NC GOP leaders outline budget deal, teacher raises

May 13, 2026

Summary

North Carolina Republican leaders said they reached a budget framework with teacher raises, tax changes, and proposed constitutional amendments.

Why this matters

The agreement could end North Carolina’s budget stalemate and determine pay raises, tax rates, and ballot measures affecting state and local finances. It also sets up the next phase of debate before a final budget is approved.

Republican leaders in the North Carolina House and Senate said Tuesday they had reached a framework to resolve the tax and spending disputes that have delayed a new state budget for more than a year.

House Speaker Destin Hall and Senate leader Phil Berger said the plan would give teachers average raises of 8%, with starting pay set at $48,000 before local supplements. Hall said new teachers would be the highest paid in the South when supplements are included.

State employees would receive average raises of 3%, and teachers and state employees would also get bonuses tied to salary. Law enforcement officers and prison correctional officers would receive minimum raises of 13%.

The increases would begin with the budget year starting July 1 and would not be retroactive.

“There’s still a lot that will need to be decided and discussed between the two chambers,” Berger said. “This agreement sets out a good framework for us to move forward.”

Under the agreement, current personal income tax triggers would be repealed for now and replaced with a new schedule. The current rate of 3.99% would drop to 3.49% for tax years 2027-2029, 3.24% for 2030-2032, and 2.99% for 2033-2034. After 2034, two additional reductions of 0.25% each could occur if new revenue triggers are met. The corporate income tax phaseout would continue, with the rate reaching zero in 2030.

The agreement also would place constitutional amendments on the November ballot to cap the state income tax at 3.5% and limit local property tax increases. Voters approved a constitutional amendment in 2018 lowering the maximum personal income tax rate from 10% to 7%.

More top news

Middle East

Wright: Iran weeks from weapons-grade uranium

Energy Secretary Chris Wright told senators Iran was weeks away from enriching uranium to weapons-grade levels.

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Energy Secretary Chris Wright told the Senate Armed Services Committee on Wednesday that Iran was “weeks, a small number of weeks, away to enrich that to weapons-grade uranium.” He added, “There’s still a weaponization process that happens after that, but they’re quite close.”

Wright testified during a hearing on the Energy Department’s atomic energy defense activities and a National Nuclear Security Administration budget request. Sen. Richard Blumenthal, D-Conn., asked about Iran’s uranium stockpile, how quickly it could be enriched to weapons-grade levels, and whether stopping the threat would require addressing all of Iran’s stockpiles.

Wright said Iran had uranium enriched up to 60% and “a lot of” uranium enriched to 20%, calling that level “very concerning.” Enrichment to about 90% is generally considered weapons-grade, but producing weapons-grade uranium is not the same as building a usable nuclear weapon.

Asked whether President Donald Trump would have to go after all of Iran’s uranium stockpiles to stop enrichment, Wright said, “I think that’s the wise strategy.” He added, “Ultimately, the goal is to prevent future enrichment of uranium as well. Yes, to have a safe world, we need to end their nuclear program.”

The International Atomic Energy Agency said in February that, based on information Iran provided on June 12, 2025, previous verification work, and operating records, it estimated Iran’s enriched uranium stockpile at 9,874.9 kilograms as of June 13, 2025. That included 184.1 kilograms enriched up to 20% and 440.9 kilograms enriched up to 60%.

But the agency said it could not provide current information on the size, composition, or whereabouts of Iran’s enriched uranium stockpile because it lacked access to Iran’s four declared enrichment facilities. It also said it could not determine whether Iran had suspended enrichment-related activities.

Reuters reported Tuesday that the fate of about 400 kilograms of uranium enriched to 60% remained unclear, and that U.S. intelligence assessments suggested Iran’s nuclear program might not be significantly impeded unless that stockpile was removed or destroyed.

Vice President JD Vance said Wednesday that talks with Iran were making progress, Reuters reported, while the administration’s central test remained whether Tehran could be prevented from obtaining a nuclear weapon.
World

Trump says Xi agreed to buy soybeans, energy, jets

Trump said Xi agreed in Beijing to buy U.S. soybeans, energy products, and 200 Boeing 737 jets.

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President Trump said Thursday that Chinese President Xi Jinping agreed during their meeting in Beijing to buy U.S. soybeans, energy and Boeing jets.

According to Fox News, Trump told host Sean Hannity that Xi also committed to helping the United States with Iran and agreed to buy U.S. oil, liquefied natural gas, and other energy products. Trump said Xi also agreed that China would purchase 200 Boeing 737 jets.

Boeing had previously been negotiating a deal to sell 500 737 Max jets to China. Boeing CEO Kelly Ortberg was in Beijing with Trump.

Trump and Xi met for 2 hours and 15 minutes Thursday, according to the White House press pool.

In a readout of the meeting, the White House said the leaders discussed business, trade, the Iran war, and the Strait of Hormuz.

“The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy,” a White House official said.

“President Xi also made clear China’s opposition to the militarization of the Strait and any effort to charge a toll for its use, and he expressed interest in purchasing more American oil to reduce China’s dependence on the Strait in the future,” the official continued. “Both countries agreed that Iran can never have a nuclear weapon.”
World

Rubio: U.S., China oppose Hormuz militarization

Chinese purchases account for about 90% of Iran’s exported oil, according to the U.S.-China Economic and Security Review Commission.

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Secretary of State Marco Rubio said Thursday that the United States and China agreed the Strait of Hormuz should not be “militarized,” as Iran kept the waterway closed despite a ceasefire in its war with the U.S. and Israel.

Rubio, who traveled with President Donald Trump for a meeting with Chinese President Xi Jinping, told NBC News the United States had not asked China for help with Iran. Rubio has been under Chinese sanctions since 2020.

“The Chinese side said they are not in favor of militarizing the Straits of Hormuz, and they’re not in favor of a tolling system, and that’s our position,” Rubio told NBC News’ Tom Llamas in Beijing. “We will never support an Iranian tolling system in the Straits of Hormuz, nor do we think they have a right to put mines in international waters.”

Rubio also said China supported preventing Iran from developing or acquiring a nuclear weapon. He said the difference between China’s response and the U.S. military response was that “we’re actually trying to do something about it.”

He cited the U.S. blockade on Iranian shipping through the waterway “as a direct result of what they’ve done.”

Rubio said energy prices would fall after the strait reopened, with a “dramatic reduction” over time, “because all that pent-up oil that’s being held hostage by Iran — once that reaches the marketplace, it will have a very positive impact.”

He also defended Trump’s comment that he does not “think about Americans’ financial situations” when negotiating with Iran, after Llamas asked whether the remark sounded “out of touch.”

“No, because I think what the president is making clear is that we’re not going to let Iran use that as leverage,” Rubio said. “I think what the president is making clear is if the Iranians think that they are going to use our domestic politics to pressure him into a bad deal, that’s not going to happen. We’ve taken extraordinary measures to keep gas prices lower than they are in other parts of the world.”

Rubio previously told Fox News’ Sean Hannity that Trump and other administration officials would work to persuade Xi to take an “active role” in negotiations to end the war with Iran, which has also affected shipping to China, the world’s largest buyer of Iranian energy.
World

Ship seized near UAE, cargo vessel sinks off Oman

There were no immediate claims of responsibility in either case.

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A ship anchored off the United Arab Emirates was seized and taken toward Iran, and an Indian-flagged cargo ship was attacked and sank off Oman, authorities said Thursday, in a renewed escalation near the Strait of Hormuz.

The British military said the seized vessel was taken by unauthorized personnel while anchored 38 nautical miles northeast of Fujairah, a UAE port near the Strait of Hormuz, and was heading toward Iranian waters. The United Kingdom Maritime Trade Operations center did not identify the ship and said it was investigating.

Indian authorities said the cargo ship Haji Ali sank after an attack sparked a fire aboard the vessel Wednesday as it traveled from Somalia to Sharjah, another UAE port. Mukesh Mangal, a senior official in India’s shipping ministry, said all 14 Indian crew members were rescued by Oman’s coast guard and were safe.

India’s foreign ministry called the attack “unacceptable” and condemned continued attacks on commercial shipping and civilian mariners, but it did not identify who carried it out.

The incidents came as Iranian officials repeated claims over the waterway. Iran’s semiofficial Fars news agency, citing an informed source, reported that Iran would not resume talks with the United States unless Washington met five conditions, including paying reparations for the war and accepting Iran’s sovereignty over the Strait of Hormuz.

Iran’s senior vice president, Mohammadreza Aref, said Thursday that the strait belongs to Iran and that Tehran would not give it up “at any price,” state TV reported. “It has always been our property,” Aref said.
Business

Cisco to cut nearly 4,000 jobs, boost AI spending

Cloudflare and General Motors have both cut jobs in recent days despite reporting strong financial results.

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Cisco said it was cutting fewer than 4,000 jobs, or about 5% of its workforce, after reporting better-than-expected profit and revenue in its fiscal third quarter.

The networking equipment company said it was reducing headcount to change its “cost structure” and invest in artificial intelligence and cybersecurity.

Cisco’s move follows layoffs at other tech companies that have pointed to AI spending as a priority.

Cisco also said it planned to invest more in cybersecurity as it continued to address security vulnerabilities in its routers and firewalls that allowed hackers to access the networks of corporate customers, including the U.S. government. The company also disclosed a data breach last year that affected customers’ personal information.

In a blog post published Wednesday, Chief Executive Chuck Robbins highlighted the company’s “record revenue” and “double-digit growth,” while saying Cisco was making strategic investments “in our employees’ use of AI across the company.”

According to public filings, Robbins was slated to earn more than $52 million in executive compensation during 2025.

This was Cisco’s latest round of job cuts in recent years. The company laid off thousands of employees in two rounds in 2024 and cut 150 jobs in 2025.
Military & National Security

Poland plays down canceled U.S. Army brigade move

The canceled 1st Cavalry deployment would have sent nearly 4,000 troops to Poland and other areas on NATO’s eastern flank.

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Polish defense officials said a canceled U.S. Army tank brigade rotation to Poland was tied to a broader Pentagon plan to adjust forces in Europe, not a change in policy toward Poland.

Polish Defense Minister Wladyslaw Marcin Kosiniak-Kamysz said late Thursday that halting the deployment of a Fort Hood, Texas-based brigade was linked to a U.S. decision to reduce troop levels in Germany.

“This issue does not concern Poland — it relates to the previously announced change in the presence of some U. S. Armed Forces in Europe. The rapidly developing capabilities of the Polish Armed Forces and the presence of U.S. forces in Poland strengthen NATO’s eastern flank,” he said on X.

Deputy Defense Minister Cezary Tomczyk also said the decision was connected to planned cuts elsewhere.

“This message concerns Germany. It does not concern Poland. Poland is consistently seeking to increase the presence of U. S. troops,” he said on X.

The officials did not explain the basis for those conclusions. On Wednesday, U.S. officials said the deployment of the 2nd Armored Brigade Combat Team, 1st Cavalry Division, which was already underway, had been canceled. The unit had been expected to serve a nine-month mission in Poland and other European countries.

Earlier this month, the Pentagon said it planned to withdraw 5,000 troops from Germany within six to 12 months, but it has not released details. Some media reports, citing unnamed defense officials, said the plan involved removing a brigade from Germany, which could affect the 2nd Cavalry Regiment in Vilseck.

It was not clear whether canceling the rotational brigade would count toward the Germany reductions. Although the Fort Hood unit was expected to operate mainly from Poland, armored rotations often begin in Germany and move through several countries for exercises.

Trump said last week that he might consider moving troops from Germany to Poland, praising his relationship with Polish President Karol Nawrocki.

“Poland would like that … I might do it,” Trump said.

Poland has urged a larger U.S. troop presence and said it was investing in infrastructure to support more forces. Since Russia’s full-scale invasion of Ukraine in 2022, U.S. troop levels in Poland have generally ranged from 8,000 to 10,000.

In October, the Pentagon also ended a 101st Airborne brigade rotation in Romania, part of a 2022 buildup tied to the war in Ukraine.
US Politics

House Democrats split on police resolution vote

House Republicans also promoted anti-crime bills this week, including legislation that would require the attorney general to compile a list of state and local governments with cashless bail policies.

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House Democrats divided Wednesday on a Republican-authored resolution honoring law enforcement, with 29 Democrats joining all Republicans present in support and 173 Democrats voting against it.

Rep. Zach Nunn, R-Iowa, introduced the measure, which praised the “extraordinary sacrifice” of law enforcement officers and criticized calls to defund police. House Minority Leader Hakeem Jeffries, D-N.Y., voted against it.

“We want to take that best practice of respecting law enforcement in Iowa to the nation’s capital, and I was thrilled that we got bipartisan support,” Nunn said in an interview with Fox News Digital.

Nunn said he had expected unanimous support. “I think it unfortunately puts a real spotlight on a chasm we have between those who support law and order and those who are supporting those who undermine it,” he said.

The vote came after assaults on law enforcement officers reached a 10-year high last year, according to an FBI report released Monday. The number of officers killed fell slightly between 2024 and 2025.

Some Democrats appeared to object to language in the resolution that criticized “leftist activists and progressive politicians” and said sanctuary city policies and efforts to “defund or dismantle local police departments undermine public safety and place both officers and the communities they serve at greater risk.”

The resolution also credited the Trump administration’s law-and-order policies with reducing violent crime, including what it described as the nation’s lowest homicide rate in more than a century last year.

“We are at a 125-year low for murder rates, 10-year low for drug overdoses,” Nunn told Fox News Digital. “These are things that good community policing, that our law enforcement officers are doing every day, have had a really positive impact.”
US Politics

Senate approves withholding pay during shutdowns

Senator Kennedy said the change reflected a “shared sacrifice” after federal employees went unpaid during two shutdowns since last year.

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Senators unanimously passed a resolution to withhold their pay during future government shutdowns, after recent closures left many federal workers without pay.

The measure, pushed by Sen. John Kennedy, R-La., applies only to senators. It directs the secretary of the Senate to withhold lawmakers’ pay during a shutdown and release it once the government reopens.

“Last October, we shut down the government for 43 days. That is the longest shutdown in history. And we had FBI agents, national park rangers, CDC scientists, our staff here in Congress — nobody was getting paid,” Kennedy said on the Senate floor.

“And then, three months later, after we finally got out of that 43-day shutdown, we shut down the Department of Homeland Security. It was shut down for 76 days. This is all in one year,” he continued. “We ought to hide our heads in a bag. It’s got to stop.”

The shutdowns affected travelers as Transportation Security Administration workers went unpaid during both closures.

A rank-and-file senator earns $174,000 a year, while party leaders can earn more than $193,000.

Lawmakers have proposed other responses to shutdowns. Sen. Ron Johnson, R-Wis., introduced a bill backed by federal labor unions that would ensure federal workers were paid during a shutdown. Sen. James Lankford, R-Okla., introduced legislation that would temporarily extend funding in two-week increments to avoid shutdowns.

Senate Minority Leader Chuck Schumer, D-N.Y., supported Kennedy’s resolution. Still, the measure would not take effect until after the November election cycle, meaning senators would not face withheld pay during that period.
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Netanyahu says Israel will sue New York Times

The article was based on accounts from 14 people and independent reports.

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Israel said Thursday it would pursue a defamation lawsuit against The New York Times over a column by Nicholas Kristof that detailed rape allegations by Palestinian detainees against Israeli forces.

The Prime Minister’s Office said Prime Minister Benjamin Netanyahu and Foreign Minister Gideon Saar “have instructed the initiation of a defamation lawsuit against The New York Times.” Israel had earlier called the report “blood libel.” On Thursday, it said the article contained “the most hideous and distorted lies ever published against the State of Israel in the modern press, which also received the backing of the newspaper.”

Kristof’s article, published three days earlier in the opinion section, was based on accounts from 14 Palestinian men and women. It cited a U.N. commission report presented last year that said sexual violence had become “standard operating procedures” and “a major element in the ill treatment of Palestinians” by Israel’s security apparatus. It also cited a Committee to Protect Journalists report that found nearly a third of Palestinian journalists detained by Israel reported sexual violence.

A New York Times spokesperson, Charlie Stadtlander, said Wednesday that the article was a “deeply reported piece of opinion journalism.”

He said the accounts were corroborated with other witnesses, when possible, and with people victims had confided in, including family members and lawyers. “Details were extensively fact-checked, with accounts further cross-referenced with news reporting, independent research from human-rights groups, surveys and in one case, the UN testimony,” he said on X.

Further details of the planned lawsuit were not immediately available.

Netanyahu said last year he was examining whether a country could sue The New York Times after a separate report on starvation in Gaza. On Thursday, he said the case would also serve a broader purpose. “Under my leadership, Israel will not be silent,” he wrote on X. “We will fight these lies in the court of public opinion and in the court of law.”
US Politics

Poll: GOP voters back mandatory AI security tests

National Economic Council Director Kevin Hassett said last week that the White House was considering an executive order that would require AI models to go through a process so “they’re released in the wild after they’ve been proven safe, just like a FDA drug.”

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A majority of Republican voters supported requiring artificial intelligence models to undergo independent security testing, according to a poll released Thursday.

The survey, shared first with The Hill by Americans for Responsible Innovation, found that 71% preferred a mandatory testing process. Another 17% said AI companies should voluntarily test their models for risks, while 12% said the technology should be released without prior testing.

The poll was released as the Trump administration weighed how to handle more advanced AI models, including Anthropic’s Mythos. Anthropic has said the model can identify decades-old security vulnerabilities, a capability that could help institutions and hackers find flaws more quickly.