Governor Stein signs North Carolina budget with historic pay raises for teachers and law enforcement

RALEIGH, NC (WWAY) — Governor Josh Stein has signed North Carolina’s state budget into law, marking the state’s first full budget in more than two years and approving major pay increases for teachers and public safety workers.

The governor signed Senate Bill 257 on Tuesday, July 7, 2026, along with House Bill 56, which includes technical corrections to the budget.

In a statement following the signing, Stein highlighted what he called historic investments in education, public safety and essential services across the state.

The budget includes what the governor described as the largest starting teacher pay raise in nearly 50 years and the largest overall teacher pay increase in 15 years. It also provides significant salary increases for law enforcement officers and public safety personnel.

“This budget delivers the largest starting teacher pay raise in nearly 50 years and overall teacher pay raise in fifteen years, fully funds Medicaid for the year, and provides historic salary increases to public safety officers who sacrifice to keep our communities and prisons safe,” Stein said.

The governor also pointed to funding for several other areas, including:

• Medicaid funding for the full year.
• Recovery efforts in western North Carolina following recent disasters.
• Investments in community colleges, the DMV, child care programs and cybersecurity.
• Funding for a new veterans’ home.
• Clean drinking water initiatives.
• Summer food programs for children.

The budget also eliminates tax exemptions for electricity used by data centers, according to the governor’s office.

While Stein praised several parts of the spending plan, he also criticized provisions he said would negatively impact state services and local governments.

“The legislature slashed more than 1,000 state government positions, making it harder for us to keep people safe and healthy,” Stein said. He also raised concerns about provisions he described as unconstitutional and said some measures limit executive branch authority and target local governments.

Stein said additional work remains to strengthen investments in education, public safety and other state services.

“But as today’s budget proves, we can work together to get things done,” Stein said. “I am eager to keep at it with the General Assembly to keep building on our momentum to create a North Carolina that’s safer, stronger, and more prosperous with opportunity for every person.”