SB 257, the 2025 Appropriations Act, allocates funding for North Carolina's state agencies, departments, and institutions for the 2025-2027 fiscal biennium. It provides budget authority from the General Fund, Highway Fund, and Highway Trust Fund to cover current operations, maintenance, and specific programs like those managed by the Department of Transportation. The bill also includes federal block grant funding for health and human services (DHHS) and other designated programs. This funding measure directly affects all state entities receiving these appropriations and becomes effective July 1, 2025.
This bill directs the North Carolina Department of Transportation to conduct a study on how well the Strategic Prioritization Funding Plan for Transportation Investments is working. The department must examine why some projects under this plan are delayed and gather input from construction partners and planning groups. By November 1, 2026, the agency will submit a report with its findings and suggestions for improving project delivery to state legislative committees. The bill does not change any laws immediately but requires an evaluation to inform future decisions on transportation funding.
This bill, known as the Mike Clampitt 1st Responder Tax Fairness Act, aims to expand tax exemptions for volunteer fire departments and rescue squads in North Carolina. Specifically, it allows these independent groups, which have two or fewer paid employees and are already exempt from state income tax, to avoid paying a highway use tax on specific emergency vehicles like fire trucks, forest firefighting units, and other emergency service vehicles. The change applies to vehicles when a certificate of title is issued on or after July 1, 2026, ensuring these organizations can acquire necessary equipment without incurring this particular tax. By broadening the existing exemption, the legislation directly benefits volunteer responders who operate outside of local government units.
HB 948, the P.A.V.E. Act, amends North Carolina law to allow Mecklenburg County to levy an additional 0.5% local sales tax specifically for public transportation systems. The bill defines "public transportation system" broadly to include buses, transit facilities, bike/pedestrian infrastructure, and automated transport tunnels, while excluding general roads. Funds collected must supplement, not replace, existing public transit funding and can only be used for financing, building, operating, or maintaining these systems. The tax proceeds would be distributed monthly to Mecklenburg County and its public transportation authorities per a financial plan, with the bill taking effect only if Mecklenburg levies this tax.
HB 47, the Disaster Recovery Act of 2025 - Part I, allocates $524 million from the Helene Fund to support recovery efforts in North Carolina counties impacted by Hurricane Helene. The bill directs funds to specific programs including home reconstruction ($120 million), agricultural crop loss assistance ($200 million), road and bridge repairs ($100 million), small business infrastructure grants ($55 million), debris removal ($20 million), fire department equipment ($10 million), and tourism promotion ($4 million). These resources directly assist residents, farmers, local governments, and businesses in designated hurricane-affected counties by addressing immediate rebuilding needs and supporting economic recovery. The bill requires programs to align with federal disaster recovery guidelines to maximize potential federal reimbursement, with reporting requirements for certain initiatives.
