The U.S. Department of Housing and Urban Development has approved the state of North Carolina’s plan for spending $1.4 billion in federal disaster block grants, Gov. Josh Stein’s office said Friday.
The decision brings Western North Carolina one step closer to receiving the funding, which is part of the Community Development Block Grant Disaster Recovery (CDBG-DR) program and was allocated by Congress late last year in the wake of Hurricane Helene.
“This is great news for Western North Carolina,” Stein said in a statement. “I thank the Trump Administration for moving quickly to approve this plan so we can get busy rebuilding people’s homes.”
The state moved swiftly in drafting its proposal for the funding, which is separate from the $225 million in HUD funds dedicated to the City of Asheville. Stein’s office said Friday that compared to other states over the past decade, North Carolina submitted its plan to HUD “in the shortest amount of time following a major hurricane.”
Stein and other state officials have said that even though the $1.4 billion allocation is welcome news, it is still far from the total amount necessary to recover from the historic storm, which is estimated to have caused nearly $60 billion in damage.
At a listening session in Asheville in February, Stephanie McGarrah, deputy secretary for the Division of Community Revitalization at the N.C. Department of Commerce, said the “vast majority” of the funding – about $1 billion – will go toward housing.
Even so, that amount will likely enable the repair of only about 3 to 4% of the total number of homes damaged, McGarrah said.
Hurricane Helene damaged about 74,000 homes in North Carolina.
"We’ve learned so much from the many people and organizations that have taken time to offer their suggestions, and I’m grateful for everyone’s participation so far,” McGarrah said in a statement Friday. “We know the road to full recovery will be a long journey, but the Department of Commerce and my team are ready to get to work.”
Of the remaining funding, $194 million will go toward community infrastructure, $111 million will go toward commercial district revitalization and about $71 million will go toward administration of the program.
“Once HUD certifies the state’s financial controls for the program, North Carolina can sign the grant agreement and begin committing these funds with a focus on housing and economic revitalization,” Stein’s office said Friday.
Sens. Thom Tillis (R-N.C.) and Ted Budd (R-N.C.) also thanked the Trump administration for approving the funds. In separate statements, the senators pointed to a letter they sent with other members of the state's congressional delegation to HUD Secretary Scott Turner earlier this month advocating for the release of the funds.
"This life-changing investment will provide real relief to the thousands of families who suffered from Helene’s destruction. I am grateful to the Trump administration for answering our call, acting swiftly, and demonstrating their commitment to our state’s recovery," Budd said in a statement Monday.
Tillis said in a post on X, formerly known as Twitter, that he was "proud to advocate for these funds and will work to ensure they are disbursed quickly to bolster Helene recovery efforts."
The latest version of the state’s plan can be viewed online here.
Note: This story has been updated to include statements issued by Sens. Budd and Tillis on Monday, April 28.
