Stein signs justice, state worker bills, eyes budget

July 7, 2026

2–3 minutes

Summary

Gov. Josh Stein signed bills on gang prosecutions, mental health evaluations, state hiring, parental leave, housing, and said budget action will come Tuesday.

Why this matters

The new laws change how North Carolina handles gang-related charges, involuntary commitment evaluations, state hiring and parental leave, and some local housing rules. Stein’s expected action on the state budget could affect a broader range of state programs and spending.

Before lawmakers left last week for a break in the session, they sent Gov. Josh Stein nearly two dozen bills, including the state budget. Stein said he planned to act on the budget Tuesday.

Stein signed several bills Monday, including measures tied to two deaths in North Carolina over the past year.

Republicans introduced Jaleeyah’s Law after 13-year-old Jaleeyah Tune was shot and killed in Goldsboro in December 2025. Her family has urged lawmakers to increase penalties for gang-related crimes.

The law lowers the threshold for charging someone with gang membership or gang activity. Rep. John Bell, R-Wayne, the bill’s primary sponsor, said it would give prosecutors and law enforcement “the tools to really go after those perpetrators and make sure that they do not hurt anyone else in this state.”

Stein also signed House Bill 1104, which changes involuntary commitment procedures under Iryna’s Law, a judicial reform package passed after the August 2025 killing of Iryna Zarutska by a person with mental illness.

The earlier law required more suspects to receive psychiatric assessments in emergency rooms. House Bill 1104 allows law enforcement to use telehealth for those assessments in jails instead. Hospital leaders had raised safety concerns about conducting the evaluations in emergency rooms.

The bill also requires studies on possible changes to the involuntary commitment process, including mobile crisis units and stronger training for examiners. Health and Human Services Secretary Dev Sangvai said, “We see far too often that mental health crises are funneled through the justice system instead of the mental health treatment system.”

Stein also signed Senate Bill 1041, which gives state employees 12 weeks of paid parental leave. Previously, employees who gave birth received eight weeks, while other state employees received four weeks.

Stein said the law was the state’s broadest overhaul of human resources rules in about 50 years. It streamlines hiring for state agencies and helps spouses of service members find state government jobs.

He also signed House Bill 162, which bars municipalities from requiring housing developers to include a minimum number of parking spaces. Stein said the measure is intended to lower housing costs and give developers more flexibility. It also allows local governments to offer incentives for stormwater controls aimed at reducing flooding.

More top news

Military & National Security

VA settlement may reopen 90,000 disability appeals

The Federal Circuit said in 2024 that about 3,000 erroneously closed appeals were then known.

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More than 90,000 veterans and surviving family members are covered by a proposed class action settlement in Freund v. Collins, a case over disability appeals that were closed in error in the Department of Veterans Affairs’ tracking system.

A federal court will decide whether to grant final approval at an Aug. 13 fairness hearing in Washington. If approved, appeals closed as far back as 1990 could be reactivated, and successful claims could receive back pay to the original filing date.

The case involves the Veterans Appeals Control and Locator System (VACOLS), which tracked appeals under the VA’s legacy system for claims initially decided before Feb. 19, 2019. Under that process, veterans had to file a substantive appeal after receiving a statement of the case. If a VA employee did not properly record that filing in VACOLS, the system could automatically close the appeal without notifying the claimant.

“To the veteran, it was silence,” Jim Fausone, managing partner of Legal Help for Veterans, told Stars and Stripes.

A 2023 VA report to Congress said 2,893 of 3,806 closed appeals reviewed required reactivation. The certified class covers appeals closed between Dec. 12, 1990, and Feb. 6, 2025.

The named petitioners were Army veteran J. Roni Freund and Mary Mathewson, the widow of Army veteran Marvin Mathewson. Both veterans had filed timely substantive appeals, according to the lawsuit, but their cases were closed. Freund and Mathewson petitioned the U.S. Court of Appeals for Veterans Claims in June 2021. The court initially dismissed the case and declined to certify a class. The VA later reactivated both appeals. The Federal Circuit reversed in August 2024, and the Veterans Court certified the class on March 18, 2026.

Under the proposed settlement, the VA would automatically review 28,258 files flagged as likely containing a timely substantive appeal and notify claimants if cases qualify for reactivation. Up to 64,599 additional claimants would receive letters and would need to request review.

The VA began sending notices in April. Claimants who receive a letter referencing Freund v. Collins, Case No. 21-4168, can seek help from class counsel John D. Niles at freundclass@carpenterchartered.com, or from a VA-accredited attorney or veterans service organization. The court said it cannot help with individual claims.
World

Iran downed 30 U.S. Reaper drones, official says

Iran said it shot down one Reaper during U.S. strikes on Tuesday and another “enemy” drone over southern Iran on Wednesday.

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Iran has downed about 30 U.S. MQ-9 Reaper drones since the war began, a U.S. official said Wednesday.

The MQ-9 Reaper entered Air Force service in 2007 and became a central aircraft in U.S. counterterrorism operations in the Middle East and other conflict zones during the wars in Iraq and Afghanistan. It was designed to operate where the United States had air dominance, an advantage that has been challenged by Iran.

The Air Force announced its final five-year Reaper purchasing contract in 2020. General Atomics shut down the production line last year after building 575 aircraft. The last batch, four drones, cost about $16 million each, according to General Atomics spokesman C. Mark Brinkley.

In May, Air Force Gen. Kenneth Wilsbach told lawmakers at a budget hearing that the Reaper had become a “most valuable player” in the war with Iran.

“We’ve made many, many strikes,” he said of the Air Force’s use of the drone. “No other platform is even close.”
World

Trump says U.S. will let Ukraine make Patriots

The meeting marked a contrast with earlier encounters between the two leaders that ended in acrimony. Trump said he believed a deal to end the war could be near.

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President Donald Trump said at a NATO summit Wednesday in Turkey that the United States will give Ukraine a license to produce Patriot air defense systems, a move Kyiv has sought as it faces continued Russian missile attacks.

“We’ll give them the right to make Patriots. We’ll show them how to do it,” Trump said. “I think they can produce them pretty quickly.”

Trump made the announcement after meeting with Ukrainian President Volodymyr Zelenskyy. Trump said the two had “actually developed a good relationship” and that the U.S. would “work on some kind of security package” for Ukraine. He also said Zelenskyy had “done an amazing job” and “been very effective” in the war.

Patriot systems are expensive, in high demand, and take time to produce. Zelenskyy has long asked for more of them, and more recently for a license allowing Ukraine to manufacture them.

The summit also highlighted tensions within NATO as Trump pressed allies to raise defense spending and take greater responsibility for European security while the U.S. reduces its troop presence on the continent.

Ahead of the meeting, Trump again said the U.S. should control Greenland, prompting Danish Prime Minister Mette Frederiksen to say Denmark was “ready to defend every inch of NATO including our own territory.” He also criticized Spain for not participating in the Iran campaign and renewed threats to restrict trade.

NATO Secretary-General Mark Rutte credited Trump with pushing allies to spend more on defense. NATO leaders later pledged $80 billion for Ukraine’s defense needs this year and next, citing “the long-term threat Russia poses to Euro-Atlantic security.”

Figures released by NATO on Tuesday showed Slovenia, Belgium, Spain, and the Czech Republic had struggled to meet the alliance’s previous target of spending 2% of gross domestic product on defense. At last year’s summit, allies agreed to a new target of 5% of GDP, including 3.5% on defense budgets and 1.5% on infrastructure.

Zelenskyy again called for Ukraine to join NATO, a step Russia opposes.
\top\

Trump says Iran deal is over after new strikes

The heaviest exchange since the MoU was signed on June 17 took place from Tuesday night into Wednesday.

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President Donald Trump said Wednesday that he considered a U.S.-Iran ceasefire agreement “over” after overnight exchanges of fire, while warning the U.S. could carry out more strikes.

Speaking at a NATO summit in Turkey, Trump said the U.S. had “hit them very hard last night” and would “probably hit them hard again tonight.” He accused Iran of violating a June memorandum of understanding, or MoU, that called for an end to the conflict.

“I think it’s over. I don’t want to deal with them any more, they’re scum… they’re led by sick people and they’re vicious, violent people,” Trump said. He added: “We make a deal… They [Iran] go outside, talk to the press, they say ‘we never even talked about it’. There’s something wrong with them. They’re cuckoo. As far as I’m concerned, it’s over.”

Iranian Foreign Minister Abbas Araghchi responded on X: “We do not answer vulgarity with vulgarity, but with action: fearlessly and with great valour.” A senior adviser to Supreme Leader Ali Akbar Velayati said any new U.S. strikes would bring an “immediate response.”

U.S. Central Command said Tuesday it carried out “powerful” strikes after attacks on three tankers in the Strait of Hormuz. Iranian state media said eight army members were killed in U.S. strikes in Bandar Abbas and Bushehr. The U.S. also said it had ended its temporary suspension of sanctions on Iranian oil sales.

Iran said Wednesday that it targeted U.S. military sites in Bahrain and Kuwait in retaliation. More than 20 U.S. Navy warships remained on patrol across Middle East waters, Central Command said.

Iranian parliamentary speaker Mohammad Bagher Ghalibaf, who is also the country’s chief negotiator with the U.S., accused Washington of violating the MoU through sanctions and attacks in southern Iran. NATO Secretary-General Mark Rutte said the U.S. strikes were “absolutely necessary” and that Iran was “basically violating the ceasefire.”

Trump later said he did not expect the war to resume fully and that “anything that happens will be over quickly.” Asked about further negotiations, he said, “I don’t care” and called more talks “a waste of time,” though he said U.S. negotiators could continue “if they want.”
World Politics

Trump says Syria will be removed from terror list

The United States designated Syria a state sponsor of terrorism in 1979, the longest such designation for any country on the list.

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President Donald Trump said Wednesday that he would remove Syria from the State Department’s list of state sponsors of terrorism.

Sitting next to Syrian President Ahmed al-Sharaa at the NATO summit in Turkey, Trump said he supported the move when asked about it.

“He’s done a great job. Maybe he would have brought that up. That’s a good question. Yeah, any problems with that? I think we should. Yeah, I will,” Trump said of al-Sharaa.

Trump also praised al-Sharaa during the meeting. “He’s done a really fantastic job as president. He’s unified the country in a very short period of time,” Trump said, calling him a “strong person” who is “respected by everybody.”

Al-Sharaa once led an al-Qaida affiliate in Syria, had a $10 million bounty on his head, and served time in Abu Ghraib prison in Iraq. In late 2024, he led a coalition of Islamist rebel factions that toppled former Syrian President Bashar al-Assad.

Syria was designated a state sponsor of terrorism because of the former al-Assad government’s support for designated terrorist groups.

U.S. officials have said several steps are needed before the designation can be lifted. Earlier this month, three bipartisan lawmakers wrote to Trump urging Syria’s removal from the list, while saying al-Sharaa’s government still needed to follow through on equal representation for women and minority groups and on regional security.

In May 2025, Trump announced he would lift sanctions on Syria to establish a new relationship between the two countries.

Last November, the United Nations Security Council adopted a U.S.-led resolution lifting sanctions on al-Sharaa so he could travel to the U.S. to meet Trump in the Oval Office, in the first official U.S. visit by a Syrian president. Congress later approved repealing comprehensive sanctions under the Caesar Syrian Civilian Protection Act, and Trump signed the measure into law in December.

That repeal allowed Syria to begin transacting with regional and U.S. businesses, but the terrorism designation still bars access to significant U.S. foreign assistance. Removing it could expand investment in sectors including oil, banking, technology, and real estate.
Finance & Markets

U.S. stock futures rise after second day of Iran strikes

Investors were assessing the June sell-off in chip stocks that pressured the artificial intelligence trade.

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U.S. stock futures rose early Thursday after the United States struck Iran for a second straight day, hours after President Donald Trump said a ceasefire between the countries was “over.”

Futures tied to the Dow Jones Industrial Average and the S&P 500 each rose 0.1%. Nasdaq-100 futures gained 0.3%.

The U.S. military said in a social media post Wednesday evening that it had “started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz.”

The latest attacks followed U.S. strikes on Iran on Tuesday, which the military said were a response to Tehran’s actions against ships in the Strait of Hormuz.

Earlier Wednesday, Trump said the ceasefire between the countries was “over” and raised the possibility of further military action, including a return to a U.S. blockade of the Strait of Hormuz. Stocks closed mixed after cutting earlier gains following the comments, while oil prices rose.
Business

BofA extends $520 million credit line to OpenAI

The bank is also seeking advisory roles on the planned IPOs of OpenAI and Anthropic.

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Bank of America extended a $520 million credit line to OpenAI, its first loan to the artificial intelligence company as it prepares for an initial public offering, a person familiar with the matter told Reuters on Wednesday.

The loan makes Bank of America one of OpenAI’s largest lenders and supports its position in AI-related capital markets financing, the source said, speaking on condition of anonymity because the information is confidential.

Bank of America has helped raise nearly $500 billion in capital for AI-related companies since 2025, representing 60% of that fundraising across investment-grade debt, leveraged finance, and equity capital markets, according to internal data seen by Reuters.

The move followed Bank of America’s role in SpaceX’s IPO, where it was a joint bookrunner and led the U.S. retail distribution effort. SpaceX, led by Elon Musk, debuted in June at a valuation of more than $2 trillion after completing what Reuters described as the world’s largest IPO.

OpenAI confidentially filed for a U.S. IPO last month. The ChatGPT maker is reportedly seeking a valuation of more than $1 trillion in a listing that could come as soon as this year.

Large IPOs can generate hundreds of millions of dollars in fees for Wall Street banks and can lead to additional business.

OpenAI was founded in 2015 as a research-focused nonprofit and created a for-profit arm four years later to help fund the costs of developing AI systems.
US Politics

Elaine Chao Addresses China Trip, McConnell Health

The trip drew criticism from Rep. Marjorie Taylor Greene, who accused Chao of being a “possible Communist spy.”

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Elaine Chao, wife of Sen. Mitch McConnell, addressed questions about her husband’s health and her recent trip to China after McConnell was hospitalized.

In a July 7 statement, a spokesperson for Chao said, “The secretary was on a long-planned trip in China to support her family’s philanthropic endeavors. During the trip, she met with a number of people, including the US ambassador. The Senator’s health did not warrant an immediate return to the US.” Chao, who previously served as secretary of labor under George W. Bush and secretary of transportation in President Donald Trump’s first administration, does not currently hold a government role.

Chao traveled to Beijing on June 17, three days after McConnell’s office confirmed he had been hospitalized for an undisclosed condition. People reported that she met with Chinese Vice President Han Zheng.

Chao has returned to the United States, though her spokesperson declined to say when she arrived.

McConnell, whose Senate term is scheduled to end in January 2027, has had several health issues in recent years. They included a March 2023 fall that resulted in a concussion and broken ribs. He also froze mid-sentence during a later news conference, and reports said he suffered two additional falls earlier that year.
US

White House touts gas station selling $3.47 fuel

A spokesperson said the Trump administration was not involved with the company and was not subsidizing the stations. The company can offer lower prices by reducing its profit margins.

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The White House said Tuesday that the first “Freedom Fuel” gas station opened in Philadelphia and was selling gasoline for $3.47 a gallon, below the national average.

In a post on X, the White House said the first Freedom Fuel location “has LANDED in Philadelphia.” It said the $3.47 price referenced President Donald Trump, who is serving as the nation’s 47th president in his second term.

“President Trump is leading the charge to lower gas prices this summer — putting more money in your pocket,” the White House said.

A White House spokesperson told CBS News on Wednesday that the Freedom Fuel Network is a private company that owns 25 gas stations in New Jersey and Pennsylvania.

Oil and fuel prices rose after the U.S. and Israel attacked Iran on Feb. 28. On Wednesday, the national average price for a gallon of regular gas was $3.80, down from a recent peak of $4.56 in mid-May, according to AAA. Gasoline averaged $2.98 a gallon nationwide just before the conflict.

Diesel, which is widely used in trucking and affects shipping costs, was $4.77 a gallon on Wednesday, compared with $3.76 before the Iran war.

The White House post included video of customers thanking Trump for lower fuel costs.

“Thanks, Trump, for saving me some money,” one customer in Philadelphia said. The average gas price in Pennsylvania was $3.98 a gallon.
North Carolina

Stein vetoes homeless camp bill, signs 12 N.C. laws

Stein also signed bills on wildlife rules, skiing liability, property tax changes, state crime victim compensation and emergency response, and personnel and administrative changes requested by state agencies.

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North Carolina Gov. Josh Stein on Wednesday vetoed House Bill 437, which would have allowed municipalities to regulate homeless encampments by moving people to designated spaces. Stein called the measure “poorly constructed” and said it would make it harder for homeless people to regain stability.

The bill would have banned “unauthorized sleeping” in public spaces and allowed local governments to direct homeless people to designated areas not near homes, businesses, or schools. Those governments would have had to provide security, toilets, and water.

“We all want people experiencing homelessness to get back on their feet and live in safe, affordable housing,” Stein said in a statement. “Yet, this poorly constructed bill makes that goal harder and creates another significant unfunded mandate for local governments.”

A spokesperson for House Speaker Destin Hall said the chamber plans to try to override the veto. Rep. Brian Biggs, R-Randolph, a co-sponsor, said Stein’s veto could jeopardize federal funding tied to efforts to move people from encampments into housing and services.

The bill also would have increased penalties for dealing drugs near homeless aid centers and created criminal liability for workers at those centers if someone was caught selling or possessing large amounts of drugs there. Supporters said that would push aid groups to keep drug dealers away; critics said it could discourage charities from operating.

Stein said, “The bill also fundamentally misunderstands how people suffering from addiction get healthy.” He urged lawmakers to pursue other measures addressing homelessness, drug trafficking, behavioral health, and affordable housing.

Stein also signed 12 bills into law. House Bill 133 bars people or companies affiliated with hostile foreign governments from buying land within 50 miles of military installations or farmland anywhere in the state. Under current U.S. policy, the restriction applies to affiliations with governments including China, Russia, Iran, and Cuba.

Other signed measures included House Bill 1094, making changes Stein said would improve Department of Motor Vehicles efficiency; House Bill 372, limiting local restrictions on some home-based businesses; House Bill 920, adding protections against cryptocurrency scams; Senate Bill 355, including prison system changes and driver’s license restoration courses for reentry; and Senate Bill 857, making licensing and regulatory changes for funeral businesses.