The General Assembly is scheduled to return to Raleigh next week with little expectation of passing a state budget. Instead, lawmakers are likely to focus on additional veto overrides while school districts continue to face deep uncertainty over funding.
More Veto Overrides, Still No Budget
The legislature has spent most of the summer out of session, only returning once a month until the long session ends. Despite mounting budget pressures in schools, a compromise remains elusive. The House and Senate are divided over teacher salaries and tax cuts: the House favors larger raises for educators and a slower phase-down of tax cuts, while the Senate proposes smaller raises alongside faster tax cuts.
With no resolution in sight, attention has shifted to veto overrides. Measures potentially up for consideration next week include:
- SB153, requiring cooperation with ICE and prohibiting sanctuary policies in public entities, including UNC System schools.
- SB227, restricting DEI offices in K-12 schools and higher education and prohibiting instruction on so-called “divisive concepts.”
- HB87, opting North Carolina into the federal voucher program.
Federal Funding Uncertainty
At the federal level, Congress also faces an impasse: the House has proposed significant cuts to the Department of Education that largely align with the president’s plan, while the Senate has advanced a budget with only minimal reductions. This resource breaks down the potential impact of the House proposal by congressional district. A budget agreement or continuing resolution must be reached by the end of the month to avoid a government shutdown.
In the meantime, the Department of Education has quietly issued “non-continuation” notices to dozens of programs. These include grants supporting college readiness, arts education, civics instruction, and book access for low-income families. Federal officials say funds are being reallocated toward HBCUs, charter schools, and new projects, including $15 million in annual awards that had previously been directed to special education. The redirection of these funds not only leaves long-standing grantees in limbo, but also creates uncertainty for students and families who relied on them. Any funds not released by September 30 will expire and return to the Treasury.
North Carolina Education Policy Fellowship (EPFP) is Fired Up! The Public School Forum’s 2025-26 EPFP cohort kicked off last week in Charlotte. Fellows heard from Forum Interim Executive Director Ann McColl on the history of public education in North Carolina and from Dr. Dudley Flood, who played a key role in school desegregation. Now in its 45th year, EPFP brings together a diverse group of nearly 100 fellows committed to advancing equitable education policy. This year’s cohort is well positioned to engage policymakers and communities at a time when public schools face heightened uncertainty from stalled state budgets and shifting federal priorities.
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