April 21, 2026 | Legislative Update | The Return of Short Session

The North Carolina General Assembly returns to Raleigh today to begin the 2026 Short Session, and this year’s session carries more weight than a typical even-year session.

Ordinarily, the short session is focused on making adjustments to the second year of an already enacted two-year budget while handling a narrower set of policy items. This time, lawmakers are returning without a finalized comprehensive budget, which means the most immediate priority will be resolving unfinished fiscal business from last year while also addressing several new issues that have developed in recent months.

The state budget will dominate early conversations. House and Senate leaders still have meaningful differences to work through regarding spending levels, teacher and state employee compensation, reserves, and the broader direction of the state’s finances. Until there is movement on a budget framework, many other major priorities may remain in a holding pattern.

Healthcare funding is also expected to be front and center, particularly around Medicaid financing and reimbursement pressures. There has been increasing discussion over the need for legislative action to stabilize funding and avoid disruptions, making this one of the more urgent matters lawmakers may need to tackle early.

Tax policy will remain part of the broader budget conversation as well. Questions continue regarding the pace of previously enacted income tax reductions and whether those schedules should remain unchanged given competing spending priorities. This has become one of the more significant philosophical divides between the chambers.

Beyond fiscal issues, there is also interest in property tax reform, regulatory matters, education policy, public safety legislation, and targeted economic development proposals. As is often the case in Raleigh, once session begins, smaller bills and client-specific priorities can move quickly and sometimes with little notice.

There is also a political overlay to this session following the March primaries. Internal caucus dynamics, future leadership considerations, and early positioning for the 2026 elections may all shape negotiations in ways that are not always visible publicly.

Our expectation is that this first week may be relatively measured as committees reconvene and leadership sets priorities. Once budget negotiations begin to take shape, the pace can change quickly.