The state of North Carolina is grappling with a significant funding challenge as federal disaster recovery funds are delayed due to a government shutdown. In response, Governor Josh Stein has made a substantial plea to the General Assembly, requesting $792 million to aid in recovery efforts for areas affected by Hurricane Helene.
Governor Stein unveiled this funding request in Mitchell County, emphasizing the urgent need for financial support to help local governments, businesses, and nonprofits. This appeal comes at a critical time, just as the state legislature is about to begin its session in Raleigh and amidst an ongoing budget impasse, leaving North Carolina as the sole state without a fiscal plan.
“These funds will reinvigorate recovery efforts and ensure western North Carolina is positioned to bounce back for the long haul,” Stein stated in a press release.
North Carolina has already allocated $3.85 billion for storm recovery, with $2.5 billion provided by the General Assembly. The state’s Department of Transportation has spent $1.3 billion on related efforts. However, federal contributions totaling approximately $11 billion have been inconsistent, particularly concerning reimbursements to local governments. Stein has also requested an additional $13.5 billion from Congress, primarily for housing repairs, yet this request remains unaddressed.
The delay in federal funds is tied to a shutdown in the Department of Homeland Security, which includes the Federal Emergency Management Agency. This stalemate has persisted for over 40 days due to disagreements over Immigration and Customs Enforcement policies, preventing DHS funding.
Stein’s proposal allocates over half of the requested funds—$452 million—to match federal recovery dollars, enabling local governments to initiate projects later eligible for FEMA reimbursement.
“We must match the urgency and grit western North Carolinians have displayed over the past 18 months, and this additional state investment ensures the state continues [to] push recovery forward: supporting families, rebuilding communities, and strengthening resilience for the future,” Stein wrote.
Allocation of the Requested Funds
$82 million for:
- Providing loans to local governments for cash flow management during recovery
- Offering forgivable loans to small businesses to aid in recovery and job retention
- Boosting tourism in Helene-affected regions, including the Blue Ridge Parkway
$10 million for:
- Rental and utility assistance to maintain family housing stability during recovery
Governor Stein also plans to redirect $20 million of existing funds to collaborate with nonprofits to rebuild homes, prioritizing families not fully supported by insurance or government programs.
$230 million for:
- Repairing private roads and bridges
- Providing capital grants to local governments for recovery management
- Debris removal
- Enhancing emergency communications systems for first responders
- Implementing flood prevention, dam safety, and landslide hazard monitoring
- Improving wastewater systems
- Repairing state government and school facilities
$17 million for:
- Wildfire mitigation and preparedness
- Repairing damages to state parks
- Rebuilding critical forestry facilities
