Sen. Lee introduces 2026-27 state budget proposal in North Carolina Senate

State Sen. Michael V. Lee has introduced new legislation in the North Carolina Senate intended to set appropriations for state agencies and programs for the 2026-27 fiscal year, the North Carolina State Senate reports.

Filed as SB 916 on April 29 during the 2025 regular session, the bill carries the short title: ‘2026 Appropriations Act.’

Presented below is our summary, which draws from the original bill text and may provide clarification of its measures.

The legislation would enact the “Current Operations Appropriations Act of 2026,” supporting base budget approval for the 2026-27 fiscal year for state agencies, departments and institutions. Funding would come from the General Fund, the State Highway Fund and the State Highway Trust Fund. Federal block grant funds are appropriated for programs related to health and human services and natural and economic resources. The bill also reenacts the State Budget Act, instructs that unneeded appropriations revert to appropriate funds, applies most measures only to the 2026-27 fiscal year, provides a severability clause, and sets an effective date of July 1, 2026, unless otherwise noted.

Among the three sponsors, Ralph Hise was the most active, introducing 47 bills in the 2025 session.

In North Carolina, a bill goes through several steps to become law. A legislator begins the process by filing a bill, which is then assigned to a committee. Legislation must be read three times in each chamber. If either chamber changes a bill after the other has passed it, both must accept the final version. Once both chambers have approved the same text, it moves to the governor, who has 10 days (or up to 30 if the legislature is not in session) to sign it, veto it, or let it become law without a signature.

Additional details on bills and related measures can be found here.

Lee earned his BA from the University of North Carolina at Chapel Hill in 1991 and a law degree from Wake Forest University Law School in 1997.

A Republican, Lee was elected to represent North Carolina’s 7th Senate district in 2023, succeeding former State Sen. Jim Perry.