The state House approved the measure Wednesday, clearing the way for final action after it already passed the Senate.
House Bill 696 would provide about $319 million to help cover rising health care costs and increased enrollment in the Medicaid program. State health officials say the funding is needed to keep the program running through the end of June.
Medicaid currently provides health coverage to more than one in four North Carolinians, according to state officials.
In addition to new funding, the bill includes several policy changes. Those changes include shifting Medicaid eligibility checks from quarterly to monthly, tightening documentation requirements, and requiring verification of citizenship and immigration status.
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The legislation also adds language that would require some Medicaid recipients to work or participate in community service in order to maintain coverage.
While the bill passed with strong bipartisan support, some Democratic lawmakers raised concerns about provisions they say could disproportionately affect immigrants, as well as women and children. Republican backers of the bill dispute those claims.
Gov. Stein is expected to take action on the legislation during an event scheduled for 11 a.m. Thursday at the Executive Mansion in Raleigh.