North CarolinaHB 472025-2026 SessionHouseWALLET

AN ACT TO ENACT THE DISASTER RECOVERY ACT OF 2025 – PART I.

Sponsored By: John R. Bell, IV (Republican), Dudley Greene (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 15 benefits, 3 costs, 4 mixed.

Help fixing private roads and bridges

The state provides $100 million to repair or replace private roads and bridges damaged by Helene. Priority goes to the only way in or out of lived‑in homes and other key sites. If an HOA owns it, the State pays no more than 50%. The State seeks federal money first and does not take ownership. NCEM may use up to 2% for administration and must report yearly.

More funding and faster homeowner repairs

The law puts $120 million into a new home repair and rebuild program that follows HUD rules. DCR must brief lawmakers by March 31, 2025 before taking applications. The state also moves $121 million and $96 million to finish Hurricane Matthew and Florence homeowner projects. NCORR must start 88.5% of projects by May 1, 2025, 90% by June 1, and 91.5% by July 1. Unawarded projects must fall to 100, then 70, then 40 on those dates. NCORR must report weekly and within five business days of each deadline. NCORR must also work with the Housing Finance Agency to pull in extra funds for unmet homeowner needs.

Big farm relief for 2024 losses

The state creates a 2024 Agricultural Disaster Crop Loss Program with $300 million total. $200 million is for verifiable Hurricane Helene losses; $100 million is for other 2024 farm disasters. Farmers must show verified losses. The Department can use up to 1% for admin. The program ends 30 months after it takes effect, and any leftover money goes back to the disaster reserve.

Moves disaster funds and sets deadlines

The state moves $299 million into the Hurricane Helene Disaster Recovery Fund. All unspent money left in the Hurricane Florence Fund on enactment moves to the Savings Reserve. Part II funds must be spent or encumbered by June 30, 2030, or they revert to the Savings Reserve. NCORR funds revert on October 1, 2026 if not used. The law also repeals the Office of Recovery and Resiliency statute effective October 1, 2026.

Recovery learning for grades 4–8

The law funds a School Extension Learning Recovery Program after the 2024–25 year for grades 4–8 in 13 mountain counties (Ashe, Avery, Buncombe, Burke, Haywood, Henderson, Madison, McDowell, Mitchell, Rutherford, Transylvania, Watauga, Yancey). Students get at least 72 hours of in‑person instruction with meals and transportation. Schools give start and end tests and share results with next year’s teachers. Students not yet proficient in reading or math get first priority, and parents must consent. The state provides $9 million: up to $200,000 for tests, $20,000 per participating unit, and the rest by average daily membership; unused money reverts October 15, 2025.

Retired state workers can return sooner

TSERS retirees with retirement dates from April 1, 2024 to February 28, 2025 need only a one‑month break before returning to certified Helene recovery jobs. Work and pay from September 25, 2024 until the rule expires do not count against the six‑month separation if the job is certified as needed for recovery. Law enforcement retirement benefits are not affected.

School calendar relief and pay protection

Public school units in the 13 listed mountain counties may count up to 10 missed days from Dec 2024–Feb 2025 as completed, make them up, or use both options. Employees and contractors are paid as if they worked on any missed days the unit deems completed. DPI may use its available funds to pay school nutrition staff for days normally covered by meal receipts or federal funds and must prioritize the highest‑need units if funds fall short. By May 1, 2025, DPI reports missed days, deemed‑complete days, makeup days, and any compensation provided.

Grants to fix small business infrastructure

The law sets up a $55 million Small Business Infrastructure Grant Program. Local governments can get grants to fix storm‑damaged water, sewer, gas, telecom, broadband, electric, sidewalks, and curbs that block small business access or operations. Grants are first‑come, first‑served, with a 10% cap per county. The Department of Commerce may use up to 1.5% for admin.

Rule relief for damaged funeral homes

If a funeral home’s preparation room is damaged by fire, weather, or disaster, the Board can suspend some rules for up to two years. The business must still meet other State and local requirements. A court can extend relief beyond two years up to three years from the loss, or one year from the court order, whichever is greater. The Board may adopt rules to carry this out.

Tighter oversight and faster reimbursements

The Governor must protect eligibility for federal disaster funds and avoid paying costs likely covered by federal aid. Starting May 15, 2025, the budget office sends quarterly reports on program spending and county totals. The Governor must send disbursement documents to the State Auditor within 15 business days, then weekly after each payout. The Auditor must run audits and keep a public dashboard comparing appropriations to spending. NCDOT must hire a contractor to file for FEMA/FHWA reimbursements and send monthly itemized reports. The Governor cannot shift these funds using certain budget authorities.

More help to clear debris and rebuild

The state provides $20 million for unmet debris and sediment removal needs. Agencies can use inmates to clear storm debris along public roads. The Department of Administration must loan heavy equipment and vehicles to local governments and VOAD members for five years, then title transfers to the borrower. VOAD members may also buy heavy equipment under state contracts for recovery work. NCEM gives $10 million in grants to active VOAD groups doing repair and rebuilds.

Road rebuilds add broadband; utilities handle easements

For road projects a quarter‑mile or more, builders must work with broadband providers to install cable during construction. If a temporary broadband backbone was used, builders must help make it permanent when data shows it is most cost‑effective. DOT and local governments must allow needed underground broadband in rights‑of‑way. Utilities must obtain the easements needed for pole and transformer work.

Must seek and return duplicate funds

If you receive State disaster money, you must try to get other funding first, like insurance or federal aid. If you later get other money for the same costs, you must return it to the State agency, up to the State amount you received. Contracts for State funds must include these seek‑and‑return rules. Returned money goes to the State’s Savings Reserve.

Easier home rebuilds and code delay

Owners in the affected area may rebuild nonconforming homes on the same footprint for the same use. Work must follow flood rules and other federal and local rules as much as possible. You cannot file pole‑or‑transformer work trespass claims during the statewide emergency and for one year after. The time to sue is extended by that period, and interest accrues from the repair date. The 2024 State Building Code takes effect 12 months after certification that it is published and the Residential Code Council is fully formed.

Farm disaster aid: rules and payments

To apply, file USDA Form 578 or the State form within 45 days of the section’s start. Nurseries, fruit trees and bushes, and specialty crops can get one 45‑day extension if requested in time. You must sign an affidavit under penalty of perjury. Payments use acres, county loss estimates, and USDA averages. The State sets aside funds for nursery, bush, tree, and specialty losses, and pays the filer of the form. Money must cover farm costs and recovery and is taxable under federal and State law. The Department may audit you and require receipts, ownership details, insurance payouts, and signed records. If you were ineligible or reported inaccurate facts, you must repay with interest set by law, and the State can sue. If you list it on your application, funds may also cover Helene debris, streambank, stream, and cropland restoration.

Emergency extended and recovery rules kept

The statewide emergency stays in effect until June 30, 2025. The law keeps earlier Helene emergency flexibilities in place until the emergency ends, such as permit, inspection, and housing‑related waivers. These extensions are retroactive to March 1, 2025, unless retroactivity is barred by law.

Fewer paperwork rules for PAs, NPs

The Medical and Nursing Boards stop enforcing certain review and quality plan rules for PAs and NPs in the affected area. Volunteer providers in the area do not need to file applications or pay fees. This does not apply to surrendered or suspended licenses. These waivers end one year after the Governor’s emergency order.

Short-term rent help after Helene

Counties get $1 million to help renters in affected areas, effective October 25, 2024. Your income must be at or below 200% of the federal poverty level. You can receive up to two payments. Each payment can be up to the local two‑bedroom fair market rent. Counties may use up to 5% for administration. Help targets housing crises like imminent eviction.

Grants for volunteer fire departments

The law provides $10 million to the State Fire Marshal for grants to small and volunteer fire departments in eligible counties. Each grant can be up to $500,000. Up to $250,000 of the total can cover admin costs.

Tourism ads to bring visitors back

The state gives $4 million for media campaigns to draw tourists back to impacted areas. A nonprofit runs the ads with the Department of Commerce and works with DOT to highlight open roads and Blue Ridge Parkway segments.

Cuts to disaster SNAP funding

The law reduces Disaster SNAP funding by $4 million and moves it to tourism media campaigns. This lowers State disaster grocery aid funding.

Temp school staff lack retirement and leave

Schools hire recovery program teachers and staff as temporary contract workers. They are not treated as State employees for retirement. They do not earn retirement service credit or paid leave during the program.

Sponsors & Cosponsors

Cosponsors

Jonathan L. Almond
Republican • House
Brenden H. Jones
Republican • House
Jennifer Balkcom
Republican • House
Brian Biggs
Republican • House
Hugh Blackwell
Republican • House
Jerry "Alan" Branson
Republican • House
Deb Butler
Democratic • House
Celeste C. Cairns
Republican • House
Grant L. Campbell, MD
Republican • House
Carson Smith
Republican • House
Allen Chesser
Republican • House
Mike Clampitt
Republican • House
Bryan Cohn
Democratic • House
Tricia Ann Cotham
Republican • House
Blair Eddins
Republican • House
Karl E. Gillespie
Republican • House
Pricey Harrison
Democratic • House
Chris Humphrey
Republican • House
Cody Huneycutt
Republican • House
Frank Iler
Republican • House
Jake Johnson
Republican • House
Kyle Hall
Republican • House
Keith Kidwell
Republican • House
Ya Liu
Democratic • House
Donnie Loftis
Republican • House
Carolyn G. Logan
Democratic • House
Jeffrey C. McNeely
Republican • House
Charles W. Miller
Republican • House
Marcia Morey
Democratic • House
Ben T. Moss, Jr.
Republican • House
Howard Penny, Jr.
Republican • House
Ray Pickett
Republican • House
Larry W. Potts
Republican • House
A. Reece Pyrtle, Jr.
Republican • House
Timothy Reeder, MD
Republican • House
Dennis Riddell
Republican • House
Stephen M. Ross
Republican • House
Paul Scott
Republican • House
Mitchell S. Setzer
Republican • House
Larry C. Strickland
Republican • House
Brian Turner
Democratic • House
Steve Tyson
Republican • House
Bill Ward
Republican • House
Harry Warren
Republican • House
Diane Wheatley
Republican • House
Donna McDowell White
Republican • House
David Willis
Republican • House
Matthew Winslow
Republican • House