GAC Update - January 2, 2026

Stein Endorsement 

Gov. Josh Stein is endorsing Rev. Rodney Sadler, challenger to 7-term voter Democratic Rep. Carla Cunningham. Stein says Cunningham’s constituents “deserve a representative who will fight for Democratic values, defend our public schools, and keep costs down.” 

Turning to Cunningham, Stein brought up the veteran lawmaker’s controversial remarks on the House floor in July about immigration ahead of her decisive vote in favor of House Bill 318 that allowed Republicans to override Stein’s veto of the measure that strengthens requirements for local law enforcement to cooperate with U.S. Immigration and Customs Enforcement.

“You heard the same speech I did on the floor, where she said that some people are better than other people, and that is not something that I can endorse,” Stein said.

Stein reinstates Medicaid cuts 

North Carolina Gov. Josh Stein is expected to restore Medicaid rates at a news conference Dec. 10.

A cut of 3% to 10% in the state’s payments to Medicaid providers took effect in October for many programs. The state Department of Health and Human Services said the cuts were necessary because state lawmakers had underfunded the Medicaid program by around $319 million in its stopgap spending package this summer. 

NC DHHS Secretary Devdutta Sangvai said the state’s Medicaid program is required to have a balanced budget. He said the cuts were intended to ensure the program didn’t run out of money sometime in spring 2026. 

Stein’s office announced a press conference with Sangvai at 9:30 a.m. Wednseday that will include “an update on the status of Medicaid funding.” A spokesperson for DHHS said Sangvai would be in attendance and would speak at the meeting. Stein’s office did not respond to a request for comment.

It is within Stein’s power to order DHHS to restore the rates.

Republican legislative leaders said the cuts were unnecessary because they plan to appropriate more money to fill the gap. 

However, there’s no clear timeline for providing the extra funding: GOP House and Senate leaders have been in a monthslong standoff on the issue. Both chambers have passed separate bills to fund the program, acknowledging it as a need, but have declined to pass each other’s proposals.

Stein previously asked the Republican-led legislature to return to Raleigh and approve legislation to fully fund Medicaid. They rejected his call in November, calling it unconstitutional and politically motivated.

Rural health practices and clinics, whose patients rely on the program, have said they are already strugglingin the face of reduced payments.

The state’s rate cuts have already been challenged in court. An administrative judge blocked an 8% cut for personal care services in adult care homes last month, and ordered the state to pay the full rate. And a separate judge blocked cuts to autism treatment, NC Newsline previously reported.

Filing Deadlines Passed in December, Turnover in NCGA is coming in 2026

Final count is 10 NC incumbents not seeking reelection: 

SENATE:

-Bobby Hanig #SD01

HOUSE:

-Matthew Winslow #HD07

-Ted Davis #HD20

-William Brisson #HD22

-Bryan Cohn #HD32

-John Sauls #HD51

-Mark Brody #HD55

-Stephen Ross #HD63

-Harry Warren #HD76

-Sarah Stevens #HD90