AANC Government Affairs Update | September 25, 2025
NC UPDATE | From McGuire Woods
The North Carolina General Assembly convened this week for a two-day session focused on several priorities. Notably, lawmakers sent a regulatory reform package and a measure increasing accountability for magistrates to the Governor’s desk. In total, four bills passed this week, and legislators also held a hearing on Hurricane Helene recovery efforts. The Governor has 10 days to sign, veto, or allow the bills to become law without signature.
Lawmakers are scheduled to return to Raleigh on October 20 with an agenda yet to be determined.
REGULATORY REFORM
Lawmakers advanced a comprehensive regulatory reform package, HB 926: Regulatory Reform Act of 2025, after months of on-and-off debate. Some provisions included in the legislation:
- Permits the use of non-grade-stamped dimension lumber in one- and two-family homes under strict conditions;
- Prevents cities and counties from imposing design or construction standards for residential streets beyond what NCDOT requires starting January 1, 2026;
- Bars local governments from mandating additional pavement or fire access roads beyond fire code minimums.
The bill also prohibits fees or “fail” records when inspections are canceled more than one business day in advance and eliminates waiting periods for refiling development applications. Notably, many of the developer-friendly provisions floated earlier in the year were not included in this bill, though lawmakers signaled that additional reforms could be on the table later this year or in 2026.
IRYNA'S LAW
In response to the fatal stabbing of Ukrainian refugee Iryna Zarutska in Charlotte, the legislature approved a sweeping criminal justice package, HB 307: Iryna’s Law. The bill tightens pretrial release rules, restricts cashless bail, requires mental health evaluations, and authorizes new methods of execution. It also strengthens oversight of magistrates by creating new rules on conflicts of interest, empowering the Chief Justice of the Supreme Court to suspend magistrates when warranted, and clarifying that the failure to make required written findings of fact may be grounds for suspension or removal. A first violation would not trigger removal, but repeated violations could. Lawmakers emphasized that the goal of the magistrate changes is to improve accountability and consistency in magistrates’ work across the state.
BUDGET AND MEDICAID FUNDING DEADLOCK CONTINUES
House and Senate leaders remain at an impasse over the state’s two-year budget, leaving the state to operate under a continuation budget since July 1. The chambers have differences on several major spending priorities, stalling negotiations through the summer. While overall budget negotiations remain underway, legislators have passed a handful of “mini-budgets” to cover essential items like initial Medicaid base funding, step increases for employees, and enrollment growth in schools. This week the legislature sent an additional mini-budget to the Governor’s desk, HB 358: Continuing Budget Operations Part II, which includes funding for disaster relief, economic development projects, and construction projects.
REMOTE DRIVERS LICENSE SERVICES
Finally, lawmakers sent a fourth bill to the Governor’s desk this week, SB 245: Expand Remote Drivers License Services. It expands the DMV’s ability to offer remote services, including renewing a driver’s license when the last renewal was in person, allowing a second consecutive remote renewal for eligible drivers, and remotely issuing full provisional licenses under the state’s graduated licensing system.
HURRICANE HELENE RECOVERY
Lawmakers received updates on Hurricane Helene recovery during a meeting of a Joint Committee on Governmental Operations subcommittee on Wednesday. Samaritan’s Purse reported repairing or building fully furnished homes for more than 4,000 families at no cost, while Avery County Commissioner Dennis Aldridge noted the county has spent $53 million on debris removal with little FEMA reimbursement. Yancey County Manager Lynn Austin said their $37 million budget has been consumed by recovery, with more than 100 families still displaced and living in campers. Both stressed the urgent need for faster federal funding and greater flexibility in debris removal.
State Treasurer Brad Briner highlighted the effectiveness of the state’s disaster cash-flow loan program, designed to help local governments bridge funding gaps while awaiting FEMA reimbursements. Loans were issued just 40 days after the program’s launch, with $150 million already allocated and an estimated $850 million more potentially needed. Briner underscored the importance of flexibility and transparency in sustaining the program.
Representatives from GROW NC, the Department of Commerce, and the Governor’s Office reported on overall recovery progress: more than 500 homes repaired, all impacted state parks reopened, 98% of state-maintained roads restored, scholarships provided to 48,000 students, and $148 million in loans extended to local governments. Despite this progress, only about 10% of the estimated $60 billion in total damages has been covered through state, federal, and insurance resources. The slow rollout of federal hazard mitigation buyouts, none of which have yet been approved, remains a pressing challenge, leaving many families in limbo. Lawmakers expressed concern about federal delays, contractor shortages, and the long-term risks of stalled buyouts and debris removal, while also discussing ways to expand support for volunteer groups engaged in recovery.
Links of Interest:
- NCDOT to receive $1.15B in federal Helene relief | The North Carolina Department of Transportation NCDOT received some welcome news on Tuesday, after US Department of Transportation Secretary Sean Duffy announced that the NCDOT will receive $1.15 billion in additional emergency relief funding for Hurricane Helene repairs, the largest single allocation under the Federal Highway Administration’s Emergency Relief (FHWA ER) Program for a state in the department’s history.
- NC mini-budget steers to storm relief, Lenovo Center, schools, airports | he North Carolina General Assembly passed a “mini budget” Tuesday that concentrates on disaster recovery and targeted infrastructure and education spending.
PIEDMONT TRIAD UPDATE
Information provided by the Piedmont Triad Apartment Association (PTAA)
PTAA is having a Government & Industry Affairs Committee meeting. Next week on Thursday morning. Sign up here.
The next Alamance County Local Officials' Breakfast is September 30 in Burlington. The host community is The Louie, a converted hotel property. PTAA has started reaching out to local officials in Alamance and Caswell, two counties in an area experiencing a lot of growth. Register for the Alamance Breakfast
TREBIC's annual Pig, Poultry, and Politics event is Thursday, October 9, at Starmount Country Club. PPP is the premier event where you can mingle with elected officials and candidates in Guilford County, the City of Greensboro, and other local jurisdictions. Register as a PTAA member.