No More General Assembly Votes in 2026. Budget and Medicaid Fights Loom

North Carolina’s Political Landscape and Governor Josh Stein’s Medicaid Decision

Good morning, and welcome to Under the Dome. I’m Capitol bureau chief Dawn Vaughan, and this edition focuses on North Carolina’s political developments. One of the key stories involves Democratic Gov. Josh Stein and his ongoing battle with the General Assembly over Medicaid funding.

Stein’s decision to end the Medicaid cuts to providers that he implemented in October has marked a significant shift. The cuts were initially made due to concerns about funding running out in April. However, Stein reversed them amid lawsuits and a lack of legislative action. This move was intended to pressure state lawmakers to pass more money sooner, but it ultimately failed. The legislature is currently in a stalemate over the state budget, with the Republican-controlled House and Senate unable to agree on taxes. As a result, North Carolina is now the last state in the country without a new spending plan.

A legislative session is scheduled for Monday in both the House and the Senate, but there won’t be any votes. Spokespeople for both chambers’ leaders confirmed that the session will be procedural, with no further votes expected.

The Legislative Building will not be completely empty, as there are three House study committee meetings on Wednesday. These include the first meeting about reforming property tax law, a priority of House Speaker Destin Hall for 2026. Legislative staff will also be present even if lawmakers aren’t.

For those working in or visiting the Legislative Building this week, there are Christmas decorations to admire, including wreaths on the front doors and the window that overlooks Jones Street, as well as two Christmas trees.

A Historic Moment: NC’s First Jewish Governor Lights the Capitol Christmas Tree

North Carolina’s first Jewish governor, Josh Stein, lit the Christmas tree on the State Capitol grounds during the annual ceremony on Thursday. Stein was joined by schoolchildren for the moment of lighting, and he shared some thoughts about his own faith.

“In my faith tradition, we celebrate a holiday called Hanukkah, that is also about the miracle of light, the miracle of hope and faith. Sometimes, when it’s really dark, it can feel overwhelming, despairing or even scary. But light is more powerful. Because when things are at their darkest, when it is pitch black, a single light can pierce the darkness. A single light can inspire more light,” Stein said before they lit the tree.

“So together, let’s be that light. Let’s ignite our own flame and keep it burning. Let’s be the light in our schools, in our homes, on our sports teams, in our neighborhoods – wherever we are, let’s draw inspiration from the many, many lights that are already shining brightly across our state,” he said.

Stay Informed on North Carolina Politics

Here are more headlines related to North Carolina politics:

  • NC Gov. Josh Stein reverses cuts to Medicaid, but says it’ll run out of money
  • What to know about the high-stakes NC primary between Phil Berger and Sam Page
  • As he challenges Berger, NC sheriff faces investigation – over a vending machine
  • Trump endorses NC Senate leader Phil Berger in primary, offers challenger a job

Be sure to listen to our Under the Dome politics podcast, with new episodes posting on Tuesdays. This past week, I was joined by democracy reporter Kyle Ingram and Raleigh local government reporter Anna Johnson.

Thanks for reading. If you have ideas or feedback about our Under the Dome newsletter, email me at dvaughan@newsobserver.com or our entire politics team at dome@newsobserver.com. Not a newsletter subscriber? Sign up here.

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