In a significant move towards recovery, North Carolina legislators have presented a draft of the state budget, allocating $706 million for Hurricane Helene recovery efforts. This initiative marks the sixth major relief package since the hurricane caused extensive damage across the state.
The proposed budget, approximately $34 billion in total, was released almost a year overdue. The North Carolina House and Senate are poised to vote on the proposal this week, with plans to forward it to Governor Josh Stein by late Thursday.
A Comprehensive Approach to Recovery
The “Disaster Recovery Act of 2026” encompasses various strategic measures aimed at facilitating recovery. It includes a new temporary housing assistance program funded with $40 million. This program is designed for homeowners enrolled in the Renew NC rebuilding program and low-income individuals who meet specific hardship criteria.
This housing assistance initiative seeks to alleviate a critical “choke point” in the state’s home repair program, which has been hindered by a lack of temporary housing for affected residents.
Gerard Albert III
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BPR News
Additionally, $35 million is earmarked for volunteer organizations, known as VOADs, which play a crucial role in ongoing home repair and reconstruction efforts. These groups have been pivotal in supporting households awaiting government assistance, insurance payouts, or other aid forms.
The budget also proposes $30 million for the private road and bridge repair program, addressing its previous underfunding. This includes $8 million for VOADs working specifically on road and bridge projects.
Federal Cost-Share Support
A significant portion of the budget, $450 million, is allocated to help state and local governments meet their share of federal recovery costs. This funding aims to support programs like debris removal, infrastructure repairs, and hazard mitigation. Governor Stein had previously requested assistance to cover these expenses, aligning closely with this budget allocation.
Gerard Albert III
/
BPR News
Federal cost shares have become a pressing issue, as FEMA initially covered all recovery costs for the first six months post-Hurricane Helene. However, the agency later denied extending the full cost share, leading to potential fiscal impacts for the state.
Adjustments and Omissions in the Budget Proposal
While the proposed budget supports many of Governor Stein’s requests, it diverges in certain areas. The most notable difference is in funding for private roads and bridges. Stein’s ask of $100 million was reduced to $30 million in the budget. Moreover, several economic and resilience programs proposed by Stein were omitted or scaled back.
Governor Stein has also sought federal assistance, requesting $10 billion for additional recovery measures, including $300 million specifically for road and bridge repairs.
