RALEIGH, N.C. — On Wednesday, Republican legislators in North Carolina presented their preliminary funding proposal aimed at aiding recovery efforts from the devastation caused by Hurricane Helene’s severe flooding. However, the proposed budget falls significantly short, totaling only $500 million, which is less than half of what newly elected Democratic Governor Josh Stein had asked for in his recent request for $1.07 billion in recovery aid.
A committee within the House evaluated the proposed spending plan, yet no vote was taken. The funding proposal encompasses financial support for some of the initiatives proposed by Stein. Last year, the legislature allocated over $900 million for both relief and reconstruction efforts following the hurricane. Additionally, funds that had been previously set aside for Helene recovery will play a crucial role in supporting both Stein’s and the House Republicans’ proposals.
Both Stein and the GOP leadership in the legislature are prioritizing the passage of a funding bill early in the current General Assembly session, rather than delaying until the state’s budget negotiations, which usually begin in July. They anticipate pursuing further recovery funding as the year progresses. Rep. John Bell from Wayne County, who co-chairs the House recovery committee for Helene, acknowledged the limitations of the funding but emphasized that this proposal serves as an initial step, with hopes for subsequent measures.
The proposals from both parties set aside $150 million to initiate a home reconstruction and repair program in the mountainous regions while waiting for federal funds to arrive. They also include various amounts allocated for supporting farmers and rebuilding vital infrastructure such as roads and bridges.
State officials reported that Hurricane Helene claimed over 100 lives, damaging 74,000 homes and affecting thousands of miles of both public and private roads. The storm’s destruction was estimated to require a staggering $59.6 billion for recovery efforts. Federal legislative measures passed in December are expected to provide North Carolina with more than $15 billion for reconstruction.
Bell noted that the $500 million proposal is subject to change as discussions with Senate counterparts evolve. He stated that the House would aim to appeal to federal matching funds and would take care to avoid mistakes from prior recovery programs that were criticized following the devastation of Hurricane Matthew in 2016 and Hurricane Florence in 2018. Currently, there remains a shortfall of $217 million to complete the reconstruction of over 1,100 homes in eastern North Carolina that were impacted by those past hurricanes.
Rep. Dudley Greene of Avery County, who himself faced damage from Helene, expressed concerns regarding the uncertainty surrounding available repair funds for western North Carolina and their allocation. He hopes that the proposed measures will help clarify the situation as they move forward.
Establishing a unified funding strategy will be a critical early challenge for Stein as he navigates relationships with Republican legislators who control the legislature yet lack a decisive majority. The House committee is scheduled to review proposed amendments in the coming week, with a floor vote anticipated shortly thereafter. Meanwhile, Senate Republicans have introduced their own preliminary disaster relief bill on the same day.
The House proposal notably excludes Stein’s request for $150 million to fund two business grant programs aimed at assisting companies that have experienced significant financial losses or physical damage. Many Republicans have previously raised concerns about direct grants to businesses over loans. Bell indicated that discussions about potentially including a grant program might arise as the legislative process progresses.
Additionally, the proposed House package omits Stein’s request for $100 million aimed at reimbursing local governments in mountainous areas for lost or utilized revenues, as well as his appeal for $34 million to support summer school programs in districts that experienced significant disruptions following the hurricane’s impact. Stein highlighted the urgency for these funds to avoid construction delays in housing, prevent further business closures, and ensure that students do not fall behind in their education.
