RALEIGH, N.C. — On Wednesday, members of the North Carolina House took a significant step forward by advancing a Republican proposal aimed at enhancing recovery efforts following Hurricane Helene. The House budget committee put forward a new spending plan detailing the allocation of an additional $500 million to tackle the severe flooding that affected the state.
The proposal focuses on essential repairs to homes, private bridges, and roadways, in addition to providing support for farmers who suffered crop losses and revitalizing infrastructure integral for local small businesses. Although Republican leaders introduced a draft of this plan last week, several amendments were made in a special recovery committee meeting held on Tuesday. A vote on the House floor is anticipated next week, as noted by Rep. John Bell, who chairs the House rules and co-chairs the recovery committee.
However, the package is still less than half of the $1.07 billion requested by Democratic Governor Josh Stein earlier this month to fund recovery efforts. Stein’s proposal includes various initiatives that are currently absent from the House plan, including funds for compensating local governments in mountain areas for lost revenues and implementing two business grant programs aimed at supporting small businesses directly.
As the discussion of funding continues, Senate Republican leaders are expected to introduce their spending proposals, setting the stage for negotiations with their House counterparts. Both Stein and Republican legislators are eager to expedite the allocation of Hurricane Helene recovery funds to meet immediate community needs. It is also anticipated that further funding will be included in the state’s new biennial budget starting July 1.
Since the storm made landfall in late September, the legislature has already allocated nearly $1 billion in aid for Hurricane Helene in the aftermath of the disaster. “This is just the next step in this process,” stated House Speaker Destin Hall during the committee meeting on Tuesday. He added, “Somebody asked me earlier, ‘How many bills are we going to need to do this?’ And my answer is — it’s going to be as many as it takes for us to get it done to rebuild western North Carolina.”
Hurricane Helene significantly impacted North Carolina, damaging approximately 74,000 homes and affecting thousands of miles of state-maintained and private roads, bridges, and culverts. Estimates indicate that the storm caused historic damages and recovery needs amounting to roughly $59.6 billion. Federal legislation passed in December is expected to deliver over $15 billion to aid in rebuilding efforts in North Carolina.
The House’s proposal aims to optimize federal matching funds while learning from past recovery efforts to ensure effective fund distribution. Representative Bell emphasized that the House is taking a strategic approach to these recovery measures. Adjustments made to the initial bill included reallocating $75 million to establish a new Agriculture Department program focused on addressing agricultural crop losses and infrastructure needs.
Additionally, $60 million that was originally set aside for state facility repairs will be redirected towards helping small businesses, though not in the form of direct financial aid as previously proposed by Stein and other Democrats. Instead, the plan includes an infrastructure grant program that would distribute funds to local governments for repairs of vital infrastructure that supports small businesses working to recover from the storm. Bell expressed concerns that a direct payment grant program could lead to exploitation by entities not situated in the affected regions.
With Republicans now one seat short of a veto-proof majority in the General Assembly, Democratic legislators could have increased influence in shaping a more suitable recovery package. An example of this potential collaboration was seen when Democratic Representative Eric Ager proposed an amendment to create a direct payment scheme for small businesses. Although Ager withdrew the amendment before a vote, Bell expressed openness to revising the proposal to support the needs of small businesses effectively.
“Every day we are losing businesses in western North Carolina, and we must find a solution,” Ager commented, emphasizing the importance of maintaining business viability until the market stabilizes. As discussions continue, there is a clear effort to find common ground that addresses the urgent recovery needs of the state.
