For small business owners, the states are high as the General Assembly prepares to gavel in for its 2026 short session at noon on April 21.

With no finalized 2025 budget and a major political shakeup following the recent primaries, NFIB will be monitoring a crowded and uncertain agenda.

Here’s a look at the key issues and dynamics to watch in this unusual session.

Passing a State Budget

In even-numbered years, the short session is usually reserved for adjusting the two-year budget passed the year before. But 2025 ended without a finalized budget, leaving North Carolina without a full spending plan for the current biennium.

As a result, lawmakers’ top priority will be resolving the 2025–2026 budget impasse. For small business owners, the ongoing uncertainty is about more than government spending. It affects the stability they need to plan, hire, and invest.

New Power Dynamics

The session will also be shaped by the fallout from the 2026 primaries. Several incumbents from both parties lost their races, including Senate President Pro Tempore Phil Berger. While he will serve through the end of the year, his status could change negotiations between the House and Senate.

“We’ll be watching closely to see whether this shift leads to gridlock or a push to pass major legislation before new leadership takes over,” NFIB State Director Gregg Thompson said.

Small Business Issues

Thompson said NFIB’s priorities this session will include:

• Protecting Tax Reductions. A major debate will center on scheduled tax cuts set to take effect automatically. Gov. Josh Stein and some lawmakers want to pause or repeal them to fund priorities like teacher and state employee raises. NFIB and other business groups argue the cuts are critical to keeping North Carolina competitive.
• Regulatory Relief. Small businesses often lack the resources to navigate complex rules. NFIB supports a proposal that would waive fines for first-time violations, emphasizing education and compliance over punishment.
• “Right to Repair.” NFIB is tracking legislation that would give independent repair shops access to parts and diagnostic tools. Supporters say this would lower costs for businesses that rely on equipment, from farm machinery to electronics.
• Disaster Relief Funding. After Hurricane Helene in late 2024, lawmakers are considering a permanent state fund for low-interest disaster loans. The goal is to help small businesses reopen faster instead of waiting for federal aid.

“Our members look forward to working with lawmakers this session to ensure they support legislation that helps small businesses grow, create jobs, and serve their communities,” Thompson said.