This week, the NC House of Representatives adopted a fiscally prudent, conservative, pro-family budget with broad bipartisan support. The chamber’s version of the state budget bill, SB 257—2025 Appropriations Act would appropriate $32.58 billion in the 2025-2026 fiscal year and $33.3 billion in the 2026-2027 fiscal year, and it contains a myriad of pro-family measures. The full NC House gave approval to the proposed 523-page spending plan on Thursday by a strong bipartisan vote of 86-20. The bill now returns to the State Senate for further consideration.
TAXES: Regarding taxes, the House budget would increase the state-level income tax standard deduction for individuals by $500, and by $1,000 for married couples filing jointly. The bill would also reinstate the Back-To-School Sales Tax Holiday, allowing tax-free purchases of clothing, school supplies, school instructional materials, computers, school computer supplies, and sports or recreational equipment during the first weekend in August.
The House budget also makes adjustments to the “trigger amounts” for scheduled reductions in the personal income tax rate for North Carolina taxpayers. While some have attempted to characterize this modification as a “tax increase,” because it may delay future reductions in the personal income tax rate, House budget leaders have told NC Family that adjustments to the tax reduction triggers in the House Budget are not only prudent—considering future economic forecasts—but also ensure that the state does not have to rely on revenues from things like gambling expansion or the legalization of marijuana to balance the state budget.
Among other measures, the House budget proposal includes the following key provisions:
PREGNANCY CARE CENTERS: Of particular note in the House budget is the continuation of funding for the Carolina Pregnancy Care Fellowship in the amount of $12 million over the next two years. These funds are to be used to provide grants to pregnancy centers across the state to purchase durable medical equipment (i.e. ultrasound machines), to provide training on that equipment, and to provide other services. It is widely recognized that a significant percentage of women who are considering abortion and who see their unborn child via ultrasound ultimately make a decision for life. Funds are also made available to help fund operation of the Fellowship’s Circle of Care Program. The House budget also includes $500,000 in 2025-2026 for the Human Coalition’s pro-life Continuum of Care Program.
FORWARD FUNDING OF OPPORTUNITY SCHOLARSHIPS: During the 2023-2024 legislative biennium, the NC General Assembly made the state’s educational choice Opportunity Scholarship Program universally available to all North Carolina families on a sliding scale based upon family income. State lawmakers also provided significant funding for years into the future for Opportunity Scholarships. The House budget maintains the universality of NC’s Opportunity Scholarship Program as well as the future funding, so families across the state are better equipped to send their child(ren) to the school of their choice.
SOCIAL MEDIA PROTECTIONS FOR MINORS: The House budget includes the provisions of HB 301—Social Media Protections for Minors Under 16, which would prohibit social media platforms from allowing minors under 14 years of age to establish accounts with the platform. It would also allow 14 and 15 year olds to establish social media accounts only if the platform first obtains the consent of the minor’s parent or guardian.
RESPONSIBLE FATHERHOOD INITIATIVES: The House budget also includes $5 million in funding for responsible fatherhood programs, including the “All Pro Dad” fatherhood program and the “Responsible Fatherhood North Carolina” program. The intent of these programs is “to recognize and support the important and unique role that fathers play in ensuring the physical, emotional, and economic well-being of their children and families.”
WHAT’S NEXT: Following passage by the State House, Senate Bill 257 will return to the State Senate. It is expected that the Senate will not concur with the House modifications to the budget and will send the bill to a conference committee where House and Senate members will be assigned to iron out differences between the House and Senate versions of the bill.