No Money, Mo Problems: Budget negotiations hit dead end

Recurring spending for North Carolina government operations will continue, but without a budget deal, raises for state workers and teachers are at a standstill.

Senate leader Phil Berger discusses the state of budget negotiations on Tuesday, June 17, 2025.

North Carolina’s top House and Senate leaders said on Tuesday that the two chambers won’t reach a deal on a two-year spending bill by the end of the month, continuing a tradition of untimely budgets and prolonged spending debates in the General Assembly.

Despite much optimism entering the session that a new House speaker could bridge past divides with the Senate, the two chambers remain strongly attached to their respective spending proposals.

State government operations will continue through recurring funds. But the absence of a deal spells delays for teacher and state worker pay raises and stalls a number of projects and policy priorities.

Senate leader Phil Berger told reporters after Tuesday’s session that negotiations were effectively dead.

“It’s pretty clear that we’re not reaching agreement on various provisions,” Berger said. “I just don’t think we should continue to give folks the impression that we’re working towards getting a budget done.”

House Speaker Destin Hall said in response that it’s unlikely there will be any near-term resolution on a budget.