AN ACT to provide funding for increased administrative costs in the medicaid program due to federal changes.

The General Assembly of North Carolina enacts:

SECTION 1.  There is appropriated from the General Fund to the Department of Health and Human Services (DHHS) the sum of six million five hundred thousand dollars ($6,500,000) in nonrecurring funds for the 2025‑2026 fiscal year. These funds shall be deposited in the Health Advancement Receipts Special Fund under G.S. 143C‑9‑10 and shall be used for administrative costs as allowed under G.S. 108A‑147.13(a)(2). DHHS shall use these funds to provide funding to county departments of social services to support the counties with administrative costs. Notwithstanding the limitations on funding sources contained in G.S. 108A‑54.3B, the use of these funds shall not require the Secretary of the Department of Health and Human Services to complete the requirements of G.S. 108A‑54.3B(d).

SECTION 2.  This act is retroactively effective July 1, 2025.