Raleigh, N.C. — Josh Stein has unveiled his first budget proposal as Governor. Aimed at strengthening North Carolina’s workforce, it contains significant investments in education, apprenticeships, and unemployment benefits. The plan allocates $138.2 million for the fiscal year 2025-26 and $117.7 million for 2026-27 to develop a skilled workforce and create pathways to high-demand, high-wage jobs.
Investing in Workforce Credentials
The budget emphasizes expanding access to industry-valued credentials. The North Carolina Community College System (NCCCS) is set to receive over $74 million annually to implement a labor-market-driven funding model and offer free tuition for non-credit, short-term workforce training in high-demand fields. Additionally, $10 million is designated for the North Carolina Independent Colleges and Universities (NCICU) to address health care workforce shortages by educating more professionals in the sector.
Enhancing Apprenticeship Opportunities
To bridge skill gaps in critical industries such as construction, health care, and manufacturing, the proposal includes $12.1 million in 2025-26 and $8.1 million in 2026-27 for apprenticeship programs. This includes funding for the Whole System Apprenticeships Model, Work-Based Learning Grants for small businesses and farmers, and the NC Career Launch initiative. An additional $5 million annually is allocated to establish at least 50 new apprenticeships across state government agencies.
Addressing Workforce Development and Reentry
The budget proposes $33.9 million in 2025-26 and $28.9 million in 2026-27 to tackle workforce shortages, particularly in health care. Funds are earmarked for Direct Support Professional Development, vocational rehabilitation workforce stabilization, and the expansion of nursing training sites through the North Carolina Area Health Education Centers (AHEC). Furthermore, $5.6 million annually is allocated to support reentry programs, including post-secondary education funding for incarcerated individuals and the statewide expansion of Local Reentry Councils.
Unemployment Insurance Enhancements
Recognizing the need for more robust unemployment benefits, the proposal seeks to increase the maximum weekly benefit from $350 to $470, with annual adjustments for inflation. The duration of benefits would also extend from 12 weeks to 16 weeks during periods of low unemployment, and up to 26 weeks during high unemployment. A one-time tax credit for employer contributions is included to support businesses facing increased costs and those recovering from Hurricane Helene.
Governor Stein’s budget aims to create a resilient and skilled workforce, positioning North Carolina to meet the demands of a dynamic economy while supporting both workers and employers. A short one-pager on his workforce development recommendations can be found here: Building a Strong Workforce . More information on his entire proposal can be found here: Governor’s Budget Recommendations | NC OSBM
