Weekly Legislative Update

North Carolina

 
By Betsy Bailey & Victor Barbour
August 27, 2025

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DMV Lines:

The North Carolina Division of Motor Vehicles is embarking on a major technology overhaul to address long lines and outdated systems, with proposals from vendors being accepted until Oct. 17. This initiative follows a recent state auditor’s report highlighting deteriorating service quality at the NCDMV. The report found that DMV offices are severely understaffed, with average wait times increasing by 15% since 2019. In response, the DMV is also hiring 40 more driver’s license examiners across the state. NCDMV offices in North Carolina have returned to regular hours after the last weekend of expanded Saturday walk-in times. Previously, customers without an appointment could be seen before noon on Saturdays, but this service has now ended.

Lawmaker's Return

The General Assembly is scheduled to be back in Raleigh this week, and Republican leaders want to override vetoes from Democratic Gov. Josh Stein. But as of Friday afternoon, no votes are expected. That puts a big question mark on when, or if, North Carolina will have a comprehensive state budget, as well any veto override votes or other legislative action.

Tuesday’s sessions in the House and Senate are likely to be just brief gavel-in and gavel-out appearances, meaning the work is postponed again. Lawmakers are scheduled to return during the first week of school for most public schools in North Carolina, including the Wake County Public Schools System, which is the largest in the state. But as of Friday afternoon, spokespeople for both Republican House Speaker Destin Hall’s office and Senate leader Phil Berger’s office said it will be a quiet week without any votes.

The Republican-controlled legislature ended its daily business in June, but came back in late July for a busy few days of veto overrides and passing a mini budget. If plans hold and no votes are taken this week, lawmakers aren’t scheduled to come back to Raleigh until late September.

That means another month late on the state budget, too. Democratic leaders, who are in the minority in both the House and Senate, are planning to hold a news conference on Wednesday to talk to reporters about the budget delay.

Sen. Sydney Batch and Rep. Robert Reives, both minority leaders of their respective chambers, will discuss “how the Republican-controlled legislature, despite its near-supermajority, continues to delay vital funding for schools, local governments, and working families.”

Republicans are one vote short of a total supermajority, so can only overturn a Stein veto with help from at least one Democrat, or enough lawmakers absent when they call the vote to obtain the required three-fifths for an override.

In July, Republicans and a few Democrats overturned eight vetoes, with the most controversial about immigration and guns in private schools. Four vetoes were not overridden, because no Democrats would support it: another immigration bill and three anti-diversity, equity and inclusion measures.

Another vetoed bill that would get rid of the state’s concealed carry gun requirement failed because it doesn’t have the support of all Republicans, much less any Democrats. Lawmakers also spent those brief midsummer days drafting and passing the tax bill that Stein vetoed earlier this month.

House Bill 87 wouldn’t create a state tax break, but rather would allow access to a federal tax break that was included in President Donald Trump’s One Big Beautiful Bill Act. If it becomes law, it would allow North Carolina taxpayers starting in 2027 to get a tax credit of up to $1,700 to offset their donations to certain kinds of “scholarship granting organizations.” HB 87 passed the Senate 30-19, along party lines with all Republicans in favor and all Democrats opposed. If that vote holds, Senate Republicans would be able to override Stein’s veto. In the House, however, it passed with all Republicans and two Democrats. That’s one more vote than Republicans need for a successful override. The two Democrats in favor were Reps. Shelly Willingham and Carla Cunningham.

EV Supporters

With a slew of aggressive moves by the Trump administration to put the brakes on the electric vehicle industry, its been a bit of a rough road for the EV industry and clean energy advocates in recent months. From the ending of federal tax rebates for EV buyers to clawing back Biden-era tax credits and loans for a range of clean energy projects, the renewable energy sector has been battling some pretty severe financial and political headwinds in Washington and, more recently, Raleigh.

Tuesday morning, Aug. 19, some Wilmington political leaders and clean energy supporters gathered downtown along the Cape Fear River to make a full-throated defense that moving backwards economically, politically and industrially by re-embracing old technologies isn't in the best interest of North Carolina's economy, the environment, or the health and quality of life of Wilmington-area residents.

The event was part of the national Freedom to Drive summer event series, which is focused on how EVs are delivering cost savings, jobs, and cleaner air to communities across the country.

"In our state, a set of keys meant freedom," said state Rep. Deb Butler, D-Wilmington, as she spoke flanked by a Hyundai EV hatchback and Ford EV pickup. But she said recent moves by the Trump administration to limit access to EVs and return the country's industrial and automotive focus back to gas-powered vehicles threatens to not only cost consumers the freedom to choose what type of vehicle they want, but also the economic future for many parts of North Carolina still struggling to bounce back from the collapse of the state's historic manufacturing industries.

Major EV investments in N.C. include Toyota's $14 billion battery plant in Randolph County, which is forecast to start production later this year, and the $4 billion VinFast EV car plant in Chatham County, although that project has been delayed several years. India-based Epsilon Advanced Materials is also still bullish on building a $650 million, 1.5-million-square-foot EV battery manufacturing facility that could eventually employ 500 workers in Brunswick County.

According to a report by Atlas Public Policy and the Southern Alliance for Clean Energy, North Carolina has seen nearly $20.4 billion in EV investment, ranking the state No. 2 in the Southeast behind Georgia. That corresponds to an estimated 16,250 jobs, with an annual growth rate of 4%.

Butler said the moves to cut the legs out of the country's still-developing EV industrial base doesn't make sense, especially as the rest of the world − namely China − continues to race ahead with what they see as one of the key industries of the future.

While the GOP-controlled N.C. General Assembly recently overrode a veto by Democratic Gov. Josh Stein to walk back some of North Carolina's more aggressive greenhouse-gas cutting goals due to concerns over rising electricity bills and the reliablility of some renewable power sources, the clean energy economic sector − including EVs − continues to grow.

According to the Atlas/Clean Energy report, there were roughly 110,000 EVs registered in North Carolina as of December 2024, with EVs accounting for about 7.2% of vehicle sales. That ranked the Tar Heel State No. 3 in the Southeast, behind Florida and just trailing Georgia, and No. 24 in the nation.

Wilmington Councilman David Joyner, who ran on a clean energy platform, said even as Washington and Raleigh move away from clean energy initiatives, local officials and many residents continue to show their support for the environment and renewable energy options like EVs. 

RDU Runway:

Raleigh-Durham International Airport has received another federal grant to help pay for a new runway. RDU will receive $23 million from a nationwide program partly funded by the big infrastructure bill Congress passed in 2021, Sen. Thom Tillis announced Wednesday. By itself, the grant is a small piece of the $1.1 billion that RDU expects to spend building a new main runway and converting the existing one into a taxiway. But faced with borrowing the bulk of that money, the airport is happy with any federal assistance it can get, says Michael Landguth, the president and CEO. Previously, RDU has received $119 million in federal money dedicated to the runway, Landguth said. It’s one of several projects the airport is undertaking to keep up with passenger growth, including a larger remote parking lot and expansion of both passenger terminals.

South Carolina

  
By Leslie B. Clark & Whitney Williams
August 27, 2025

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David Pascoe for Attorney General

The second candidate for Attorney General has emerged: David Pascoe, First Judicial Solicitor.  Elected Solicitor in 2005, Pasoce’s jurisdiction is Calhoun, Orangeburg, and Dorchester Counties.  In April of 2025 Pascoe piqued the political world’s interest by announcing he was leaving the Democratic Party and joining the Republican Party.  Pascoe faces SC SenatorStephen Goldfinch (R-Georgetown) in the republican primary.

House Insurance Rate Review Ad Hoc Committee

The latest meeting of the House Insurance Rate Review Ad Hoc Committee was held in Columbia last week, bringing together representatives from the insurance industry to serve on an all-day panel regarding South Carolina Insurance Rates. 

The Ad Hoc Committee, led by Representative Gary Brewer (R-Charleston) heard from State Farm, Progressive, United Services Automobile Association, South Carolina Farm Bureau, American Property Casualty Insurance Association, National Association of Mutual Insurance Companies, and Reinsurance Association of America. 

Joining Representative Brewer were Representatives Bill Hixon (R-North Augusta), William Bailey (R-Little River), Gil Gatch (R-Summerville), Roger Kirby (D-Lake City), Carla Schuessler (R-Myrtle Beach), Jermaine Johnson (D-Hopkins), Craig Gagnon (R-Abbeville), Carl Anderson (D-Georgetown), and Brandon Guffey (R-Rock Hill).    

The common theme amongst the insurance industry was that to positively impact rates, you have to bring down the amount paid out by the insurance company.  Some suggested ideas were eliminating phantom claims (the amount billed versus the amount paid), not requiring insurance companies to cover punitive damages, mitigation discounts for building homes to the fortified standard, addressing Tyger River and time-limit demands that are too restrictive, and curtailing roofing fraud after natural disasters. 

The panelists commended the legislature for addressing insurance rates proactively, rather than waiting for a crisis as in Florida, West Virginia, or Georgia.   They also thanked the state for the Catastrophe Savings Accounts program and recommended amending the law further to allow for pre-disaster mitigation.  The South Carolina Safe Home Program  is also a mitigation grant program and the state was one of the first in the country to implement such a program. 

While the committee and its members insisted the discussion was not on tort reform, a lot of the issues were mentioned.   There has been a dramatic rise in lawsuits, 44% in the last year, and law firms continue moving into South Carolina.  Panelists noted tort changes and stronger DUI laws in other states have helped bring insurance costs down. 

The committee thanked the panelists for joining them in Columbia and announced future meetings and topics would be announced shortly.

Joint Bond Review Committee

The Joint Bond Review Committee (JBRC) met in Columbia last week to discuss a lengthy list of projects, including the funding for the US 278 Corridor Project.  The initial plan was to widen the US 278 corridor to 6 lanes and replace and widen the bridges over Mackay Creek and Skull Creek.  Following the 2020 approval from the State Transportation Infrastructure Bank Board, the project costs have ballooned and a plan to partially fund the project with a Beaufort County sales tax increase was defeated.  In light of these developments, the Bank Board revised the project to include the construction of a new three-lane eastbound structure, instead of a six-lane bridge from Bluffton onto Hilton Head Island.  The Bank Board requested, and was granted, approval from JBRC to provide the requested financial assistance for the US 278 project. 

House Department of Transportation Modernization Ad Hoc Committee

The House Department of Transportation Modernization Ad Hoc Committee kicked off their fall meetings last Wednesday with a presentation from SCDOT Secretary Justin Powell.  The Ad Hoc Committee, created by Speaker Murrell Smith (R-Sumter), is co-chaired by Representatives Shannon Erickson (R-Beaufort) and Heather Crawford (R-Myrtle Beach). 

Secretary Justin Powell gave a thorough presentation, providing an overview of the department today as well as a historical review of the changes to the department’s structure.  SCDOT manages the 4^th largest highway network, approximately 41,000 miles, with a recurring annual budget of $2.755 billion.  Breaking down the budget, roughly 50% is for maintenance/preservation, 37% for capacity/operational improvements, and the remaining 13% is for other operations. 

Major legislation affecting SCDOT includes Act 114 (2007), Act 275 (2016), and Act 40 (2017).   The 2017 roads bill increased the gasoline tax and was focused on addressing the 30-year backlog of deferred maintenance.   Powell noted South Carolina in 2017 is very different from South Carolina in 2025.  The state’s rapid population growth over the past four years fuels congestion pressures and inflation has significantly undercut roadwork purchasing power. 

Momentum 2050 is the department’s recent planning initiative which focusses on preventing regression in infrastructure gains, boosting interstate freight capacity, and enhancing multimodal connectivity.  All of which is expected to come at a cost of $1 billion/annually. 

To modernize the department, Secretary Powell said they are optimizing operations by streamlining new technology that integrates with existing systems.  They have also restructured the Bridge Maintenance Office for designing and fast-tracking bridge projects. And they have reduced the total headcount of employees through a Target Operating Model designed for efficiency in the workforce. 

For future efforts, Powell suggested three items: improving transportation planning, modernizing the toolbox, and who pays for growth.  The establishment of a coordinating council for mobility and transportation is needed, along with modernization of procurement.  Expanding the use of progressive design build and public-private partnerships should be incorporated in the department’s future.  Also, new funding mechanisms such as electric vehicle fairness fees, congestion mitigation fees, and the implementation of “choice lanes.”

After fielding questions from almost every member of the committee (see the list below), members of the public were offered 5-minute blocks of time to testify.  Six members from the public spoke, some expressing concern over being decades behind on infrastructure, calling for localities to take authority of the roads, and a suggestion that the Lieutenant Governor would be better suited to take control of SCDOT.  Others encouraged transparency in the road funding process and educating the public on project timelines, and some encouraged the use of mass transit and multimodal infrastructure to curb congestion. 

Representatives Gary Brewer (R-Charleston), Phillip Bowers (R-Six Mile), Don Chapman (R-Anderson), Kambrell Garvin (D-Columbia), Brandon Guffey (R-Rock Hill), Bill Hager (R-Hampton), Bill Hixon (R-North Augusta), Lonnie Hosey (D-Barnwell), Roger Kirby (D-Lake City), Brian Lawson (R-Chesnee), Steven Long (R-Boiling Springs), David Martin (R-Fort Mill), Cody Mitchell (R-Hartsville), Scott Montgomery (R-Spartanburg), Michael Rivers (D-St. Helena Island), Robby Robbins (R-Summerville), Heath Sessions (R-Rock Hill), Mark Smith (R-Daniel Island), Leon Stavrinakis (R-Charleston), James Teeple (R-Johns Island), David Vaughan (R-Simpsonville), and Mark Willis (R-Fountain Inn) also serve on the ad hoc committee.

Representative Chris Murphy Resigns

Shake ups continue in the General Assembly, with Representative Chris Murphy (R-North Charleston) announcing his resignation from the House of Representatives.  Murphy, an attorney, was elected to the House in 2010 and served a term as the House Judiciary Chairman.  Most recently Murphy moved to the House Ways and Means Committee where he served as the constitutional budget subcommittee chairman.   Murphy’s resignation from public office is the 4^th in two weeks and sets up another special election. 

The primaries will be held on Tuesday, November 4 and the special election will be on Tuesday, January 6, 2026. 

SCDOT Commission Workshop

The South Carolina Department of Transportation Commission met in Columbia last Thursday for their annual August workshop.  Executive leadership uses the annual workshop as a chance for a roundtable type discussion of numerous things such as the upcoming budget, expected federal government regulatory changes, regional mobility, and artificial intelligence. 

The workshop began with special guests Representative Shannon Erickson (R-Beaufort) and Representative Heather Crawford (R-Myrtle Beach).  Erickson and Crawford co-chair the House Modernization Ad Hoc Committee and wanted to commend the Commission for their presence at the first meeting of the committee the day before.  They also applauded Secretary Justin Powell for his thorough presentation and advance preparation by visiting every member of the committee.  The education efforts clearly went a long way with the members of the committee.  Erickson said the purpose of the ad hoc committee was for the department to tell the legislature what they need in order to function more efficiently.  And Crawford noted the 2026 elections are looming, which causes a lot of people to focus on what is wrong about the state, but we are clearly doing a lot of things right as evidenced by the influx of population. 

Karl McCottry, Deputy Secretary for Finance and Administration, presented an update to the 10-year plan to include additional state and federal funding.  The General Assembly allocated $200 million for bridge modernization and $35 million for Hurricane Helene recovery costs.  Federal Discretionary Grant allocations include $175 million for the new I-95 bridge over Lake Marion and $195 million for the I-526/Long Point Road project.  The maintenance operations budget will increase from $8.875 million to $15 million to increase signage and pavement markings. 

For the 26/27 FY, the department plans to request the General Assembly continue funding $120 million for federal aid matches, $300 million for bridges, $25 million for a Buyback Program, $5.1 million for the payment to SCPRT for Welcome Centers, and $5 million for off-interstate litter removal.  The Commission received the budget as information only; the final budget recommendations will be adopted in September. 

The proposed Road BuyBack Program will establish a voluntary road transfer program with the goal of right sizing the state highway system. 

Secretary Powell provided an update on the Surface Transportation Reauthorization, which expires September 30, 2026.  The reauthorization bill funds FHWA, FRA, FTA, and NHTSA.  South Carolina is exceedingly well positioned for negotiations.  The bill will need approval from the Budget Committee and the Banking Committee and our senators, Lindsey Graham and Tim Scott, happen to chair those two key committees. 

SCDOT’s priorities for reauthorization include a focus on Formula-Based Transportation Programs.  States need predictable, reliable dollars to deliver projects.  The funding should remain at or above the current levels and should consider indexing annually for inflation.  States can accelerate project delivery by increasing flexibility and reducing regulatory burdens and the federal government should allow states to participate in all funding programs. 

Leah Quattlebaum, Deputy Secretary for Planning, discussed regional mobility and proposed changes to the plan.  The department recommends amending their policies to exclude maintenance or bridge projects from MPO/COG funding, unless part of larger initiatives; adherence to Complete Streets; limiting funding advancements; and clarifying match responsibility. 

Secretary Powell and Chief Information Officer Jim Remsey discussed AI strategy by the department.  Practical uses for AI include crash-risk analytics, drone/vision inspections for infrastructure, freight flow optimization, traffic control/transit analytics, and customer-facing chatbots such as SC511.  Both noted risks associated with AI such as data privacy, accountability, and workforce impact but emphasized the governance principles of trustworthiness and transparency, can ensure the department uses AI responsibly. 

The Commission will convene on Thursday, September for their next meeting.  To view the Commission’s workshop notebook, click here.

Leadership Changes at the South Carolina Ports Authority

Barbara Melvin, CEO of the South Carolina Ports Authority, resigned unexpectedly last week citing “personal and professional reasons.”  Melvin was named CEO three years ago, becoming the first woman CEO of a major port that owns and operates its terminals.  The Port of Charleston is the 8^th largest container port in the United States and handled over 2.6 million TEUs for the 2025 fiscal year, a 3% increase in TEU volume from 2024. 

Who do you know in the SC Legislature?

In preparation for the upcoming legislative session, we would like to know who you know!  Is a public official a high school or college classmate?  Do you work out at the same gym? Play church/community softball together?  Love the same restaurants? You’d be surprised how connected we all are in South Carolina. 

Please help us by telling us who you know in the South Carolina General Assembly, how you know them, and how long you’ve known each other. Click her to complete a form to let us know who you know.

Link: https://form.jotform.com/252294481280155