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AANC Government Affairs Update | July 31, 2025

Date postedJuly 31, 2025
AANC News,
Information from McGuire Woods Consulting 

The North Carolina General Assembly convened for a three-day session this week to address multiple outstanding issues and override several of Governor Stein's vetoes. The legislature is now adjourned until August 26. Over the next few weeks, legislative leadership in the two chambers will be evaluating whether they will hold votes in the August session. Per the adjournment resolution, lawmakers have the option to return monthly for the rest of the year to consider specific measures.
 
Squatters
In early July, Governor Stein vetoed the squatters bill (HB 96: Expedited Removal of Unauthorized Persons) due to an unrelated provision concerning pet stores. To get past the controversy of the pet store provision, AANC successfully worked with lawmakers and other stakeholders to introduce SB 55: Expedited Removal of Unauthorized Persons during this week’s session. The new squatters bill successfully passed both chambers with strong bipartisan support and is back on the Governor’s desk as of today, July 31. The Governor has 10 days to sign or veto the measure.
 
Disaster Recovery
On Monday, the House Rules Committee introduced HB 907: NC Recovery and Resiliency Act. This bill would establish a state commission to centralize and streamline disaster readiness, recovery, and resilience efforts. The commission would consolidate related programs from multiple state agencies, oversee planning and coordination, manage recovery funding, and implement long-term mitigation projects. Rules Chair Rep. John Bell stated they were presenting the bill to start the conversation and will work on it throughout the interim, hoping to take it up during the 2026 short session.
 
On Wednesday, the Subcommittee on Hurricane Response and Recovery of the Joint Legislative Commission on Governmental Operations heard from state officials on Hurricane Helene recovery efforts, specifically regarding debris removal. Debris removal remains a major concern, with over 50 million cubic yards of debris and only a portion cleared. Lawmakers questioned state officials about delays, complex federal rules, and mounting local costs. North Carolina has invested over $1.6 billion in recovery and is covering FEMA's non-federal match to ease local burdens. Cleanup on private property and in wildlands continues, with officials warning the recovery will take years. Presentations from the meeting are available here.
 
Regulatory Reform
The Senate introduced a regulatory reform measure this week, HB 926: Regulatory Reform Act of 2025, but ultimately pulled the measure back before it reached the floor, citing the need for additional work. Among its 21 provisions, this bill would:

  • Prohibit local governments from mandating pavement design standards more stringent than the state's minimum standards,
  • Prohibit local development regulations from imposing waiting periods before a denied or withdrawn zoning or development application can be refiled, and
  • Limit the Environmental Management Commission's ability to make additional information requests during stormwater and sewer permit reviews unless the information was previously identified as missing or falls under specific exceptions.


Mini-Budget
This week the legislature approved a $2.3 billion “mini-budget,” HB 125: Continuing Budget Operations, to address immediate state needs while comprehensive budget negotiations continue. The bill covers essential expenses including K-12 and community college enrollment adjustments, teacher pay raises, $600 million for Medicaid, over $800 million for construction projects, and funding for new DMV offices and staff to reduce wait times.
 
The state has been operating without a new full budget since the July 1 deadline, with House and Senate negotiators still divided on key issues such as tax cut expansions. Legislative leaders indicated additional mini-budgets may be necessary in coming months to cover additional needs. State law prevents a government shutdown by continuing the previous year's funding levels. HB 125 passed with bipartisan support and now heads to Governor Stein for consideration.
 
Veto Overrides
Governor Stein vetoed 14 measures from the final days of the long session in June. This week, lawmakers successfully overrode eight of those vetoes. While Senate Republicans hold a veto-proof majority, House Republicans are one seat short. Several House Democrats crossed party lines to enable the successful overrides.
 
Bills now law following veto overrides:

Bills overridden by the Senate but not yet taken up by the House:

Veto overrides not yet considered by either chamber:

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