RALEIGH, N.C. — On Wednesday, members of the North Carolina House moved forward with a Republican initiative aimed at enhancing the state’s financial support for recovery efforts after Hurricane Helene. This development comes as the committees worked on the specifics of allocating an additional $500 million to mitigate historic flooding caused by the storm.
The budget-writing committee of the House endorsed the new spending proposal, prioritizing repairs for homes affected by the hurricane, along with restoration of private roads and bridges, support for farmers whose crops were damaged, and infrastructure rebuilds that benefit small businesses.
GOP leaders in the House had introduced a version of this proposal last week, but various amendments modified the plan during a special committee session on Tuesday. A full vote on the House floor is anticipated next week, according to Rep. John Bell, the House’s rules chair and a co-chair of the recovery committee.
Despite the progress, the package represents less than half of the $1.07 billion that Democratic Governor Josh Stein requested for recovery initiatives earlier this month. Stein’s proposal includes vital aspects that the House plan does not address, such as funds for local governments in mountainous areas impacted by revenue losses and two grant programs aimed at supporting small businesses directly.
The Senate’s GOP leaders are also formulating their own competitive spending proposals, which will play a role in the discussions with House members. Both Stein and Republican lawmakers are eager to expedite financial assistance for Helene victims, focusing on urgent needs, while additional funding is expected in the two-year state budget set to begin on July 1.
Since Hurricane Helene struck in late September, nearly $1 billion has already been appropriated for relief efforts. House Speaker Destin Hall emphasized during Tuesday’s committee meeting that this is merely a step in the ongoing recovery process. He responded to inquiries about the number of bills needed for recovery by stating that the House would continue introducing necessary legislation to effectively rebuild Western North Carolina.
The storm caused significant damage, affecting around 74,000 homes and thousands of miles of roads, bridges, and culverts. Officials estimate that the hurricane led to a staggering $59.6 billion in damages, necessitating considerable recovery efforts. Federal legislation passed in December, along with other actions, is projected to deliver over $15 billion to North Carolina for reconstruction efforts.
The House’s financial proposal aims to optimize federal matching funds, learn from past storm recovery shortcomings, and ensure that funds are allocated judiciously, particularly away from programs that may struggle to efficiently distribute the resources, according to Bell.
This week, House Republicans made adjustments to the proposal, including a shift of $75 million to establish a program under the state Agriculture Department to address losses in agriculture due to the storm. They also revised the distribution of $60 million that was initially designated for state facility repairs to instead aid small businesses indirectly rather than through direct cash payments, as proposed by Stein and other Democrats.
The modified plan for infrastructure grants will give funds to local governments for necessary repairs to utilities, broadband, and sidewalks, ultimately supporting small businesses recovering from the disaster. Bell expressed concerns that businesses outside the affected areas could misuse a direct grant program.
As Republicans hold one seat less than a veto-proof majority in the General Assembly, Democratic members like Stein may have more influence in shaping a recovery package. For example, Democratic Rep. Eric Ager proposed an amendment for a direct payment program to assist small businesses but withdrew it due to funding challenges identified in earlier discussions. Ager reiterated the pressing need for solutions to keep local businesses afloat as they anticipate improved business conditions in the summer.
Though Ager retracted his proposal, Bell noted the possibility of reconsidering language to benefit small businesses in the future. Senate leader Phil Berger stated he would not make any judgments on the House proposal until it is presented to the Senate, emphasizing the urgency for a separate bill addressing Hurricane Helene recovery. Meanwhile, Democratic Sen. Julie Mayfield mentioned that some Senate Republicans are exploring a forgivable loan initiative as an alternative to direct grants for businesses.
