RALEIGH — North Carolina has approved a new state budget that includes significant investments aimed at strengthening cybersecurity protections, modernizing data management systems and supporting the state’s health information exchange infrastructure, underscoring the growing importance of digital resilience in government operations.
The budget provides a combination of recurring and one-time funding to help state agencies improve cybersecurity defenses, upgrade technology systems and ensure the continuity of critical public services. State officials said the investments are designed to address evolving cyber threats while enhancing the efficiency and reliability of digital services relied upon by residents and businesses across the state.
Under the approved spending plan, North Carolina will allocate $18 million in new recurring funding and an additional $42 million in non-recurring funding for cybersecurity upgrades. The budget also includes $25 million in non-recurring funding to modernize data management systems and $3.8 million for the N.C. Health Information Exchange Authority.
The funding package comes as governments across the United States continue to face increasing cybersecurity challenges, including ransomware attacks, data breaches and other threats that can disrupt public services and compromise sensitive information. As state agencies expand their use of digital tools and online platforms, officials say maintaining secure and reliable systems has become a critical priority.
According to state officials, the recurring cybersecurity funding will support ongoing efforts to strengthen security measures and improve the state’s ability to prevent, detect and respond to cyber incidents. The non-recurring funding will be used to accelerate technology upgrades and address immediate infrastructure needs, helping agencies reduce vulnerabilities and improve operational resilience.
The state’s investment in data management modernization is expected to enhance the way agencies collect, store and use information. Modernized systems can help improve efficiency, support informed decision-making and facilitate better service delivery to residents and businesses.
Funding directed to the N.C. Health Information Exchange Authority is intended to support a more secure and effective exchange of health information. Improved health data sharing capabilities can help healthcare providers access critical information more efficiently while maintaining safeguards for sensitive patient data.
State technology leaders said the budget reflects recognition of cybersecurity as a core component of government operations rather than a standalone technology expense.
“This budget recognizes that cybersecurity is foundational to safe, reliable government operations,” said Nate Denny, N.C. Department of Information Technology Secretary and State Chief Information Officer. “This is not a one-time expense; protecting North Carolina’s data and systems requires an ongoing commitment. I thank Governor Josh Stein and members of the House and Senate for this historic commitment.”
The budget’s cybersecurity allocations are expected to help state agencies strengthen protections against emerging threats while supporting long-term security planning. Officials have increasingly emphasized the need for sustained investments in cybersecurity as threat actors continue to target public-sector organizations nationwide.
Beyond cybersecurity, the broader technology investments are aimed at improving the reliability and effectiveness of government services. As more interactions between citizens and government agencies occur through digital platforms, maintaining modern and secure technology infrastructure has become essential to meeting public expectations and ensuring uninterrupted access to services.
State officials said the combined investments represent a coordinated approach to digital readiness, addressing both immediate technology needs and long-term infrastructure goals. By strengthening cybersecurity defenses, modernizing data systems and supporting secure health information exchange, the budget seeks to enhance the resilience of government operations and safeguard critical public resources.
Together, the funding initiatives form a comprehensive strategy designed to protect public data, improve government service delivery and reinforce the security and stability of North Carolina’s digital infrastructure for years to come.
