The North Carolina Department of Commerce has revealed the county tier designations for 2026, a crucial classification that influences various economic development programs. The announcement, which is a legal requirement, affects several counties across the state, with changes in their tier status. These rankings are pivotal as they determine the eligibility and guidelines for grants and other financial assistance programs. The tier system is designed to assist counties in economic distress by channeling resources where they are most needed.
For 2026, a total of eighteen counties will see a change in their tier designations. Among them, Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly, and Surry counties will move to a less distressed tier ranking. Conversely, Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank, and Yancey counties will shift to a more distressed tier ranking. These changes follow the methodology set by the North Carolina General Assembly in General Statute §143B-437.08, which evaluates counties based on unemployment rates, median household income, population growth, and assessed property value per capita.
The tier designation system classifies counties into three categories: Tier 1 for the most economically distressed, Tier 2, and Tier 3 for the least distressed. The system mandates that 40 counties are categorized as Tier 1, another 40 as Tier 2, and the remaining 20 as Tier 3. This classification impacts the distribution of funds across the state, particularly through programs like the One North Carolina Fund, building reuse, and water and sewer infrastructure grants. Additionally, it influences the state’s Job Development Investment Grant (JDIG) program, directing resources towards infrastructure improvements in more economically challenged areas.
Further details about the tier designation system can be found on the North Carolina Department of Commerce website at commerce.nc.gov/tiers.
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