North CarolinaHB 10122025-2026 SessionHouseWALLET

AN ACT TO PROVIDE ADDITIONAL APPROPRIATIONS AND EXTEND REGULATORY FLEXIBILITY FOR COMMUNITIES AND CITIZENS IMPACTED BY HURRICANE HELENE AND WILDFIRES, AS RECOMMENDED BY THE HOUSE COMMITTEE ON APPROPRIATIONS.

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Bill Overview

Analyzed Economic Effects

35 provisions identified: 28 benefits, 0 costs, 7 mixed.

Major water and sewer recovery funds

The law provides $685,613,000 for FY 2025–2026 to fix water and wastewater systems hit by Helene. It sends $253,681,000 to the Clean Water State Revolving Fund and $409,422,000 to the Drinking Water State Revolving Fund. Within Clean Water, $22,510,000 is set to strengthen decentralized wastewater systems and help connect to central systems. DEQ receives and administers these funds. More groups can apply for decentralized system financing, including local governments, nonprofit water corporations, CDFIs, and nonprofits that help homeowners pay for repairs.

More DOT money and weekly tracking

The law moves $298,161,418 to the DOT for Hurricane Helene recovery and lets DOT use up to $270,000,000 in Credit Balance Funds in FY 2025–2026. For FY 2025–2026, NCRR dividend money gives $2,000,000 to Blue Ridge Southern Railroad, $2,000,000 to Great Smoky Mountains Railroad, and $600,000 for other set uses. Any unused amounts from those allocations go back to the Highway Fund on June 30, 2027, and FY 2026–2027 NCRR dividends go to DOT for recovery. DOT must keep all Helene spending in a separate account, return federal reimbursements to that account, and then move any leftover recovery funds to its maintenance reserve when work ends. DOT must also report weekly totals for Helene spending and federal reimbursements until recovery is complete.

Funds to rebuild Yancey schools

The State Controller transfers about $56.3 million of interest earned as of June 30, 2025, to school recovery. $25 million goes to Yancey County to rebuild destroyed public school infrastructure. Schools must have sought insurance and not been reimbursed by federal aid, and the county must prevent duplicate insurance payments. $31.3 million goes to the Public School Facilities Program’s Capital Recovery Funds.

Major funding for Helene recovery

The State moves $635.25 million from four reserves into the Hurricane Helene Disaster Recovery Fund for 2025–2026. It appropriates $500 million one‑time across many agencies, including $208 million for emergency management and $63 million for agriculture. It also transfers $64.75 million from DEQ, DPI, the UNC System Office, and the State Board of Elections into the Fund.

Canton wastewater service and new plant

The state gives Canton $16,000,000 to keep wastewater service going and build long-term capacity. $2,000,000 supports emergency operations to keep treatment running. $14,000,000 buys the former Pactiv plant and related property to build a new regional facility and infrastructure outside the floodplain. This protects local water and sewer service for residents.

More help from disaster volunteer groups

The state gives $18,000,000 to Emergency Management to grant to VOAD member groups. These organizations are actively repairing and rebuilding homes after Hurricane Helene. The agency must report by October 1, 2025, and every six months until all funds are spent.

State covers FEMA match for Helene

The state provides $70 million in 2025–2026 to pay the nonfederal share for FEMA disaster recovery. This helps projects for damaged homes and community needs move faster in the affected area.

50/50 reimbursement for private road repairs

Homeowners and HOAs with a finished private road or bridge project can apply for reimbursement. NC Emergency Management pays 50% of the project cost. $25 million is reserved just for reimbursements within a $75 million program. You must apply during the six‑month window after applications open. If money remains after reimbursements, the program can use it for new construction.

Repairs for schools and colleges

Public school units in the affected area can apply for repair grants up to $500,000 each. Units must be denied insurance and federal aid first. The NC School for the Deaf in Morganton gets $1 million for repairs. UNC campuses get $6 million total for repairs and resiliency (WCU $2M, App State $2M, UNC Asheville and NC Arboretum $2M). Named private colleges get $4.25 million total to fix storm damage. NC State may demolish up to three condemned Helene‑damaged buildings at the Black Mountain 4‑H Camp with required approvals and permits.

Help for farms and processors

Farmers can get $25 million to cover only verifiable farm infrastructure losses in the affected area. The program can fund existing applicants and open a new round. Another $8 million funds eligible atmosphere‑controlled agricultural processing projects in the affected area under existing rules.

Cash-flow loans and help for local governments

The state provides $51,500,000 to the State Treasurer for short‑term cash‑flow loans to local governments in Helene‑hit areas, following existing loan rules. It also provides $6,000,000 for technical help: $2,000,000 each to the NC League of Municipalities, the NC Association of County Commissioners, and the NC Association of Regional Councils of Government. These groups must focus on counties under 250,000 people. Any local government that already received a separate HUD Helene allocation cannot get this assistance.

Flood mitigation grants with no match

NC Emergency Management runs a Flood Mitigation Grant Program for the affected area. Grants can pay for culvert or bridge work, stormwater and drainage fixes, moving at-risk infrastructure, and hardening critical facilities and utilities. Local governments can also get engineering grants to design shovel‑ready projects. There is no local match; eligible costs are reimbursed. Awards are capped at 10% to any one recipient and 20% to any one county.

Funding for Western NC recovery office

The Governor’s Recovery Office for Western North Carolina receives $10,000,000. $5,000,000 is available in each year of the 2025–2027 budget period. The office uses the funds to coordinate recovery and help communities get services.

Grants for local storm-damaged infrastructure

The state creates a capital grant program run by OSBM with $70 million to fix local infrastructure damaged by Helene. $20 million is reserved for Madison County, and up to $250,000 supports program administration. Eligible applicants are local governments and federally recognized tribes on trust lands in the affected area. OSBM uses a FEMA-based damage-per-person formula and funds projects denied FEMA Public Assistance, with priority to places under 300,000 people and FEMA Categories C–G. Awards are capped (no more than 20% to one county, 5% to any recipient, and 5% per zip code when that zip only qualifies for FEMA Categories A–B), and OSBM must report every six months.

Grants to fire and rescue squads

The state provides $18,000,000 to the State Fire Marshal for $50,000 grants to each eligible department or squad. Recipients must be in these western NC counties: Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Clay, Cleveland, Cherokee, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, Watauga, Wilkes, and Yancey. Money can repair or replace damaged gear and facilities and improve wildfire response. It cannot be used to fund full‑time staff positions.

More money for flood and fire

The law funds stream cleanup and safety and wildfire response. It provides $15 million for streamflow rehabilitation. It provides $10 million to fix or remove damaged dams and $3 million for landslide hazard mapping. It provides $15 million for wildfire equipment and contracts in the affected area.

State emergency rules extended to Oct. 2025

The statewide emergency declaration under Executive Order 315 is extended through October 1, 2025. The regulatory flexibilities listed in S.L. 2025‑2, Section 5.1, stay in place until then. This does not affect Executive Order 322.

State railroad pays annual dividend

For 2025–2027, any State‑owned railroad with tracks in more than two counties must pay the State a dividend equal to 25% of prior‑year trackage rights income. Payment is due by February 15 each year and goes to the Highway Fund. Late payments accrue interest at prime plus 1%. Directors voting for the dividend are not liable under the cited statute.

Flood mitigation grants with admin cap

The law provides $20 million for local flood mitigation projects after Hurricane Helene. NC Emergency Management can keep up to 1.5% of program funds for administration. If program rules conflict with DRMF rules, the program’s rules control. These projects reduce flood risk for homes and roads in the affected area.

Guardrails and oversight for funds

Recipients must first seek insurance, federal aid, and, for non‑State entities and colleges, private donations. State money counts as excess over those amounts, and recipients must repay the State up to what the State paid if they later get those funds. Contracts must include these rules for subrecipients. Spending must preserve eligibility for federal aid and avoid paying costs likely covered by federal funds. Part II funds not spent or encumbered by June 30, 2030 revert. Programs must subtract any named allocation from a unit’s general grant. OSBM and the State Auditor must include these funds in required reports and the public dashboard.

Tourism help but reserve cuts

The law gives $10 million to boost Western NC tourism and community work: $5 million to Visit NC and $5 million to the Division of Community Revitalization. It also cuts $5 million each year in 2025–2027 from Community Revitalization reserves and $5 million each year from G.R.O.W. NC reserves. If House Bill 125 becomes law, the act repeals certain described reserve reductions.

Airport repair grants with strict rules

The state provides $25 million to fix and improve local airports in the Helene area. Only certain airports qualify: no passenger service, a 24/7 fuel truck, on‑site public mechanics, ability to open 24/7 during emergencies, and the county must give the State untethered access to any provided facility. Grants are capped at $5 million per recipient, and each county can receive no more than two grants.

Tuition help for storm-hit students

Students at community colleges in the disaster area get added help to stay enrolled. The law sends $2,473,971 to affected colleges that saw enrollment drop from 2023-2024 to 2024-2025. It also sets aside $1,163,029 for students to pay tuition, fees, and emergency costs that threaten their enrollment.

Parks and recreation recovery funds

The law provides $12.25 million for park and recreation needs in the affected area. 65% goes to state parks or forests, and 35% goes to local matching grants. The usual maximum grant cap does not apply to these dollars.

Admin funds to run NCEM programs

NC Emergency Management can use 0.5% of its allocations in this act, totaling $1,400,000, for administration. This pays to implement and operate the recovery programs created or funded by the law.

Flexibility to fund election operations

The State Board of Elections can use remaining previously allocated funds to run elections in the affected area. The money can cover equipment, technology, and staffing needs. This excludes funds transferred under the act’s subpart.

Longer time to repay water loans

Emergency bridge loans for water systems stay interest‑free. Loans now come due when the provider receives federal or State disaster aid, or by June 30, 2035, whichever is earlier.

New fund to fix high-risk dams

The law creates a Dam Safety Grant Fund run by DEQ. It gives grants to eligible dam owners to repair, modify, or remove dams damaged by disasters. DEQ uses FEMA’s High Hazard method to rank projects and can fund high‑hazard dams even without federal match. DEQ must report yearly on funded projects and federal dollars drawn.

New online disaster recovery portal

The state provides $3 million to build a disaster recovery portal. It brings key information and services into one place for people in the Helene‑affected area.

One-stop online disaster help portal

The IT Department must seek proposals to build a single disaster recovery portal. It will collect State and federal resources in one place, including FEMA and HUD. The portal must support case management and real‑time updates for affected residents.

State match for Lumber River repairs

The State transfers $20,000,000 in FY 2025–2026 to Robeson County to meet the State match for federal funding of the Lumber River Basin Coalition’s waterway restoration. The project addresses damage from Potential Tropical Cyclone #8 and Tropical Storm Debby. Any unspent money goes back to the State Capital and Infrastructure Fund for the original infrastructure purpose.

State adds $15 million for job sites

The State Controller transfers $15,000,000 in one-time money to the North Carolina Selectsite Fund for FY 2025-2026. The money follows the rules in S.L. 2023-134, Section 11.12. It can pay for public infrastructure and site work that support selectsite economic development projects, including needed work at nearby non-selectsite locations.

Emergency fund moves with limits

The Governor may use contingency and emergency funds for disaster relief and Guard training with Council of State agreement. The Governor may reallocate other State funds on a nonrecurring basis only if a state of emergency exists and other funds are insufficient. The Governor cannot use the specific funds in this act for budget adjustments or reallocations under the cited statutes.

Grants to repair and ready airports

The law creates an airport grant program run by NC Emergency Management. Local airports in the Helene area can get funds to repair damage and to boost emergency response capacity. Applicants for repair grants must first seek insurance and federal aid. Capacity projects must show how they improve emergency response. NCEM will prioritize airports with sufficient runway, storage, and staff capacity and will report every six months after applications open.

Priority rules for parks and water grants

For FY 2025–2026, state parks projects and State Water Infrastructure Authority grants prioritize applicants in HUD “most impacted” counties with 300,000 or fewer people (2023 counts). Applicants seeking priority must attest the project is due to Hurricane Helene and that the request is the unmet need after insurance and federal aid.

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