Governor Josh Stein is proposing a $3 billion spending increase that includes pay raises, targeted tax cuts, and a freeze on new school vouchers, setting up a major policy debate with lawmakers. The plan comes as the 2026 General Assembly short session gets underway, though no veto override votes were taken on the first day. Legislators are also pushing back in court against a challenge to northeastern North Carolina Senate districts, defending the current map. Attention now turns to a pending Medicaid vote, expected to be one of the key early issues this session.