State lawmakers unlikely to reach budget agreement before 2026

RALEIGH, N.C. (WTVD) -- With no floor votes expected this week, North Carolina appears headed into 2026 without a new state budget in place. While a mini-budget was passed this summer as negotiations continue, North Carolina is now the last state in the country to not have a budget in place -- which has implications on education, healthcare and more.

"Sometimes I grapple with what I want to be able to do for my students, and pass on what my teachers did for me, but feeling it comes at the opportunity cost of what I also what I want to be able to do financially for my own kids," said Kim Mackey, a teacher at Green Hope High School in Cary.

Mackey, a longtime social studies teacher in Wake County, said watching budget negotiations drag into 2026 without a resolution has been frustrating and schools have already felt the repercussions.

"Whereas when I started teaching, you could find plenty of folks who wanted to teach in North Carolina and now it's very, very hard. And we can't just rely on people who are willing to make a financial sacrifice to serve their communities," Mackey said.

There are also major impacts for North Carolina's Medicaid program. According to healthcare advocacy groups, a lack of permanent funding could lead to difficult decisions for providers that in turn impact patients across the state.

"When those cuts happen, services start to decrease support. Staff start to decrease. Doctors start to put the brakes on accepting Medicaid patients," said Lisa Poteat with The Arc of NC, which provides services to people with intellectual and developmental disabilities.

Last week, ABC11 was there as Governor Stein reversed cuts to Medicaid reimbursement rates in North Carolina, citing a lack of legislative action. Those were cuts NCDHHS made earlier this fall as they awaited new funding from state leaders, which now appears uncertain. With funding set to run out sometime this spring, Poteat says they'll be advocating with lawmakers early in the year.

"This is not for any new or additional services. This is for existing services. So people don't go without what they're currently getting. So we'll go to work early next year with legislators, helping them understand the importance of getting this done. The sooner the better," Poteat said.

ABC11 reached out to Senate President Phil Berger and House Speaker Destin Hall for the latest in those budget negotiations, but has not heard back.