Funding to rebuild in western North Carolina after Hurricane Helene is severely lagging, according to new data released by North Carolina’s Office of State Budget Management (OSBM).
Overall, federal and state government funding allocated for Helene recovery has totaled about $5.95 billion—only about 10% of what’s needed in the region to rebuild and repair homes; fix damaged roads and infrastructure; and support the public services, businesses and individuals affected by one of the country’s worst disasters in recent history.
State officials estimate the storm and flooding caused about $59.6 billion in damages.
The OSBM report, released May 15, is compiled quarterly by the North Carolina Governor’s Recovery Office of Western North Carolina (NC GROW), and covers the onset of the storm on September 27 through March 31, 2025.
Congress approved an additional $100 billion in December 2024 in the American Relief Act (HR 10545) to help states affected by Hurricanes Helene and Milton. North Carolina officials requested about $25 billion from that fund and anticipated about $16 billion. But the report’s authors state that only a fraction has been received.
“As of March 31, 2025, federal agencies had allocated $2.7 billion
in funding from HR 10545 to North Carolina’s Helene recovery efforts. Of this amount, the State of North Carolina has not received at least $2 billion,” wrote the report’s authors.
The new report doesn’t include allocations from the state’s most recent relief package in March, HB47. North Carolina lawmakers approved an additional $524 million for recovery, but the funds weren’t available until mid-April. It’s also important to note that not all federal and state funds identified in the May 15 have been spent. Some programs need to meet federal requirements before they can be put to use.
Here is a snapshot of where the recovery funds have been spent so far. Figures have been rounded.
FEMA’s Public Assistance: $417 million. This program funds state, tribal and local governments as well as some private nonprofits following a federally declared disaster. It includes:
- $178 million for Emergency Protective Measures: these were temporary measures taken to save lives, protect public health and safety, and prevent property damage. Examples include search and rescue, evacuation and sheltering.
- $125 million for Public Assistance “Other”: this includes six categories that were not broken down in the OSBM report, including roads and bridges, public buildings and utilities, parks and recreation facilities and administrative costs.
- $114 million for debris removal: as of March 31, 6.2 million cubic yards of right-of-way debris and 1.9 million cubic yards of waterway debris had been removed.
- Who’s impacted: state, local and county governments coordinating the emergency response to Helene.
FEMA Individual Assistance: $415 million to 158,000 households and individuals. This includes home repair and replacement, road and bridge repair, and other supports. After several extensions, the final deadline to apply was April 7, 2025.
- $162 million: on housing assistance to repair, replace or secure temporary housing. As of March 31, about 25,000 applications were approved, and 2,300 claims were pending.
- $253 million: on “other needs” assistance, which can be used for things like funeral costs, personal property replacement, cleaning, and mold remediation.
- $20 million: was spent on private road and bridge repair for about 6,900 applicants, with about 4,400 applications pending.
- Who’s impacted: property owners and renters whose homes, roads, bridges and belongings were damaged or destroyed by Hurricane Helene.
The U.S. Small Business Administration: $167 million. The SBA offers Business Physical Disaster Loans, available to businesses and nonprofits, and Home Disaster Loans, available to homeowners and renters. Both can provide assistance with real estate, machinery, inventory and personal belongings damaged or destroyed by the storm.
- The SBA received 13,000 applications for loans and has disbursed about 4,000 through March 31.
- An extension for Physical Damage Loans was extended through April 27 and will be reported in NC GROW’s next report.
- The SBA is accepting loan applications for Economic Injury Disaster Loans through June 30, 2025. However, those only apply to small businesses, nonprofits and agricultural co-ops.
- Who’s impacted: small businesses, nonprofits, homeowners, renters, and farmers with property damage, inventory loss, or income disruption due to Hurricane Helene.
Unemployment Assistance: $90 million
- $56 million: spent on about 15,000 “Unemployment Assistance” claims, with about 4,900 claims pending. This program typically issues $350 weekly. An executive order issued in October authorized an increase of $600 weekly.
- $34 million: spent on nearly 9,000 “Disaster Unemployment Assistance” claims, through March 29, with about 2,000 more eligible for payment. DUA covers those ineligible for regular unemployment, including self-employed and gig workers.
- Who’s impacted: Workers across western North Carolina who lost income due to Hurricane Helene—including laid-off employees, the self-employed, gig workers, and others. A December 2024 Hurricane Helene Damage and Needs Assessment found the unemployment rate in the region rose to a range of 6-9% after the storm, though that number has dropped to about 5% in March for the hardest-hit counties.
Rental Assistance: $1 million. By far one of the smallest expenditures, this state funding was allocated to the Department of Health and Human Services which then distributed it local governments for rental assistance.
- About 750 households received support for up to two rental payments.
- These funds were spent by the end 2024 and no further funds were allocated January-March 2025.
- The majority of rental assistance went to Buncombe County, but just over half of that funding has been distributed.
- Who’s impacted: renters who have suffered hardship due to Hurricane Helene and are facing a housing crisis, such as imminent risk of eviction.
Hazard Mitigation Grant Program: $15.5 million. This program provides grants to local governments to reduce damage from future disasters, and includes infrastructure improvements, property acquisition, flood risk reduction, and community planning.
- The majority of requests to acquire property came from Buncombe County, followed by Mecklenburg, Henderson and Yancey Counties, according to the December OSBM report
- Applications for the HMGP program are under review.
- Who’s impacted: property owners severely affected by Helene who want to apply for acquisition, elevation of their home, or other mitigation through their county.
Direct Housing
The May 2025 report says, as of March 31, 235 households received direct housing, which can include temporary travel trailers, manufactured housing units, or leases. The report did not provide a breakdown or expenditure for this type of assistance.
State programs on the way
About $524 million in funding approved by state lawmakers in March is expected to be disbursed throughout the summer and fall, and into next year. These include:
$200 million: Agricultural Disaster Crop Loss Program. This program provides financial assistance to farmers who experienced Helene-specific damage to agriculture, farm infrastructure or aquaculture.
$120 million: State Home Reconstruction and Repair Program. North Carolina’s Department of Commerce has allocated this funding to “improve the timeline for housing repair and reconstruction” before $1.4 billion in HUD Community Develop Block Grant-Disaster Relief funding arrives.
$100 million: State Private Roads and Bridges Repair and Replacement Program. Funds are coming to repair or replace private roads, bridges, pipes and culverts. North Carolina Emergency Management (NCEM) is prioritizing residential properties whose only road or bridge is the only avenue for emergency vehicles to use. About 3,000 people have expressed interest in this program.
$55 million: Small Business Infrastructure Grant Program. Funds provide assistance to NC Commerce, whose Rural and Economic Development Department will administer the grants to local governments. Those local governments will disburse the grants to small businesses
- Application cycle began May 1, 2025 and the first disbursement is scheduled for June 30, 2025.
$10 million: Ongoing Repair and Reconstruction. Funds are available from the NC Department of Public Safety to provide grants to qualifying Volunteer Organizations Active in Disasters, which must be 501c(3) nonprofits working on ongoing repair and reconstruction. NCEM is currently accepting applications.
Additional federal funding
Another pot of funding that is yet to be spent is the $1.65 billion in grants from the U.S. Department of Housing and Urban Development Community Development Block Grants-Disaster Recovery (CDBG-DR) funds, including.
- $1.43 billion to the state for projects that include reconstruction and rehabilitation of housing, rental housing, infrastructure and economic revitalization.
- $225 million to the city of Asheville for projects that include infrastructure, economic revitalization, planning and public services.
North Carolina officials continue to request more federal funding for Helene recovery. In February, Governor Josh Stein requested an additional $19 billion in federal assistance intended for the repair and reconstruction of homes; restoring roads, bridges and sewer systems; aiding local municipalities with budget shortfalls; and other needs. On May 19, Stein also requested an additional $891 million from the state legislature.
This story was produced for NC Local and made possible in part with funding from the Knight Foundation and Center for Disaster Philanthropy.