North Carolina gas tax suspended: Stein signs law to lower prices at the pump :: WRAL.com

North Carolina Gov. Josh Stein signed legislation Friday suspending the state’s tax on gasoline and diesel fuel — a law aimed at lowering prices that have remained high since President Donald Trump launched an attack on Iran earlier this year.

The measure suspends the 41-cent-a-gallon gas tax through Nov. 30 and is expected to cost the state more than $350 million in money that typically goes to the state Department of Transportation for road projects. The legislation maintains the DOT’s budget in full by shifting money from the state’s savings of about $11 billion.

“Grocery bills are going up. Electric bills are going up, health care bills are going up, and thanks to the Trump administration’s disastrous war of choice against Iran, gas prices are skyrocketing,” Stein said. “So when we have an opportunity to reduce costs for families, we must take it. »

Stein’s decision comes days after Republican leaders in the North Carolina General Assembly introduced the bill, which passed with overwhelming bipartisan support. State lawmakers had taken a break from legislative activity when Republican legislative leaders announced a special session Oct. 3 to address voters’ concerns about high gas prices: “They need real relief, and they need it now,” Senate Leader Phil Berger wrote on social media.

House Speaker Destin Hall, R-Caldwell, said the gas tax suspension was possible because the Republican-controlled General Assembly had passed conservative budget spending plans over the years.

“Years of responsible budgeting have allowed North Carolina to provide meaningful assistance when families need it most, and suspending fuel taxes is another way House Republicans are making our state more affordable for everyone,” Hall said in a statement after Stein signed the bill.

The law takes effect Saturday, but motorists likely won’t see big price drops immediately. Gas stations still have fuel on hand that they have paid taxes on, so it could be days or weeks before stations buy the new, cheaper fuel that would be available thanks to the tax breaks.

While the law has bipartisan support, Democrats have accused Republicans of suspending the gas tax not only to save North Carolinians money, but also to save Republican re-election efforts. Stein emphasized Friday the timing of the special legislative session and the temporary nature of the tax holiday.

“Acting four weeks before the election is not enough. This law cannot be the end of our work to reduce the cost of living,” Stein said. State lawmakers should pass legislation to make housing more affordable and improve access to affordable food and health care, he said.

“These are real issues that deserve a real response from our elected officials, not just when a pollster shows them very bad results regarding the upcoming election,” Stein said.

All 170 seats in the North Carolina General Assembly are up for election, and political analysts say the midterm elections offer Democrats the best chance to gain power in years. Republicans have currently — and for most of the last decade — held enough seats to easily implement many of their proposals, even over the objections of Democratic governors.

Republicans have expressed concern that they are losing influence in the Legislature and economic factors are likely to drag them down in the midterms, said Michael Bitzer, a political scientist at Catawba College.

Trump’s approval rating has fallen to 43% among likely voters in North Carolina, according to a poll released late last month by High Point University. Meanwhile, gas prices remained high during the election campaign, increasing the costs of all kinds of goods. Polls showed affordability was a top concern among voters.

Suspending the gas tax could help some outgoing lawmakers on the campaign trail, but it won’t be a silver bullet for Republicans, Bitzer said. Many voters are motivated by factors beyond the legislature’s control, he said. Plus, voting is already underway: Election officials mailed absentee ballots to voters last month, and in-person early voting begins October 15.

The incumbent candidates who will benefit most from the gas tax suspension are those in close races and who have enough money to tout their vote on the airwaves, Bitzer said.

“There are a number of state House and Senate districts where this could perhaps help soften the cushion of a swing toward Democrats, away from Republicans,” he said. “If you can move the needle 1, 2, 3 percentage points: that could save some districts. »

When Berger announced details of the bill Wednesday, he shared the microphone with Senators Buck Newton, Lisa Barnes and Michael Lee, all three facing tough re-election challenges.

Senate Majority Leader Lee faces Jessica Bichler for her New Hanover County seat. Newton faces Democrat Jess Rivera in a district that includes Greene, Wayne and Wilson counties. Barnes is seeking re-election against former lawmaker James Gailliard in a district that spans Franklin, Nash and Vance counties.

On Friday, Stein tried to use the attention to his party’s advantage. He signed the bill at the farm of Jamie Ager, a Democrat running for Congress in North Carolina’s 11th District in western North Carolina. Ager’s Republican opponent: State Rep. Jennifer Balkcom, who voted for the bill Wednesday.

Ager and Balkcom are vying for the seat currently held by U.S. Rep. Chuck Edwards, who is not seeking re-election. Edwards launched a reelection campaign earlier this year but then dropped out in August after the House Ethics Committee said it found reason to believe he violated House rules on sexual harassment and hostile workplaces. The House then censured Edwards, who disputed the allegations.

Ager is a hog and cattle rancher who has positioned himself as a moderate while advocating for increased federal aid for victims of Hurricane Helene, which ravaged the district in September 2024.

Balkcom is a mortgage loan officer who has quickly risen through the legislative ranks since winning her seat in the House of Representatives in 2022. Balkcom led the GOP campaign in 2023 to ban transgender girls and women from competing in girls’ sports in middle school, high school and college athletics in North Carolina. And earlier this year, Balkcom led an effort to block foreign countries from purchasing certain land in North Carolina.

Trump won the district by 9 percentage points in 2024. The Cook Political Report, a Virginia-based nonpartisan group that studies the competitiveness of elections, predicted earlier this year that the GOP candidate was likely to win but that the race could become competitive under certain conditions. In late September, Cook declared that the Ager-Balkcom race was now a draw.

Ager was the first speaker at Stein’s bill signing event. He praised lawmakers for uniting behind the gas tax suspension and praised Stein for relaxing state laws on red-dyed diesel, which is typically reserved for off-road agricultural or construction equipment. Stein last week ordered the state Department of Revenue to suspend enforcement of penalties for using red-tinted diesel on highways until Dec. 31. Then on Monday, Trump signed an executive order easing federal restrictions on the use of red-tinted diesel on highways.

“We are very grateful to have leaders willing to come together and develop policy that helps farmers,” Ager said.

Ager continued: “We’re doing big, bold things in America, and one of those things that we desperately need in this country is to bring people together to agree to solve problems to help people live better lives and improve their lives. »

Balkcom criticized Stein for including Ager in the bill signing because he was not involved in approving the bill.

“The precinct signing of liberal Jamie Ager is laughable and insulting to the citizens of Western North Carolina,” Balkcom told WRAL in a statement. “Today’s charade proves that Jamie Ager is no different than any other Washington DC liberal: He will say anything to get elected, take credit for things he didn’t do, and expect voters to accept him.”

Democratic Rep. Lindsey Prather of Buncombe County also spoke at the bill signing. Prather is among the most vulnerable incumbent Democrats, as voters in his district supported Trump by about 3 percentage points in the 2024 election. Prather is running for re-election against Republican Anthony Penland.