North Carolina bill proposes escrow of lawmakers’ salaries if budget deadline is missed

State Sen. Lisa Grafstein has introduced new legislation that would incentivize prompt passage of the state budget by escrowing state lawmakers’ paychecks during budget stalemates, according to the North Carolina State Senate.

Known officially as SB 806, the bill—titled the ‘No Budget, No Pay Act’—was entered on April 21 during the 2025 regular session.

Below, we’ve summarized its main components based on the original filing, in some cases rephrasing or clarifying its language for readability.

Under SB 806, all compensation for members of the North Carolina General Assembly would be withheld and held in escrow beginning July 1, 2026, should a new operations budget for fiscal year 2026-27 remain unratified as of midnight June 30, 2026. Lawmakers would receive the withheld wages once a spending plan is adopted or the 2025 legislative session adjourns sine die. To assist implementation, the legislation sets aside $10,000 in nonrecurring General Fund appropriations. The proposal is designed to increase pressure on legislators to reach agreement on the state budget. If enacted, the measure would take immediate effect.

Among its three sponsors, Woodson Bradley introduced 76 bills during the 2025 regular session, the most of any listed sponsor.

Lawmaking in North Carolina involves a series of steps before a bill becomes law. After filing, a bill is assigned to a relevant committee. Each chamber—House and Senate—considers the measure in three readings. Any amendments require both bodies to approve an identical text. Once passed by both, the measure is sent to the governor, who has 10 days (or 30 when the legislature is out of session) to sign it, veto it, or permit it to become law without a signature.

Grafstein earned her BA from Northwestern University in 1988 and her JD from University of North Carolina School of Law in 1995.

Grafstein, a Democrat, began serving in the North Carolina State Senate in 2023, representing the 13th Senate district after succeeding Danny Earl Britt.