North Carolina bill seeks to escrow legislators’ salaries during budget gridlock

State Sen. Terence Everitt has put forward a measure intended to prompt timely state budget approval by requiring lawmakers’ compensation be withheld if a budget remains unresolved, according to the North Carolina State Senate.

Labeled SB 806 and introduced April 21 in the 2025 regular session, the bill carries the short title: ‘No Budget, No Pay Act.’

The following summary reflects our analysis based on the actual bill text and is provided for clarification of its requirements.

Essentially, the proposal mandates that all pay and allowances for North Carolina General Assembly members be escrowed beginning July 1, 2026, if a state operations budget for the 2026-27 fiscal year has not been ratified by midnight, June 30, 2026. The funds would be distributed when a budget is ratified or when the 2025 General Assembly adjourns sine die. An appropriation of $10,000 in nonrecurring General Fund money is included for implementation expenses. The legislation is designed to add urgency for the timely passage of the state budget. The act becomes effective upon becoming law.

Among the measure’s three sponsors, Woodson Bradley introduced the highest number of bills (76) in the 2025 regular session.

Legislation in North Carolina must navigate a multi-step approval process. A proposal is introduced by a legislator through filing a bill, which is then referred to a committee for evaluation. The proposed law is subject to three readings in both legislative chambers. If amendments are made in one chamber after passage by the other, a final agreed version must be reached. Once the same language is approved by both chambers, the bill goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or allow it to become law without signature.

Everitt earned a BA from Rutgers University in 1997, followed by a JD from Columbus School of Law in 2001.

Everitt, a Democrat, won election in 2025 to represent North Carolina’s 18th Senate district, succeeding Mary Wills Bode.