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SB 440

relative to the adoption of energy efficient and clean energy districts by municipalities.

2026 Regular Session Introduced by Daryl Abbas and 5 co-sponsors

NC SB 440 sets the 2025–27 Governor’s base budget, establishing maximum General Fund appropriations for state agencies and reserves, with unspent funds reverting at year end.

Signed by the Governor on 07/02/2026; Chapter 250; Effective 07/02/2026
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Bill Summary · SB 440

Summary — SB 440: “2025 Governor’s Budget” (North Carolina)

Status: Passed 1st Reading (introduced Feb 18, 2025)
Scope: Base budget appropriations for current operations, FY 2025–2027 biennium

Purpose / Intent

SB 440 (titled the Current Operations Appropriations Act of 2025) is the Governor’s base budget bill that sets the maximum appropriations to state departments, institutions, agencies, and other programs for the 2025–2027 fiscal biennium. It establishes funding levels for current operations, authorizes related reserves and statutory set‑asides, and specifies that unused appropriations revert at fiscal year end unless otherwise provided by law.

Key provisions and changes

  • Appropriates general fund (current operations) totals for each year of the 2025–2027 biennium and itemizes allocations by major department and program.
  • Establishes maximum funding amounts; agencies must achieve savings where total appropriations exceed needs and unspent funds typically revert.
  • Includes statutorily required reservations (e.g., State Capital & Infrastructure Fund, solvency reserves) and specified investments to reserves (e.g., emergency/disaster funds).
  • Directs appropriations across major program areas including Education, Health & Human Services, Justice & Public Safety, Agriculture & Natural Resources, and General Government.
  • Contains budget policy language and standard budgetary provisions (savings/reversion rules, applicability of agency receipts to appropriation totals).

Fiscal totals and major line items (selected)

  • Total Net Appropriation (General Fund): FY 2025–26 = $33,649,107,021; FY 2026–27 = $34,349,758,014.
  • Public Instruction: FY 2025–26 = $12.94 billion (FY 2026–27 = $13.31 billion).
  • University of North Carolina system and related higher education appropriations (aggregate line items shown; UNC total in the document ~ $4.24 billion in FY25–26 in one grouping).
  • Department of Health and Human Services and related health programs: major shares (document shows multi‑billion totals across DHHS subprograms and Health Benefits).
  • Department of Adult Correction, Department of Public Safety, Judicial Department: substantial funding for justice/public safety operations (hundreds of millions to billions by program).

(Note: document contains many detailed program line items; the above are representative top‑level allocations.)

Who is affected

  • All state executive departments, higher education institutions, courts and judicial support, public safety and corrections, and programs funded from the General Fund.
  • Indirectly affects local governments and participants in state programs (education, health services, social services) through funding levels and policy provisions.

Procedural and timeline aspects

  • The bill sets funding for each fiscal year of the biennium (FY 2025–26 and FY 2026–27).
  • It was introduced and passed initial reading in early 2025 and will proceed through the standard legislative budget process (committee review, floor votes, potential conference/adjustments).
  • Enactment is required to make appropriations effective; unspent funds generally revert at fiscal year end unless law provides otherwise.

Notes / Context

  • SB 440 is the North Carolina Governor’s base budget bill and is extensive; the enacted budget may be amended during committee and floor action and in conference with the House.
  • The label “SB 440” is used for many unrelated bills in other states (e.g., California’s “Private Works Change Order Fair Payment Act,” Nevada distributed‑generation/solar legislation, Florida/other states’ measures). This summary pertains to North Carolina’s 2025 Governor’s Budget as described in the bill text and appropriations schedule. If you want a line‑by‑line breakdown or summaries of any specific agency appropriation or a different SB 440 from another state, tell me which section or state and I’ll prepare it.

Compiled from official sources — confirm details with the bill’s official record.

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