staff, the FTA said in a statement on the report. CATS must submit corrective action plans to address 18 findings in the audit to the FTA within 30 days.
The federal agency will review CATS’s plans and monitor progress, including conducting regular meetings with CATS. “FTA is determined to do its part to address the systemic failures within Charlotte’s transit system that led to Iryna Zarutska’s tragic death,” FTA Administrator Marc Molinaro said in a statement.
Primary Order
North Carolina Democrats are making a bid to host the first-in-the-nation presidential primary in 2028 and usurp the title from South Carolina. But obstacles remain, including a Republican-controlled General Assembly that will need convincing before signing onto a potentially expensive early primary.
The state so far is one of 12 finalists picked by the Democratic National Committee to make their case in May for holding their primary before Super Tuesday, the first Tuesday in March, when the largest share of voters weigh in. In seeking first-in-the-nation status North Carolina is going up against Iowa, New Hampshire, Nevada and South Carolina. It would be a massive change for a state that held its primary in May as recently as the 2012 election.
North Carolina Democratic Party Chair Anderson Clayton said in an interview that the party should choose the state to empower Black voters and to recognize its history as a “beacon of the Civil Rights movement.” She also noted that in 2028, North Carolina will have 22 statewide races on the ballot — the most in the country — and an early primary would bring a highly beneficial national focus and investment. “For me, this is about making sure that we have the resources to evenly compete.”
The DNC will select four to five states for the pre-Super Tuesday window, with at least one from the East, West, South, and Midwest. North Carolina will compete against Georgia, Tennessee, Virginia and South Carolina to lead the South, a spot that South Carolina held for years before receiving the first-in-the-nation primary in 2024.
Jumping the line will require approval not only from the DNC but also from the General Assembly, whose Republican leadership have signaled that they remain unconvinced. “We have started the conversation, and I’m hopeful that Republicans would see this as a good economic opportunity for the state,” Clayton said. She cited the money that high-profile presidential candidates would bring to the state by filling stadiums and university auditoriums on the campaign trail.
Demi Dowdy, a spokeswoman for North Carolina House Speaker Destin Hall, said in a statement Monday that “the topic has not been seriously discussed at the legislature or with any Democratic Party officials.”
Vehicle Chargers
President Donald Trump froze billions in funding for electric vehicle charging infrastructure early last year. Now, a federal court says that action was illegal. The North Carolina Department of Transportation had received $109 million to install more EV chargers, especially along major roads. The program required the state to build a network of charging stations no more than 50 miles apart and capable of charging four EVs at a time. But Trump issued an executive order last February halting the program until the new administration could review it.
N.C. DOT had already awarded nine contracts, totaling $5.9 million in projects, but the funding freeze halted the second phase. In January, a federal court determined this action unlawful, calling it “capricious and unnecessary.”
“This is a great victory for clean energy while also overcoming an unnecessary roadblock to critical funding on the road to bringing the United States and our Southeast region into the 21st century,” said Stephen Smith, executive director of the nonprofit Southern Alliance for Clean Energy.
North Carolina had already received approval to resume the program last fall, according to NC DOT’s Heather Hildebrandt, who supervises the agency’s statewide initiatives. The U.S. DOT released new guidance that gave states “greater flexibility,” Hildebrandt said, allowing N.C. DOT to focus on building chargers along evacuation routes, in rural areas and in areas with difficult terrain. The court decision provides developers and states with greater certainty that they'll be reimbursed as they move forward with these multi-million dollar infrastructure investments.
N.C. DOT will launch the next phase of its NEVI program in March, requesting proposals for 16 sites along the state’s alternative fuel corridors.
The state’s outstanding debt totaled $7.38 billion as of last summer according to the most recent study approved by the Debt Affordability Advisory Committee.
The study provides a comprehensive assessment of the state’s ability to issue debt for capital needs. It advises the governor and General Assembly on the estimated debt capacity of the General and Transportation funds for the upcoming 10 fiscal years.
Debt affordability is the amount of debt that can be authorized and issued without negatively affecting the state’s credit position or impairing budget flexibility. This year’s outstanding debt total represents a .27% increase from the previous year.
The state’s general fund has a debt capacity of approximately $1.93 billion in each of the next 10 years. Debt capacity for the state’s transportations funds is $155 million in each of the next 10 years. The committee has set two targets: that the debt service to revenue percentages not exceed 4% for the general fund or 6% for the transportation funds over the next five years.
Nels Roseland, the state controller, said the Annual Comprehensive Financial Report his office is statutorily required to produce includes duplicative financial metrics and debt-related historical tables found in the annual Debt Affordability Study.
“The General Assembly is often looking for ways to increase efficiency, reduce [and] eliminate redundancy,” he said to the committee. “If there was ever an interest by the group to eliminate the duplicate, redundant reporting requirements, I would happily second that motion.”
State Treasurer Brad Briner said such a recommendation could ensure that rating agencies are less likely to miss the debt study report.
“That’s probably easily done,” Briner said. “I think that is a project worth pursuing and would be another example of good government here in North Carolina.”
North Carolina is one of 15 states with a AAA major bond rating affirmed by Moody’s, S&P and Fitch. The control of a state’s debt burden is one of the key factors that rating agencies consider in assessing credit quality. The 2026 study did not identify any factors leading to a possible downgrade.
Between October and November 2025, the state refunded $480.5 million in limited obligation and general obligations bonds. These transactions resulted in savings of $23.1 million. Over the past 10 fiscal years, the state has refunded approximately $2.5 billion of outstanding debt, achieving budgetary savings of over $239 million.
The committee advised that debt service and continuing appropriation to the state’s Solvency Fund should not exceed 4% of revenues.
“I believe that this recommendation continues to represent action to preserve and protect the state’s triple triple-A rating,” Briner wrote in the report.
Technical corrections will be made to the report before it is finalized and made publicly available at the end of the week.