NC S557

Requires state departments and agencies (excluding the Department of Commerce for economic development purposes) to stop using development tier designations by July 1, 2027, affecting programs including farmland preservation, spay/neuter grants, wastewater reserves, housing tax credits, and oral health services

Mandates affected entities develop their own program-specific criteria to replace tier designations and report recommendations to the Fiscal Research Division and relevant legislative oversight committees by July 1, 2026

Expands development tier two from 40 to 50 counties, reducing the number of tier three counties accordingly

Creates automatic tier three classification for urban counties with population density exceeding 750 people per square mile, ranking them among the 10 lowest regardless of other economic factors

Adds population density and population growth as new factors for tier calculations, and requires annual reports to identify low-wealth and rural census tracts within tier three areas