In a significant development for North Carolina, the state is set to receive $165.9 million in disaster relief funds, with $92 million earmarked for Hurricane Helene recovery efforts. This funding comes as a welcome relief for local governments that have been awaiting reimbursement for months.
However, the allocation has also highlighted a critical issue: the federal fund designated for disaster response is now dangerously low due to the ongoing partial government shutdown.
Hurricane Helene wreaked havoc in western North Carolina 17 months ago, causing an estimated $60 billion in damages. Since then, state and local governments have been working tirelessly on infrastructure repairs and debris clearance, backed by approximately $7 billion in federal commitments, as reported by state recovery officials.
Amid this backdrop, the Department of Homeland Security has been shuttered for two weeks, a result of political gridlock over federal law enforcement oversight. The shutdown has impacted funding for agencies under DHS, including FEMA.
The latest funds from FEMA’s Disaster Relief Fund are part of a larger, multi-billion-dollar release to various states. However, this will nearly exhaust the fund’s reserves, pending congressional action to replenish it.
“This solution will not last forever, as FEMA’s reserves will run dry without reopening DHS,” stated Republican U.S. Sen. Ted Budd of North Carolina.
In addition to the Helene recovery funds, $74 million will be used to reimburse local governments for expenses incurred during the COVID-19 pandemic.
The $92 million designated for Hurricane Helene was delayed due to a rule implemented by DHS Secretary Kristi Noem, requiring her personal approval for FEMA expenditures exceeding $100,000. This has contributed to a $17 billion bottleneck nationwide.
Funding disbursement includes:
- $1,135,211 to Henderson County Hospital Corporation for emergency measures at Pardee Hospital during the pandemic.
- $1,916,520 to Madison County for emergency response during Hurricane Helene.
- $5,326,298 to Buncombe County for sewage system repairs and emergency protective measures post-Hurricane Helene.
- $1,239,259 to the Town of Old Fort for Westerman Street Water Line restoration after Hurricane Helene.
- $20,358,749 to the North Carolina Department of Transportation for road and highway repairs in Buncombe, Mitchell, and Avery Counties following Hurricane Helene.
- $4,607,775 to the North Carolina Department of Transportation for road repairs to Pearson Falls Road in Polk County.
- $13,275,253 to Mitchell County for debris removal post-Hurricane Helene.
- $5,600,601 to the City of Asheville for repairs to the North Fork Water Treatment Plant after Hurricane Helene.
Local governments, some of which have exceeded their annual budgets due to Hurricane Helene’s aftermath, have faced prolonged waits for federal reimbursements.
“Delays in getting this money have real negative consequences for local governments who are constantly having to plan for the future and pay today’s bills amid a great deal of uncertainty,” said Matt Calabria, head of North Carolina’s recovery office.
Calabria and Gov. Josh Stein have been actively lobbying in Washington, D.C., to secure the funds and pursue additional congressional allocations. “I continue to urge DHS both to act swiftly to ensure local governments receive quick reimbursements for storm-related expenses and to approve the buyouts of people’s property in the flood zones,” Gov. Stein stated to BPR News.
Sen. Budd has attributed the federal shutdown and funding delays to Democratic lawmakers, stating efforts with President Donald Trump to secure some Helene aid despite the shutdown.
“I am proud to announce that these efforts, in conjunction with Secretary Noem, have resulted in tens of millions of additional PA [public assistance] grant funding being approved for Western North Carolina,” Budd said in a statement to BPR News.
Despite the incoming funds, local governments across western North Carolina continue to endure the impacts of what experts describe as an unpredictable and chaotic funding process.
“There’s less money moving out the door, and it’s less predictable how that money is moving. It’s not clear what the standards are, what the process looks like,” remarked Sarah Labowitz, a senior fellow at the Carnegie Endowment for International Peace.
“It’s sort of like reading tea leaves or like waving a magic wand, what triggers the release of that money.”
