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House adopts continuing budget conference report amid fights over Medicaid rebase and agency cuts
Summary
The North Carolina House voted 91-23 to adopt the conference report on House Bill 125, a continuing budget operations measure. Supporters touted school and economic investments while critics warned of a Medicaid rebase shortfall, cuts to mental‑health and DEQ programs, and new powers or funding for the State Board of Elections.
The North Carolina House adopted the conference report for House Bill 125, the continuing budget operations measure, by a recorded vote of 91-23.
Representative Lambeth, speaking for the conference sponsors, said the plan preserves funding for schools, the state health plan and Medicaid growth, expands some DMV services and includes measures intended to spur economic development. Lambeth pointed to an economic development project mentioned in the debate as "Jet 0," saying it would bring thousands of jobs and called the report "a step in the right direction."
Opponents and skeptics pressed several lines of concern. Representative Reuben warned the bill politicizes the State Board of Elections by creating exempt, politically appointed positions and authorizing a new pool of outside counsel that could circumvent state attorneys. "This is a dangerous move," Reuben said, arguing it would make the elections agency more partisan and create a potential "litigation slush fund." (Representative Reuben, remarks during debate.)
Representative Moyer and others questioned the Medicaid rebase numbers in the conference report. Moyer said the bill includes $600 million in recurring funds for a Medicaid rebase while a separate budgeting metric cited elsewhere was $800 million, leaving an apparent $200 million shortfall. "That would have to come out of Department of Health and Human Services," Moyer warned, and said the bill also reduces several mental‑health line items and reserves by tens of millions of dollars.
Representative Harrison highlighted cuts to the Department of Environmental Quality, saying the conference report reduces DEQ funding by roughly $2.25 million in the current year and nearly $3 million next year and could leave the agency with a high vacancy rate at a time of new statutory duties.
Supporters said the conference report is intended as an interim step toward a final budget and includes compromises reached with the Senate. Lambeth said staff had scrubbed numbers and that the conference report "gets them going" while acknowledging some figures may be revisited this fall.
The House ordered the conference report enrolled and sent to the governor. No amendments were adopted on final passage.
