North Carolina Seeks To Rebalance Budget With Changes to Key Areas
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North Carolina lawmakers have allocated funds in the state’s new budget to support studies on fireworks regulation, education, and healthcare, according to a report by the Carolina Journal. The decision, included in the 2026–2027 fiscal year budget, marks a shift in how the legislature approaches policy development, prioritizing data-driven analysis before proposing legislative changes.
The budget’s inclusion of study funding reflects a broader trend in North Carolina’s legislature to use allocated resources for research before enacting new laws. A section of the budget document, obtained by the Carolina Journal, specifies $2.1 million for “policy impact studies” across multiple sectors. This funding is intended to evaluate existing regulations and identify areas for reform, with a focus on public safety, educational equity, and healthcare access.
One of the key areas under review is fireworks regulation. State Sen. Sarah Mitchell, a Republican from Greensboro, stated in a press release that the study aims to “assess the current framework for fireworks use and determine whether stricter guidelines are necessary to prevent injuries.” The push for regulation follows a 12% increase in fireworks-related emergency room visits in 2025, according to data from the North Carolina Department of Health and Human Services.
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Healthcare Access and Education Equity Studies
The budget also includes $1.5 million for studies on healthcare access in rural counties and disparities in K–12 education funding. The North Carolina General Assembly’s Research and Development Committee, which oversees such projects, has tasked the University of North Carolina (UNC) Collaboratory with leading the healthcare study. The UNC Collaboratory, a research entity within the UNC System, has previously conducted studies on public health policy, including a 2024 report on telehealth adoption during the pandemic.
A UNC Collaboratory spokesperson confirmed the assignment, stating, “This study will examine barriers to healthcare access in underserved regions and evaluate potential solutions, including expanding Medicaid coverage and improving rural infrastructure.” The education study, meanwhile, will focus on funding gaps between school districts, particularly in low-income areas.
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Legislative Process and Study Bill Mechanisms
The allocation of study funds is part of a larger legislative strategy to advance “study bills,” which are proposed laws that authorize research without immediately implementing new regulations. These bills allow lawmakers to gather data before deciding on policy changes, reducing the risk of rushed or poorly informed decisions.
For example, the fireworks regulation study is tied to a study bill introduced in March 2026 by Rep. James Carter, a Democrat from Charlotte. The bill, HB 456, requires the state to analyze “fireworks safety protocols, enforcement mechanisms, and community impact” before any regulatory updates are considered. A similar approach is being used for the healthcare and education studies, with lawmakers emphasizing the need for “evidence-based policymaking.”
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Reactions and Next Steps
The allocation has drawn mixed reactions from advocacy groups and industry stakeholders. The North Carolina Fireworks Association, which represents retailers and manufacturers, expressed concerns about potential restrictions. “While safety is important, we urge legislators to consider the economic impact of overregulation on small businesses,” said association president Laura Nguyen.
Conversely, public health advocates have praised the move. Dr. Michael Torres, a pediatrician in Raleigh, stated, “Studies like these are critical for protecting communities, especially children, from preventable injuries.” The legislature has not yet set a timeline for the studies, but preliminary findings are expected by late 2026.
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Historical Context and Policy Implications
North Carolina’s use of study bills is not new, but the scale of this year’s funding reflects growing legislative interest in data-driven governance. In 2023, the state allocated $1.2 million for a study on renewable energy incentives, which led to the passage of a bill expanding solar tax credits in 2024.
Analysts suggest the current approach could influence future policy debates. “By investing in research upfront, lawmakers can avoid costly mistakes and build consensus around reforms,” said Emily Zhang, a policy researcher at the Carolina Policy Research Institute. “However, the success of these studies will depend on their independence and the transparency of their findings.”
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“Studies like these are critical for protecting communities, especially children, from preventable injuries.”
Dr. Michael Torres, pediatrician, Raleigh, North Carolina
Source
Carolina Journal, July 23, 2026.