Gov. Josh Stein’s latest funding request to the General Assembly for Helene recovery includes hundreds of millions of dollars for local governments, small businesses and nonprofits. The request comes as federal recovery funding is stalled by a partial government shutdown.
The governor announced his $792 million recovery funding request to the state’s General Assembly today while speaking at a home in Mitchell County.
The request to state lawmakers comes weeks before the start of the legislative session in Raleigh. The state still lacks a budget for the current fiscal year, making it the only state in the country without one.
“These funds will reinvigorate recovery efforts and ensure western North Carolina is positioned to bounce back for the long haul,” Stein wrote in a press release.
The state has funded $3.85 billion for storm recovery, including $2.5 billion made available through the General Assembly. The state’s Department of Transportation has spent $1.3 billion on response and recovery work.
The federal government has directed about $11 billion to the state since Hurricane Helene, but some of that money, especially reimbursements to local governments, have been sporadic and unpredictable. Stein has already requested another $13.5 billion from Congress, with most of that going towards housing repairs.
Congress hasn’t taken any action on the request, and some federal lawmakers from North Carolina have called the request duplicative.
Federal funding for disasters have most recently been stalled by a shutdown of the Department of Homeland Security, which houses the Federal Emergency Management Agency and Immigration and Customs Enforcement. The Senate has been in disagreement over policies for ICE agents for more than 40 days. Until the differences are resolved, Democrats are refusing to fund DHS.
In his latest request to the state, Stein wants to use more than half the money – $452 million – for providing matching funds to unlock federal recovery dollars. This would allow local governments to start projects that FEMA can reimburse later.
“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,” he wrote.
Where else the money will go
$82 million for:
- Making additional loan funds available to local governments to help them manage cash flow during recovery
- Providing forgivable loans to help small businesses recover and retain jobs
- Promoting tourism in Helene-affected areas including the Blue Ridge Parkway
$10 million for:
- Rental and utility assistance to help families maintain stable housing during recovery
Stein also proposed redirecting $20 million of existing state funding to partner with nonprofit organizations to rebuild more homes, with a priority for families whose needs are not being met by insurance or existing government programs.
$230 million for:
- Repairing private roads and bridges
- Capital grants to local governments managing recovery
- Debris removal
- Emergency communications systems for first responders
- Flood prevention, dam safety, and landslide hazard monitoring
- Wastewater systems
- Repairing state government and school-related facilities
$17 million for:
- Wildfire mitigation and preparedness efforts
- Repairing damage to state parks
- Rebuilding and replacing critical forestry facilities
