Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
June 3, 2026

Federal Contracting

The U.S. Department of Transportation wants to help small businesses in North Carolina get some of the billions of dollars that the government spends each year on highway and other infrastructure projects. USDOT is holding a day-long event in Raleigh on Thursday, at N.C. State University’s McKimmon Center, that opens with how-to sessions from government and industry experts. There will be chances for small business owners to meet one-on-one with officials from more than a dozen federal agencies, including USDOT, the Interior Department and Department of Housing and Urban Development. Businesses can register for the National Small Business Matchmaking Series event in Raleigh through noon Wednesday, June 3, at cmp.dot.gov/event/nsbmsnorthcarolina. U.S. Transportation Secretary Sean Duffy says the workshops aim to give small businesses access to federal decision makers, both for their benefit and the good of government agencies. “We’re leaving the swamp to meet with American small business owners who are the backbone of our economy and engaging their expertise to build big, beautiful infrastructure projects,” Duffy said in a written statement.

Economic Forecast

North Carolina’s economy is expected to grow by 2.5% over last year, driven by increases in 14 of the state’s 15 economic sectors. This would represent the sixth full year of growth since the pandemic, according to the latest North Carolina Economic Forecast published by the UNC Charlotte Belk College of Business. Last year’s inflation-adjusted GDP is expected to increase by 2.9% over the 2024 level. North Carolina is forecasted to add 65,100 net jobs this year, an increase of 1.3% from the 39,900 expected jobs added last year. However, by December 2026, the state’s unemployment rate is expected to increase to 4.1%, crossing over the 4% mark for the first time in more than a year.

Complications could come from the Federal Reserve’s action on interest rates as it seeks to balance inflation concerns, the effect of the war in Iran, whether Wall Street sees an AI bubble or whether AI spending leads investors to sell tech stocks and slow consumer spending.

Also, if Congress fails to control its spending, inflation could return this year, according to the report that has been issued for more than 40 years, according to the report.

Healthcare Spending

North Carolina residents spend the seventh most percent of their income on healthcare in the nation, a study has found. According to the study from WalletHub, healthcare costs in North Carolina make up an average of 8.78% from a household’s monthly income. The average cost of healthcare in North Carolina is $530, with average prices being third for Lipitor, 11th for an optometrist visit, 12th for Ibuprofen, 19th for a dentist visit, and 22nd for a doctor visit, according to the study. The study found Alaska residents spend the most percent of their income on healthcare, with costs making up an average of 10.08% of their monthly income. At an average of 5.11%, residents in Utah spend the lowest percentage of their income on healthcare, according to the study.

JetZero Progress

A year after announcing North Carolina’s largest economic development project, Long Beach, California-based aviation startup JetZero plans to break ground June 15 on its futuristic jet factory at Piedmont Triad International Airport in Greensboro. The announcement firms up plans disclosed by JetZero CEO Tom O’Leary in February while speaking to business students at Elon University. Gov. Josh Stein is scheduled to join O’Leary for the ceremony next month. The company pledged to invest $4.7 billion and top 14,500 in hiring over the next decade in the production of the Z4 aircraft. Designed in California and to be built in Greensboro, the jet blends the fuselage and wings, weighing less and delivering 50% greater fuel efficiency than traditional jets. It plans to commence service early in the next decade. JetZero said the 8-million-square-foot facility will manufacture up to 20 Z4s a month. It will integrate advanced digital and AI-driven manufacturing processes. On Tuesday, the state’s Economic Investment Committee, part of the NC Department of Commerce, allowed JetZero to modify its job creation targets. Instead of having 1,047 people hired by Dec. 31, 2027, JetZero now expects to push that back a year and have 1,438 people hired by Dec. 31, 2028. Smaller adjustments are also made for 2028 and 2029, and the 12-year agreement ends in year 2037 rather than 2036, but still with 14,564 jobs. The modification is the result in state budget delays pushing back its construction schedule, according to the company. 

DriveNC App

The N.C. Department of Transportation rolled out a redesigned version of its statewide traveler information website last Wednesday, adding new tools, a modernized map and a companion mobile app for the first time. The site's address will remain the same, but the underlying platform is being replaced. The change means users -- including news outlets -- will need to resubscribe for email alerts under the new system. The upgrade introduces several new features, including customizable email alerts for specific routes or regions, real-time feeds from over 1,100 traffic cameras and the ability to view messages displayed on overhead digital highway signs. A free "DriveNC" app for iPhone and Android devices will also debut at noon on launch day. DriveNC.gov has been a key public resource since it was created after Hurricane Floyd in 1999. Last year, the system logged more than 34,000 incidents, including crashes, construction closures and storm-related impacts. Nearly 1.4 million people used the site in 2025, generating about 2.2 million visits.

South Carolina

Leslie Clark  Whitney Williams
By Leslie B. Clark & Whitney Williams
June 3, 2026

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Employment Situation – April 2026

South Carolina’s workforce continued to grow in April, with the number of employed residents increasing to more than 2.54 million, up 7,449 from March and more than 56,000 higher than a year ago.

The state’s labor force also expanded, reaching 2.67 million people. Labor force participation rose to 59.0%, reflecting continued growth in the number of South Carolinians either working or actively seeking employment.

At the same time, the number of unemployed residents declined by 3,296 from March to 128,013. South Carolina’s seasonally adjusted unemployment rate improved slightly to 4.8%, while the national unemployment rate remained unchanged at 4.3%.

Click here to see the Department of Employment and Workforce’s complete report.

South Carolina Department of Environmental Services – Proposed Regulation

On May 22, 2026, the Department of Environmental Services published a Notice of Proposed Regulation in the South Carolina State Register, amending Regulation 61-62, Air Pollution Control Regulations and Standards.

The Department is proposing updates to several South Carolina air quality regulations to match recent federal EPA rule changes. These updates would:

  • Adopt federal air pollution rule changes issued during 2025 for industrial facilities and hazardous air pollutants.
  • Update hazardous air pollutant standards based on federal changes issued in late 2024.
  • Revise regulations for oil and natural gas facilities, including rules covering: existing facilities, newer facilities built after 2011 and 2015, and facilities built after December 6, 2022.
  • Add new standards related to greenhouse gas emissions from existing oil and natural gas operations.

Please contact Scott Bigleman at scott.bigleman@des.sc.gov if you have any questions.

South Carolina Diesel Emissions Reduction Act (DERA) Grant Program - Request for Proposals

The Department of Environmental Services invites universities, private organizations, businesses, and any county, city, or other local government entities in South Carolina to submit applications for the South Carolina State DERA grant program.

 The total funding available for this grant program is approximately $408,000. Entities should submit applications by June 12, 2026, for primary consideration. Applications received after this deadline may be considered as funding is available.

 Please contact the DERA grant team at DERA@des.sc.gov  if you have any questions while preparing your application. Previous projects funded through South Carolina’s State DERA grant program can be viewed on the SCDES DERA webpage.

Ports Authority Begins Construction on North Charleston ro-ro operations

The South Carolina Ports Authority is moving forward with a major expansion of roll-on/roll-off (ro-ro) operations at the North Charleston Terminal, with construction now underway following design approval earlier this month. The new terminal is expected to begin operating in 2027 and reach full completion in 2028.

The project will increase cargo and container capacity at the Port of Charleston and strengthen support for South Carolina’s automotive and advanced manufacturing industries. Ro-ro terminals handle wheeled cargo such as vehicles and heavy equipment, allowing cargo to be driven directly on and off ships rather than lifted by cranes.

The Ports Authority is developing the terminal on the site of a former paper mill acquired in 2024. The expansion will also leverage existing rail infrastructure through a partnership with Palmetto Railways, which will provide rail cargo handling and switching services to improve efficiency and future growth capacity.

Port officials say the investment reflects growing demand from manufacturers that rely on the Port of Charleston for supply chain operations. The port already handles more than 250,000 vehicles annually through its existing ro-ro and breakbulk operations, while South Carolina accounts for 18% of U.S. completed passenger vehicle export sales.

South Carolina Damage Prevention Act – IN EFFECT!

The South Carolina Damage Prevention Act is now effective! These changes affect how tickets are submitted, how emergencies are handled, and how compliance is enforced.

Key updates include:

 • Large Project Tickets – new requirements for marking, notification, and
coordination
• New & Updated Definitions – clarification of terminology that may impact daily
operations
• Enforcement Penalties – updated consequences for non-compliance
• Emergency Ticket Changes – revised procedures for urgent or time-sensitive work

To support implementation of these updates, South Carolina 811 developed a suite of resources to help organizations understand and apply the new requirements effectively.

Available resources include:

• Comparison Sheet – side-by-side overview of what is changing
• Summary Sheet – concise breakdown of key updates
• Law Breakdown – detailed explanation of the revised provisions
• Full Updated Law – complete legal text
• All Law Resources – centralized access to materials and guidance

In addition, South Carolina 811 is offering training sessions and webinars to walk through the changes in detail and answer questions.

Request Training from South Carolina 811 →

View Law Resources →