Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
June 30, 2026

House and Senate expected to vote on long-awaited budget this week

House and Senate Republicans on Monday were preparing to unveil the state budget after resolving remaining disagreements over the weekend and expect to vote on the spending plan this week.

The resolution of outstanding budget issues, which came after several meetings between House Speaker Destin Hall and Senate President Pro Tempore Phil Berger last week and discussions that continued over the weekend by phone.

House Majority Leader Brenden Jones said Monday morning that the “budget agreement is being finalized now, with votes scheduled for this week.”

Hall spokeswoman Demi Dowdy told NC Insider/State Affairs the final spending plan is expected to be released Monday evening or Tuesday morning, and will be taken up by an appropriations committee on Tuesday.

By Monday evening, however, House and Senate Republicans had confirmed the final documents wouldn't be released until sometime Tuesday morning.

Senate Republicans held a two-hour caucus meeting Monday afternoon. After the meeting, top budget writer Sen. Brent Jackson, R-Sampson, told NC Insider that he expected the budget to get its first hearing in an appropriations committee meeting Tuesday afternoon.

Jackson said committee plans and other details were still being worked out as of Monday evening.

Both chambers are expected to hold votes on the budget Wednesday and Thursday.

Jones, in a social media post, said the budget will include, on average, 13% pay raises for state law enforcement officers, 8% pay raises for teachers and a $1,750 bonus for all state workers who earn less than $75,000 per year.

The budget is also expected to result in more than $3 billion saved in the state’s reserves, Jones said.

That framework included an average raise of 8% for teachers, an increase of starting teacher pay to $48,000 and a state-funded $5,000 supplement for educators in the state’s most economically distressed school systems.

Most state employees are expected to receive an average raise of 3%, along with bonuses for the current fiscal year, and a onetime 2.5% bonus for retirees.

The framework includes a wide range of salary increases for law enforcement: an average 20% pay raise for the State Bureau of Investigation and Alcohol Law Enforcement, 17% for the State Highway Patrol, 15% for correctional officers and 10% for probation and parole officers.

Hall and Berger held a number of one-on-one meetings over the last two weeks after House and Senate budget chairs completed their work and submitted final lists of items that needed to be negotiated and resolved.

The two GOP leaders met before and after voting sessions on Tuesday and Wednesday, and throughout the day on Thursday, to address items that remained points of contention.

Remaining items that needed more discussion last week included possible funding for an effort to bring a Major League Baseball franchise to the state, a disputed Wake County children’s hospital project and several capital investments, Hall said.

The budget agreement reached on Sunday is not expected to include state funding for the MLB expansion effort.

Limestone Supplier

Martin Marietta Materials, the Raleigh company that makes asphalt, gravel, and cement, is buying a limestone supplier in a $13.5 billion dollar deal. The company will take over Lhoist North America later this year, pending regulatory approval. The deal "will position Martin Marietta as the nation's leading lime and limestone franchise, while providing immediate scale and irreplaceable upstream materials platform across key Sun Belt markets and substantial high-quality limestone reserves," Martin Marietta CEO Ward Nye said in a conference call Monday morning. The purchase comes amid growing worldwide demand for limestone products, known as lime aggregates, which are used in everything from steel to computer chips. Lhoist also produces lime-based anti-stripping agents used on pavement. Martin Marietta Chief Financial Officer Michael Petro said these products will compliment Martin Marietta's existing pavement materials business.

Budd Block

U.S. Sen. Ted Budd took a stand against the Trump administration Thursday evening in order to get Western North Carolina additional relief from Helene. In a news release, Budd, a Republican from Davie County, announced he would vote against any supplemental funding bill put forward until Helene relief was added. A supplemental funding bill provides agencies additional funding beyond what was budgeted. “Nearly two years since Hurricane Helene ravaged our state, debris still clogs waterways,” Budd said in a written statement. “Roads, bridges and dams require repair or replacement. Homeowners are paying mortgages on properties that were wiped away. Quite simply, the need continues to outweigh what the state and local communities can bear.” He continued: “For that reason, I will vote against any supplemental appropriations package that does not include additional funding for Western North Carolina." Budd’s proclamation came one day after President Donald Trump submitted to Congress an $88 billion supplemental package to fund the Iran war, provide aid to farmers and to help combat Ebola.

Veto Overrides

House Republicans, voting in lockstep and aided by the floor absence of one Democrat and an unaffiliated lawmaker, overrode four more of Gov. Josh Stein’s vetoes, enacting three bills into law and sending one to the Senate for final approval.

Three of the bills — House Bill 171 Senate Bill 227 and Senate Bill 558— ban diversity, equality and inclusion policies and programs in state and local governments, public schools and higher education. The fourth, Senate Bill 153, is an immigration enforcement measure that directs state law enforcement agencies to work with U.S. Immigration and Customs Enforcement and allow federal agents to train and delegate their enforcement duties to state officers.

Wednesday’s override votes came 11 months after House and Senate Republicans first acted to override several of Stein’s vetoes in July. At the time, both chambers successfully enacted eight bills over the governor’s objections.

Senate Republicans, who control a supermajority with 30 of the chamber’s 50 seats, voted to override four additional vetoes, sending those bills to the House. Republicans in the House, one seat shy of a supermajority and facing united Democratic opposition on the bills targeting DEI policies, waited nearly a year for an opportunity to defeat Stein’s vetoes.

That opportunity presented itself Wednesday when two swing-voting lawmakers, Rep. Carla Cunningham of Mecklenburg County, who left the Democratic Party in March and registered as unaffiliated, and Rep. Shelly Willingham, D-Edgecombe, were not present on the House floor.

Their absences lowered the required three-fifths majority threshold from 72 to 71, allowing the GOP to override all four vetoes in party-line votes.

Cunningham and Willingham were both defeated in the March primary by challengers who targeted their past votes with Republicans, including multiple bills they helped the GOP override in July.

Anderson Clayton, chair of the North Carolina Democratic Party, said that Cunningham and Willingham’s communities recently “came out in massive numbers to voice their displeasure with the way they’ve been representing them in Raleigh.”

“Today would not have been possible without them once again betraying their communities,” Clayton said.

With each vetoed bill, Republicans made motions to move to the previous question, a maneuver that immediately ends debate and gives the majority party and the minority party three minutes to make final remarks before a vote is taken.

Democrats strenuously objected and repeatedly urged House Speaker Destin Hall to allow for unrestricted debate to give them a chance to voice their opposition to the bills.

Hall replied that each of the bills had been extensively debated during initial movement through committees and passage on the floors of both chambers.

In a statement, Stein said House Republicans were “stoking the culture wars that divide us rather than fulfilling their long-overdue responsibility of passing a budget.”

“It's time for them to do their jobs for the people of North Carolina,” Stein said. “Instead, they are overriding my veto on bills to whitewash the diversity that makes our state strong and to take state law enforcement officers away from their existing state duties, forcing them to act as federal immigration agents."

A fifth vetoed bill that would legalize carrying a concealed handgun without a permit, and lower the age from 21 to 18, was not taken up by the House on Wednesday.

House Republicans held an hour-long caucus meeting following the four successful override votes, but upon reconvening, Hall announced that no further votes would take place.

The House, like the Senate, is also not planning to hold any votes on Thursday, meaning that the next voting sessions will take place on Tuesday.

Asked about the concealed carry bill, Hall told NC Insider/State Affairs “it’s not quite there yet” in terms of support in his caucus, but he believes “it has a realistic chance to get there” at some point before the end of the year.

South Carolina

Leslie ClarkWhitney Williams
By Leslie B. Clark & Whitney Williams
June 30, 2026

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South Carolina Unemployment Rate Falls for Third Straight Month

South Carolina’s unemployment rate declined again in May, dropping to 4.6% and marking the third consecutive month of improvement. State workforce officials reported that nearly 10,000 more residents were employed during the month, contributing to the decline in joblessness. The state’s labor force also continued to expand, growing by more than 78,000 people over the past year and pushing labor force participation to its highest level in a decade.

Workforce growth was recorded across most metropolitan areas, with the strongest gains seen in Myrtle Beach, Hilton Head Island, and Greenville. Nationally, the unemployment rate remained unchanged at 4.3%.

Greenville Infrastructure Debate Expands as State Law Opens New Path for Local Road Funding

Greenville city leaders are exploring a new 1% local sales and use tax that could generate an estimated $400 million over eight years for infrastructure improvements, neighborhood projects, and property tax relief.

The proposal is made possible by a new state law that took effect this year, allowing municipalities to pursue their own voter-approved sales taxes after years of unsuccessful county-wide penny tax efforts. Several Greenville County cities are now weighing whether to place similar measures on the November ballot.

Under the law, at least 20% of revenue must be used to reduce property taxes for owner-occupied homes, while the remaining funds can be spent on core government services and capital projects. For Greenville, officials estimate approximately $80 million would go toward property tax relief and $320 million toward infrastructure and community investments.

A preliminary project list includes the Airport Loop extension of the Swamp Rabbit Trail, a new Queen Street Bridge, two new fire stations, improvements to parks and community facilities, sewer and stormwater upgrades, and a major redesign of Wade Hampton Boulevard. More than $100 million could be dedicated to street resurfacing, along with new sidewalks, bike lanes, intersections, and streetscape improvements throughout the city.

City officials emphasized that the proposal is designed to address long-standing neighborhood infrastructure needs while providing meaningful tax relief. Staff estimates suggest homeowners could receive annual property tax credits of roughly $350 on a $250,000 home and about $600 on a $500,000 home.

The proposal faces a tight timeline. City Council must approve an ordinance by August 17 for the referendum to appear on the November ballot. The effort also comes as Greenville County considers its own transportation sales tax referendum, creating potential competition between city and county proposals. Under state law, municipalities can only implement their own penny tax if the county does not have one in place, making this year a potentially unique opportunity for cities to seek voter approval.

Drive Electric SC

South Carolinians curious about electric vehicles now have a new resource to help them explore EV ownership. The state Energy Office has launched Drive Electric SC, a statewide education campaign that provides information on charging, driving range, costs and other common EV questions. The website features interactive tools for comparing gas and electric vehicle costs, locating charging stations across the state and learning about home and public charging options. Visitors can also access educational resources and hear firsthand experiences from current EV owners to help determine whether an EV fits their lifestyle and budget.

South Carolina Joins Multi-State Lawsuit Against California Packaging Law

South Carolina is among 17 states that have joined a federal lawsuit challenging California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, a sweeping law aimed at reducing single-use plastics and requiring packaging to be recyclable or compostable. The lawsuit, filed by a coalition of Republican-led states and the National Association of Wholesaler-Distributors, argues that California is imposing regulations that effectively affect businesses nationwide.

Supporters of the lawsuit contend the law will increase costs for manufacturers, distributors, and consumers by forcing companies across the country to change packaging practices. The coalition argues that California’s regulations exceed the state’s authority and violate constitutional principles by extending their impact beyond state borders.

California officials and environmental advocates defend the law as a landmark effort to reduce plastic pollution, shift waste-management costs from taxpayers to producers, and encourage more sustainable packaging. The legal challenge is expected to become a significant test of states’ authority to enact environmental regulations with national market impacts.

SC Ports Temporarily Halts Leatherman Terminal Operations

The South Carolina Ports Authority is temporarily suspending operations at the Hugh K. Leatherman Terminal in North Charleston as it evaluates the facility’s future amid rising operating costs and lower-than-expected cargo volumes. The $1.5 billion terminal reopened in late 2024 following a yearslong labor dispute but has not attracted the level of container traffic originally projected.

Port officials said container operations will be consolidated at other Charleston-area terminals while Leatherman remains inactive. The agency cited higher labor costs and reduced demand as key factors in the decision.

The terminal, which opened in 2021 as the state’s first new container terminal in more than a decade, remains available for future use if cargo volumes increase.