GAC Update - April 23, 2026

After a grueling primary election that resulted in the loss of President Pro Tempore Phil Berger, the legislature returned to the short session on Tuesday. Debates around what would happen in the Senate this year have circulated, with politicos wondering whether Senator Berger would stick to his position on taxes or negotiate with the House now that the primary is behind him. That remains to be seen, but budget negotiations have resumed. Both chambers are optimistic about the budget this year, with some even saying the budget could be released as a conference report (no ability to amend) as soon as May.

            On Tuesday, there was a major breakthrough when the leaders announced that they had a deal on Medicaid rebase. H696 includes $319 million in Medicaid funding and the chambers wanted to include guardrails on the funding, such as:

●      More frequent eligibility reviews, changing Medicaid eligibility monitoring from quarterly to monthly.

●      Stronger documentation standards, barring self-attestation as the only evidence of eligibility.

●      Citizenship and immigration verification for applicants and their beneficiaries during eligibility determinations and redeterminations.

●      Increased oversight, requiring the State Auditor to conduct a comprehensive audit of the state’s Medicaid program and related workforce programs.

●      Annual transparency reporting, mandating the NC DHHS to report on efforts to identify and address waste, fraud, and abuse.

●      Improved guardrails for ABA therapy, ensuring children with autism receive high-quality care while promoting responsible use of Medicaid resources.

●      Directing the NC DHHS to create a Medicaid integrity and efficiency plan to actively reduce administrative burdens and identify cost-saving opportunities.

The bill also includes:

●      $80 million non-recurring for the NC Department of Adult Correction.

●      $13.1 million recurring and $8.5 million non-recurring for the NC Division of Motor Vehicles (DMV).

●      $10 million recurring and $1 million non-recurring for the NC Scholarship for Children of Wartime Veterans.

●      $2.5 million recurring and $1.2 million non-recurring funds for the NC State Bureau of Investigation (SBI).

The bill was sent to Governor Stein on Wednesday. Neither chamber voted on Thursday, but will return to session Tuesday. No committees met this week.