The grant approval focuses on long-term rebuilding and are considered “last resort” funds after other recovery sources have been tapped.
RALEIGH, N.C. — North Carolina’s Action Plan to help western North Carolina rebuild in the wake of Hurricane Helene has officially been approved by the federal Department of Housing and Urban Development (HUD).
Gov. Josh Stein made the announcement Friday afternoon, saying the $1.4 billion grant was greenlit by the agency.
“This is great news for western North Carolina,” Stein said in a statement. “I thank the Trump Administration for moving quickly to approve this plan so we can get busy rebuilding people’s homes.”
The announcement from Stein’s office said approval for the plan was required for North Carolina to receive federal funds from what’s called the CDBG-DR grant award, which was first announced in January. The office said once HUD certifies the state’s financial controls for the program, the grant agreement can be signed and funds can be committed to housing and economic revitalization.
“We’ve learned so much from the many people and organizations that have taken time to offer their suggestions, and I’m grateful for everyone’s participation so far,” said NC Department of Commerce Deputy Secretary Stephanie McGarrah in a statement. “We know the road to full recovery will be a long journey, but the Department of Commerce and my team are ready to get to work.”
Stein’s office noted that CDBG-DR grants focus on long-term rebuilding as opposed to immediate shelter needs. The funds are considered “last resort” funds to be used after other recovery sources, like private insurance, have been tapped. These grants address unmet needs tied to housing, infrastructure and economic revitalization. North Carolina’s Helene Action Plan proposes that most funds go to housing recovery for low- and moderate-income residents.
The approval of the grant from HUD comes as Stein continues to appeal FEMA’s denial of a 100% cost-share federal reimbursement for disaster recovery costs. Stein learned about the FEMA denial while he visited the town of Newland earlier this month to meet with residents who had lost their homes. He said the denial letter cited that an extension was reportedly “not warranted”.
Gov. Stein condemned the decision and called on President Trump to intervene, emphasizing the devastating financial impact the denial could have on North Carolinians—especially those in the western part of the state who are still reeling from the storm’s damage.
Preliminary estimates suggest FEMA’s decision could cost the state roughly $200 million.
North Carolina leaders argue there is precedent for FEMA to grant such extensions. During President Trump’s first term, FEMA extended 100% federal cost-sharing for Hurricane Maria recovery efforts in the U.S. Virgin Islands and Puerto Rico to 12 and nine months, respectively. Similarly, long-term federal cost-sharing was extended following Hurricanes Katrina and Ike in Louisiana, Mississippi, and Texas.
