North Carolinas Budget Standoff: A Risky Game of ChickenNorth Carolina enters 2026 as the only state without a finalized budget, with Republican lawmakers in the General Assembly and Democratic Governor Josh Stein at odds over income tax cuts and healthcare spending. The main point of contention is the states income tax rate for 2026, with House Speaker Destin Hall advocating for a pause in automatic cuts due to high inflation, while Senate Leader Phil Berger insists on sticking to the planned cuts.The budget impasse has led to state agencies operating on the old budget and short-term mini-budgets, with a significant gap in Medicaid funding that could run dry by June 2026. This has put Medicaid recipients and providers at risk, as Governor Stein has had to reverse cuts due to lawsuits and backlash. School districts are also suffering, with North Carolina ranking last in per-pupil spending, and teacher raises on hold amid debates over pay hikes and school choice.The budget standoff comes just before the 2026 midterms, where Democrats hope to flip the Senate supermajority. With Senate Leader Berger facing a tough primary on March 3, the budget impasse could drag into spring, potentially impacting the midterm elections. Checkout Solipillow.com

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