NCJC Release: NC House budget fails to allocate critical resources, prioritizes corporations over communities

RALEIGH (May 23, 2025) — The North Carolina House advanced a budget proposal yesterday that misses the mark on urgent priorities. Rather than building opportunity for all North Carolinians, the House targets cuts to education, health care, criminal justice reform, and consumer protection, while continuing a campaign to rollback equity initiatives.

North Carolina’s constitution guarantees every one of our 1.5 million public school students the right to a sound, basic education. “While offering a long overdue raise for teachers, the House budget proposal still fails to meet the recommendations laid out in the Leandro Comprehensive Remedial Plan,” said Matthew Ellinwood, Director of the Education and Law Project at the NC Justice Center. “The House budget pushes for millions in tax breaks for corporations and the wealthy over critical investments in classrooms, early learning, and student support.”

The House budget also includes proposals—like Medicaid work reporting requirements—that do more harm than good. These policies are costly for the state to administer and add to long-term health care costs by limiting access to preventative care and chronic disease management.

“Instead of investing in prevention and public health, this budget threatens to widen the existing health disparities across our state,” said Nicole Dozier, Director of the Health Advocacy Project at the NC Justice Center. “Proposals like Medicaid work reporting requirements are not only proven to be ineffective—they create barriers to care, drive up long-term health costs, and disproportionately harm those already facing the greatest challenges.”

The budget’s misplaced priorities extend to the justice system as well. The bill seeks to undermine essential government functions like the court system, which should be funded through sustainable public investment, not through fees that punish people living in poverty. The proposed increase in criminal court fees to more than $200 will push more people into a cycle of debt-based driver’s license suspensions, probation violations, and even incarceration—all because they cannot afford to pay.

“This budget sends a clear message about whose interests are being prioritized—and it’s not North Carolina’s working families. By shortchanging health care, education, and equity initiatives while doubling down on corporate tax breaks and punitive policies, the NC House is not offering adequate support to communities they serve,” said Dana Mangum, Interim Executive Director of the NC Justice Center. “Lawmakers have a responsibility to invest in opportunity and fairness, not deepen disparities.”

Intensifying its focus on eliminating diversity, equality, and inclusion initiatives, the NC House version of the budget also aims to eliminate the Office for Historically Underutilized Businesses and strips the NC Human Relations Commission of key duties, including its charge to “promote equality of opportunity.”

The Justice Center does recognize a positive step in this budget: raising the maximum weekly unemployment benefit from $350 to $400. This is meaningful progress for job seekers, though additional increases are needed to reflect today’s cost of living.

Budgets are statements of values and public priorities. Our state representatives should be working to expand opportunities, not limit them. As budget negotiations move forward, we urge lawmakers in both chambers to center the needs of their constituents and prioritize building strong communities rather than defunding critical programs.

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MEDIA CONTACT: Jen Sharp, Interim Communications Director, jen@ncjustice.org