People observe from the gallery as the votes are tallied on the state budget bill during a House session on Wednesday, July 1, 2026, at the Legislative Building in Raleigh, N.C.

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Just when North Carolina seemed finished with the 2026 state budget, lawmakers are pulling it back in.

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The Republican-controlled General Assembly adjourned and went home in early July after sending Democratic Gov. Josh Stein an overdue state budget, which he signed into law. The budget spends about $34 billion of taxpayer money and was delayed for a year by GOP in-fighting over taxes and raises.

Now, just a few weeks later, lawmakers want to make some changes, with new legislation moving quickly through the Senate.

House Bill 268 is a technical corrections bill, which means there are indeed some technical changes. That’s standard operating procedure and some of it is just shifting how budget items are coded or extending deadlines.

But over the 51-page document negotiated by Republican House and Senate leaders, there are also shifts in money, power and control. It shifts board appointments but also restores some cuts to programs and vacant jobs, and adds policy like excused religious instruction time in public schools.

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Here are major changes in the legislation:

The bill passed 34-8. The eight senators who voted against the bill were all Democrats. The only debate on the floor was from Democratic Sen. Lisa Grafstein of Wake County, who objected to changes to appointments. She called it a violation of separation of powers by taking power away from the governor.

The Senate came back to work this week and quickly moved the bill as soon as it became public, with plans to approve the bill before they adjourn for another break. It easily passed a vote Tuesday and will have its final procedural vote on Wednesday.

But the House won’t return until next week, when it plans to take up the measure on Aug. 4.

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This story was originally published July 28, 2026 at 4:11 PM.

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