North Carolina House Budget Boosts Teacher Pay, Delivers Tax Relief, and Cuts Government Waste
Committed to Carolina:
North Carolina House Budget Boosts Teacher Pay, Delivers Tax Relief, and Cuts Government Waste
Raleigh, NC – Today, the North Carolina House of Representatives released a state budget that is Committed to Carolina, delivering meaningful pay raises for teachers and state employees, targeted tax relief for working families, and cuts to wasteful government spending, including DEI programs.
Highlights in the 2025 state budget include:
Raises the state-funded portion of starting teacher pay to $50,000 by the end of the biennium, making North Carolina #1 in the Southeast for entry-level teacher compensation.
Increases teacher compensation by 8.7% over the biennium.
Restores master’s pay, rewarding teachers who pursue advanced training.
Delivers a 2.5% across-the-board raise for state agency employees, community college staff, and UNC System personnel.
Grants state retirees a 1% cost-of-living bonus in year one and a 2% bonus in year two.
Keeps taxes low while offering targeted tax relief to North Carolinians.
Reinstates the back-to-school sales tax holiday starting in 2026.
Exempts the first $5,000 in tips from state income tax, supporting service industry workers.
Increases the standard tax deduction by $500 for individuals and $1,000 for married couples.
Holds down the growth of net general fund expenditures to a historically low 5% over the biennium.
Restores the Rainy Day Fund to $4.75 billion.
Eliminates wasteful spending by cutting nearly 3,000 vacant government positions.
Slashes more than $10 million from state DEI programs.
Funds dozens of new positions at NC DMV and authorizes a privatization pilot program for license renewal.
Redirects NCInnovation funding toward ongoing Hurricane Helene disaster relief and recovery efforts.
Delivers $50 million in school safety grants.
NC House Speaker Destin Hall said, “We’re committed to investing in the people who invest in North Carolina. From raising salaries for teachers and state employees to cutting taxes and slashing bureaucracy, we’re focused on getting the greatest return on North Carolinians’ hard-earned tax dollars while putting more of those dollars back in their pockets.”
Senior Appropriations Chair Rep. Dean Arp said, “We evaluated every area of the state budget, cutting wasteful spending wherever we found it to fund significant pay raises for our teachers and other state employees with no tax increase. What we have proposed is a sensible, credible plan that invests in our people and reflects the priorities of the people of North Carolina.”
Appropriations Chair Rep. Erin Paré said, “Talented educators should never have to leave their home inNorth Carolina to make a living. Raising starting teacher pay to first in the Southeast sends a clear message to our state’s future teachers: build your career, your family, and your legacy in North Carolina classrooms.”
Appropriations Chair Rep. Hugh Blackwell said, “I’m proud to support a budget that prioritizes our students and educators. By raising teacher pay, we’re not only recognizing the essential work teachers do every day, but also helping to attract and retain top talent in our schools.”
Senior Appropriations Chair Rep. Donny Lambeth said, “From eliminating state taxes on the first $5,000 in tips to bringing back the back-to-school sales-tax holiday and raising the standard deduction, the House is committed to keeping more hard-earned money in hard-working North Carolinians’ pockets.”
Senior Appropriations Chair Rep. Kyle Hall said, “North Carolinians deserve a government that works as hard as they do. By eliminating hundreds of vacant government jobs, we’re slashing bloated bureaucracy and redirecting dollars to the classrooms and communities where they belong.”
Appropriations Chair Rep. William Brisson said, “Eliminating more than $10 million in DEI programs that are light on accountability and heavy on cost lets us focus our taxpayer dollars where they matter most: investing in the next generation of students and teachers.”
Senior Appropriations Chair Rep. Larry Strickland said, “Being Committed to Carolina means meeting today’s challenges head-on. Repurposing NCInnovation funds to help communities still recovering from Hurricane Helene proves that fiscal prudence and compassionate response can go hand-in-hand.”
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