Requires Office of State Budget and Management (OSBM) to eliminate State agencies’ unfilled employee positions vacant for at least 24 months by transferring all lapsed salary funds associated with those positions vacant on July 1, 2026, with cost-savings retained in a budgetary reserve that can only be expended when appropriated by NCGA. Effective July 1, 2026.

Prohibits OSBM from eliminating positions held open pursuant to a court order or pending litigation, funded entirely by non-state funds, or designated necessary for emergency preparedness by the Governor. Prohibits OSBM from transferring lapsed salary funds designated to be expended or redirected for: (1) state self-funded workers’ compensation claims, disability claims, and tort claims; (2) overtime pay and shift pay in the Department of Public Safety (DPS), Department of Adult Correction (DAC), Department of Health and Human Services or any other state department, agency, or institution operating on a daily 24-hour basis; (3) nonpersonnel expenditures in DPS and DAC with a list of expenditures this includes; and (4) third-party contracts for staff contributing to 24-hour facilities’ operations.

Requires OSBM to submit a written report detailing positions eliminated and transferred lapsed salary funds to the NCGA and the Fiscal Research Division by December 1, 2026. Provides list of information the report must include.

Clarifies the act does not apply to the judicial branch, legislative branch, or State-funded local employees of community colleges or local public schools.

Amends GS Chapter 143C Article 6 by adding new GS 143C-6-6.1, requiring any vacant position that is unfilled for at least 24 consecutive months to be abolished (effective on the first day of the fiscal quarter immediately following the end of the 24-months). Defines vacant position as any authorized State position not filled by a permanent employee and not subject to active posted recruitment. Requires OSBM to reflect each abolishment in the certified budget and requires notice by the state agency holding the position to OSBM and the Office of State Human Resources within 30 days after a position is subject to abolishment. Act remains in force unless expressly repealed by a subsequent act of the NCGA. Effective July 1, 2027.

Appropriates $100,000 in nonrecurring funds for 2026-27 from the General Fund to OSBM to implement the act’s provisions. Effective July 1, 2026.