In the midst of ongoing budget discussions, North Carolina’s Republican leaders are contemplating a significant policy shift that could alter funding for urban road maintenance. Since 1951, cities have relied on the Powell Bill for state funds to maintain local roads, but this historic financial support is now under scrutiny.
The Department of Transportation highlights that these funds, which have traditionally been used for maintaining over 20,000 miles of municipal streets, could face new limitations. These streets, which do not form part of the state highway system, benefit from allocations used for resurfacing, pothole repairs, pre-snow road treatment, bridge maintenance, and the construction of bike paths and sidewalks.
However, the latest Senate budget proposal suggests excluding cities with populations exceeding 150,000 from receiving these funds. The proposed change is expected to redirect approximately $50 million annually towards “support disaster recovery,” putting large cities at risk of losing a critical financial resource. In contrast, the House budget proposal continues to provide nearly $186 million each year for these projects.
Should the Senate’s proposal prevail, North Carolina’s largest cities — including Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, Fayetteville, and Cary — would be notably affected. The potential funding cuts have sparked concern among city leaders, who warn of the ramifications on local infrastructure.
Fayetteville Mayor Mitch Colvin underscored the significance of this funding in April, stating it has “been vital” for the city. In response, Fayetteville’s city council unanimously opposed the funding cuts.
Similarly, Winston-Salem’s City Council member Robert Clark expressed alarm over the potential loss of over $8 million annually, calling it “astronomical.” Winston-Salem’s budget director, Scott Tesh, cautioned, “Those things that get defunded in Raleigh in one cycle often find themselves being defunded for a much longer time than we originally anticipated.”
With the new fiscal year commencing on July 1, state legislators are working to resolve these budgetary differences and reach an agreement before the deadline.
