North Carolina at a Crossroads — Entering 2026 with Opportunity, Tension, and Unfinished Work

As North Carolina closes out a consequential 2025, the state moves into 2026 navigating a complex convergence of political, social, economic, and institutional pressures. Beneath the surface of a growing economy and vibrant communities lies a deeper story: one of systems under strain, households navigating rising costs, and an electorate confronting trust-shaking challenges.

The year’s events reveal a state at a pivotal moment, where policy decisions made now will reverberate through civic life, workforce readiness, and the health of families statewide.

Few issues captured public attention in 2025 as sharply as voting access and election legitimacy. Nearly 100,000 voters were instructed to add driver’s‐license or Social Security information to their voter files—an administrative hurdle that carries the real risk of ballots being partially counted or moved to provisional status. The controversy has deepened as litigation continues around barriers affecting younger voters, people with name changes, and voters with incomplete registration records.

Meanwhile, political tension heightened with events such as the contested state Supreme Court race—where tens of thousands of ballots were challenged months after they were cast—and scrutiny within the State Board of Elections itself, including questions of partisanship and leadership instability.

For many residents, these developments have magnified the perception of voter suppression and eroded confidence in democratic processes. The fear is not only disenfranchisement but also the chilling effect on civic participation. The state enters 2026 with a politically polarized electorate and a governance infrastructure facing significant public skepticism.

Parallel to the political landscape, social pressures intensified across the state. Youth mental-health challenges—especially in rural regions—have reached alarming levels, stressing schools, families, and community agencies. Rising economic insecurity and social isolation have contributed to fragmentation within communities.

Local governments continued to adapt to demographic and immigration shifts, with some cities adopting new policies to protect workers and residents navigating federal enforcement. These dynamics underscore a growing need for expanded mental-health access, family support systems, and local resilience strategies.

North Carolina’s business climate in 2025 reflected both resilience and new vulnerabilities. Small businesses grappled with rising healthcare costs, leading to the formation of programs such as Carolina HealthWorks to pool insurance risk and lower premiums. While helpful, such measures cannot fully offset the broader inflationary environment—higher wages, housing costs, and operational expenses that continue to reshape employer decisions. Industries reliant on specialized talent, including technology, advanced manufacturing and healthcare face intensified competition, especially as education and workforce challenges emerge.

Health-insurance premiums are projected to spike significantly in 2026—up to 36 percent on the individual market—driven by the expiration of enhanced federal subsidies and insurer rate increases. Families and small employers already stretched thin may face tough decisions: absorb higher costs, shift to less comprehensive plans, or drop coverage altogether. In rural communities, existing healthcare-access gaps could widen further, compounding long-standing inequities.

Education remains one of the most worrisome long-term trends. North Carolina continues to rank near the bottom nationally in per-pupil funding and lags in competitive teacher pay. Educator attrition is rising, early childhood access remains limited, and shortages in high-need subjects threaten academic quality. These challenges reach far beyond the classroom: they directly affect the future labor force, economic mobility, and the state’s ability to attract or retain employers.

While North Carolina’s overall cost of living remains slightly below the national average, the gap between living expenses and income is widening. A typical family of four now requires nearly $100,000 annually to meet basic needs—far above the state’s median household income. Housing prices continue to rise, healthcare costs are elevated, and everyday goods and services are increasingly expensive. For many families, affordability is becoming a defining constraint on opportunity, location, and stability.

The picture that emerges from 2025 is one of a state marked by opportunity but challenged by fragility. Political tensions intersect with education and economic disparities; healthcare costs collide with business sustainability; social pressures spill into schools, workplaces, and local governments. North Carolina’s progress in 2026 will depend on whether leaders, institutions, and communities can address these interconnected issues with transparency, investment, and a commitment to equitable participation.

What happens next will determine not only policy outcomes, but the kind of state North Carolina chooses to become.

Special Recognition: In Memoriam

We respectfully recognize and honor the lives and enduring legacies of two distinguished public servants who profoundly shaped North Carolina: former Governor Jim Hunt and former State Representative Wilma Sherrill.

Governor James B. “Jim” Hunt Jr., the 69th and 71st Governor of North Carolina and the longest-serving governor in the state’s history, passed away on December 18, 2025, at the age of 88. Governor Hunt’s decades of service were defined by visionary leadership, a deep commitment to public education, and an unwavering dedication to improving the lives of North Carolinians. His impact on the state will be felt for generations.

We honor North Carolina State Representative Wilma Sherrill, a respected and long-serving legislator known for her effectiveness and tireless advocacy on behalf of Asheville and Western North Carolina. Representative Sherrill earned a reputation as a pragmatic leader who consistently delivered results for her constituents. She passed away on December 18, 2025, at the age of 86.

The coinciding passing of these two remarkable leaders is a poignant reminder of the enduring value of public service. We extend our deepest condolences to their families, colleagues, and all those whose lives were touched by their leadership and dedication.

Virgil L. Smith formerly served as president and publisher of the Asheville Citizen-Times and Vice President for Human Resources for the Gannett Company. He is the principal for the Smith Edwards Group and the author of "The Keys to Effective Leadership.” He is the founder and a writer for Carolina Commentary.