The North Carolina General Assembly passed a bill presented as a series of “technical corrections” to state budget with several political and administrative changes.
The measure limits the governor's ability to appoint his cabinet and strips Secretary of State Elaine Marshall of her automatic seat on the Local Government Commission.
In addition, it grants greater autonomy to security agencies and distributes millions in private subsidies, among other changes.
El House Bill 268It was approved by both legislative chambers. a vote 79-28 in the House of Representatives and 31-6 in the Senate.
It now goes to Democratic Governor Josh Stein, who can sign it, let it become law without his signature, or veto it.
The Senate has more power over the cabinet
When the governor appoints a cabinet secretary, That appointment will have to be confirmed by the Senate during that same two-year legislative period.
If the Senate does not confirm him in time, the person “will cease to serve as head of that state department,” the measure says.
The governor will not be able to reappoint her to the same position for the duration of his term.
This applies to appointments made in the 2025-2026 period, that is, as soon as it is approved.
The Secretary of State loses her seat on the Local Government Commission
The project rewrites who sits on the Local Government Commission, the nine-member body that oversees the finances of counties, cities, and other local entities in North Carolina.
Under current law, four of the members automatically occupy their seats simply by holding these state positions: the treasurer, the auditor, the Secretary of State and the Secretary of Revenue.
The other five positions were appointed by these different authorities: the governor, the leaders of the Senate and the House of Representatives, and the treasurer.
The project HB 268 It takes away the automatic seat on the Local Government Commission from the Secretary of State, Democrat Elaine Marshall.
Instead, if the measure is approved, that position will be filled by someone appointed by the Legislature upon the recommendation of the Senate's pro tempore president, currently Republican Phil Berger.
More independence for state police and other agencies
The SBI and the Highway Patrol will be able to handle their own office purchases, contracts, and leases without going through the Department of Administration, agency currently managed by Governor Stein.
In addition, the SBI director will be able to exempt up to 15 employees, previously 10, from the normal protections provided by the state human resources law.
The Department of Labor also gains independence. It can now decide whether or not to use government technology services, something that was previously mandatory.
The State Fire Commissioner's Office will have direct control over its own staff and administration. It also receives $1.25 million and seven new employees.
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Religious instruction and data from publicly funded private schools
The provision requires principals to authorize excused absences for "at least one hour, but no more than four" of religious instruction per week.
It also changes a rule regarding the scholarship program Opportunity Scholarship, which uses public money to pay tuition at private schools.
The results of the exams taken by scholarship students will no longer be considered public information.
However, the state will continue to review at least 4% of participating schools each year to verify that they are administering those tests.

Grants to non-profit and private organizations
The project also distributes tens of millions of dollars in direct grants, some already known and others new.
The largest is $10 million for the Piedmont Triad Charitable Foundation, with the stated intention of adding another $30 million over the next three years to bring PGA Tour events to Greensboro.
This grant is exempt from the normal rules that apply to this type of state funding.
Other assignments include:
- $5 million to repair facilities at the Veterans Restoration Quarters in Asheville, following damage from Hurricane Helene.
- $1.5 million for HBOT 4 Heroes, an organization that provides hyperbaric oxygen therapy to veterans with brain injury or post-traumatic stress.
- $1 million for the CAGC Foundation, linked to the construction industry, for job training programs.
- $1 million for Campbell University, for its reintegration program “Second Chance Initiative”.
- $500,000 for Baptist Children's Homes of North Carolina.
- $250,000 for the Samantha and Kyle Busch Bundle of Joy fund.
- $90,000 for the South Caldwell Optimist Club.
Several organizations already receiving benefits are getting increases: Charlotte Healthcare Coalition will now receive a total of one million dollars, Care Ring will increase to 700,000, and Southeastern Healthcare of North Carolina will reach 600,000.
Whats Next?
Governor Stein has 10 days from the date the measure was passed to decide whether to sign it, veto it, or allow it to become law without his signature.
Stein told reporters after a State Council meeting that he has not yet decided whether to sign or veto the bill when it reaches his desk.
If Governor Josh Stein vetoes the bill, it returns to the General Assembly, where lawmakers can override his veto if they achieve a three-fifths (60%) majority in both chambers.



