AN ACT TO PROVIDE ADDITIONAL APPROPRIATIONS AND EXTEND REGULATORY FLEXIBILITY FOR COMMUNITIES AND CITIZENS IMPACTED BY HURRICANE HELENE AND WILDFIRES. SL 2025-26. Enacted June 27, 2025. Effective June 27, 2025, except as otherwise provided.
DISASTER RECOVERY ACT OF 2025 - PART II.
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View NCGA Bill Details(link is external) | 2025-2026 Session |
AN ACT TO PROVIDE ADDITIONAL APPROPRIATIONS AND EXTEND REGULATORY FLEXIBILITY FOR COMMUNITIES AND CITIZENS IMPACTED BY HURRICANE HELENE AND WILDFIRES.Intro. by Appropriations.
Bill History:
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Wed, 21 May 2025 House: Reptd Fav. For Introduction(link is external)
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Wed, 21 May 2025 House: Filed(link is external)
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Wed, 21 May 2025 House: Rules Suspended(link is external)
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Wed, 21 May 2025 House: Passed 1st Reading(link is external)
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Wed, 21 May 2025 House: Cal Pursuant 32(link is external)
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Wed, 21 May 2025 House: Placed On Cal For 05/22/2025(link is external)
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Thu, 22 May 2025 House: Amend Adopted A1(link is external)
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Thu, 22 May 2025 House: Passed 2nd Reading(link is external)
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Thu, 22 May 2025 House: Passed 3rd Reading(link is external)
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Thu, 22 May 2025 House: Ordered Engrossed(link is external)
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Fri, 23 May 2025 House: Regular Message Sent To Senate(link is external)
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Tue, 27 May 2025 Senate: Regular Message Received From House(link is external)
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Tue, 27 May 2025 Senate: Passed 1st Reading(link is external)
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Mon, 16 Jun 2025 Senate: Withdrawn From Com(link is external)
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Mon, 23 Jun 2025 Senate: Reptd Fav Com Substitute(link is external)
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Mon, 23 Jun 2025 Senate: Com Substitute Adopted(link is external)
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Mon, 23 Jun 2025 Senate: Placed on Today's Calendar(link is external)
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Mon, 23 Jun 2025 Senate: Amend Adopted A1(link is external)
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Mon, 23 Jun 2025 Senate: Amend Adopted A2(link is external)
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Mon, 23 Jun 2025 Senate: Passed 2nd Reading(link is external)
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Mon, 23 Jun 2025 Senate: Passed 3rd Reading(link is external)
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Mon, 23 Jun 2025 Senate: Engrossed(link is external)
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Tue, 24 Jun 2025 Senate: Special Message Sent To House(link is external)
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Tue, 24 Jun 2025 House: Cal Pursuant 36(b)(link is external)
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Tue, 24 Jun 2025 House: Added to Calendar(link is external)
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Tue, 24 Jun 2025 House: Failed Concur In S Com Sub(link is external)
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Tue, 24 Jun 2025 House: Conf Com Appointed(link is external)
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Wed, 25 Jun 2025 Senate: Conf Com Appointed(link is external)
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Thu, 26 Jun 2025 House: Conf Com Reported(link is external)
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Thu, 26 Jun 2025 House: Added to Calendar(link is external)
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Thu, 26 Jun 2025 Senate: Conf Com Reported(link is external)
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Thu, 26 Jun 2025 Senate: Placed on Today's Calendar(link is external)
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Thu, 26 Jun 2025 Senate: Conf Report Adopted(link is external)
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Thu, 26 Jun 2025 House: Conf Report Adopted(link is external)
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Thu, 26 Jun 2025 House: Ordered Enrolled(link is external)
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Thu, 26 Jun 2025 House: Ratified(link is external)
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Thu, 26 Jun 2025 House: Pres. To Gov. 6/26/2025(link is external)
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Fri, 27 Jun 2025 House: Signed by Gov. 6/27/2025(link is external)
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Fri, 27 Jun 2025 House: Ch. SL 2025-26(link is external)
Bill Summaries:
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Bill H 1012 (2025-2026)Summary date: Jun 30 2025 - View SummaryAgriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Bill H 1012 (2025-2026)Summary date: Jun 26 2025 - View Summary
Conference report to the 4th edition makes the following changes. Makes clarifying, conforming, and organizational changes throughout.
Part II.
Subpart II-A.
Section 2A.1.
Increases the following funds that the State Controller (Controller) must reserve to the Hurricane Helene Disaster Recovery Fund (Helene Fund) funds transferred from the following for 2025-26: (1) Medicaid Contingency Reserve, from $428,526,115 to $476,512,736 and (2) the IT Reserve from $55,127,214 to $8,304,222.
Removes provisions: (1) transferring to the Helene Fund from other reserves $634,086,371 that are currently underutilized or underutilized and using a portion of those funds for multiple agencies and (2) specifying that these additional reservations, along with the reallocation of underutilized funds, provide for a total of $700 million in additional availability to the Helene Fund.
Section 2A.2.
Reduces the amount that the Controller is required to transfer from the specified agencies from $65,913,629 to $64,750,000. Removes the directive that the $1,163,629 from the Community Colleges System Office previously allocated for a tuition support program be transferred to the Helene Fund. Instead, directs that these funds be used for funding for students to pay for tuition, fees, and emergency expenses that impact a student's ability to remain enrolled.
Section 2A.3.
Increases the appropriations from the Helene Fund for 2025-26 from $480 million to $500 million. Increases the appropriation from the Helene Fund to the Department of Agriculture and Consumer Services (DACS), from $23 million to $63 million with the additional funds to be used as follows: (1) $25 million for the Agricultural Disaster Crop Loss Program (Program) established in Section 2D.1 of SL 2025-2, to be used as specified and (2) $15 million for the Streamflow Rehabilitation Assistance Program to be used in accordance with GS Chapter 139’s Article 6 in the affected area (defined). Appropriates $3 million to the Department of Information Technology (DIT) to develop the disaster recovery constituent portal required by the act. Reduces the appropriation to the Department of Natural and Cultural Resources (DNCR) for the Parks and Recreation Trust Fund from $20 million to $12.25 million. Prevents the NC Parks and Recreation Authority from imposing the maximum grant size with respect to these funds distributed to DNCR.
Reduces the funds appropriated to NCEM from $221 million to $208 million. Removes the $25 million allocated to units of local government for unmet needs. Increases the allocation earmarked to disburse grants to VOAD member organizations from $16 million to $18 million. Increases the allocation to the Ariel Assets Accessibility Grant Program from $15 million to $25 million.
Increases the allocation to the Office of State Management and Budget (OSBM) from $53 million to $96.25 million, with the following new allocations: (1) $70 million (was, $10 million) for the Hurricane Helene Local Government Capital Grant Program (LG Program), with $20 million to be given to Madison County (was, $15 million) and $250,000 to be used to implement and operate the LG Program and (2) $4.25 million to disburse grants to the six named grantees in the specified amounts to repair damage from Hurricane Helene. Removes $1 million allocated to the named food bank.
Removes $1 million allocated to the Department of Transportation’s (DOT) Rail Division to Great Smoky Mountains Railroad, LLC.
Increases the distribution to the Office of the State Fire Marshal (OSFM) from $16 million to $18 million. Changes the purpose of the distribution to distributing $50,000 grants to fire departments and rescue squads in the listed counties to be used to repair or replace equipment and facilities damaged by Hurricane Helene and to enhance wildfire response and preparedness. Prevents the grants from being used to fund staffing (was, for grants of up to $500,000 to small and volunteer fire departments and rescue squads in counties in the affected area, as specified).
Increases the distribution to the UNC Board of Governors from $5 million to $6 million, and now specifies they are to be provided to the named constituent institutions in the specified amounts.
Reduces the allocation to the Department of the State Treasurer for cash flow loans to local governments in the affected area from $100 million to $51.5 million.
Increases the estimated interest earned as of June 30, 2025, from the Needs-Based Public School Capital Fund from $39.6 million to $56.3 million and changes the purpose of the allocation to the Department of Public Instruction (DPI) so that $25 million is distributed to Yancey County for total rebuilds of public school infrastructure and buildings damaged by Hurricane Helene, with the remainder for the Capital Recovery Funds for the Public School Facilities Program.
Authorizes NCEM to use $1.4 million of the funds allocated to it for administrative purposes to implement and operate programs funded and established in this act.
Directs grant programs for units of local government that specifically allocate a portion of funds to a named unit of local government to account for and reduce that unit's otherwise allowable amount from the program.
Changes the citations of the act’s provisions that are repealed in its contingency repeal provisions, so that they conform to the act’s organizational changes.
Section 2A.4.
Removes $30 million reallocation of DOT funds for the DEM Tech Modernization Fund. Removes the specified DOT reallocation.
Reduces the recovery funds allocated to DOT from $560,161,418 to $298,161,418 to be used for cash flow and federal matching purposes for activities related to recovery from Hurricane Helene. Updates statutory cross reference.
Section 2A.5.
Removes provisions reenacting GS 124-18 (dividends required of State-owned railroad company) and appropriation to DOT for the FRRCSI Program. Reinstates the provision that required for each year of the 2025-27 fiscal biennium any State-owned railroad company that has trackage in more than two counties to issue an annual cash dividend to the State. Appropriates the dividend’s proceeds to DOT for: (1) 2025-26 for the three named purposes in the specified amounts and (2) 2026-27 to DOT for cash flow and federal matching funds in accordance with Section 2A.4, above.
Section 2A.6.
Removes provisions specifying that for the 2025-27 biennium: (1) except as provided in Section 2A.4(b) of this act, DOT must not reduce the funds allocated to State Aid to Municipalities (Powell Bill funds) and (2) Powell Bill funds must only be allocated to municipalities with a population of less than 150,000.
Instead, directs the Controller to transfer $15 million for 2025-26 from the Stabilization and Inflation Reserve to the NC Selectsite Fund to be used for the specified purposes.
Section 2A.7.
Directs the State Controller to transfer $20 million for 2025-26 of the funds allocated to the Department of Environmental Quality (DEQ) from the State Capital and Infrastructure Fund to Robeson County for State matching requirements for federal funding for the community-led Lumber River Basin Coalition waterway restoration project due to damage from Potential Tropical Cyclone #8 and Tropical Storm Debby. Specifies that remaining unspent funds appropriated under this section revert to the State Capital and Infrastructure Fund to be used for its original purpose if not used to draw down federal funds before the expiration of the federal deadline to receive those funds.
Subpart II-D.
Section 2D.1.
Increases the cap on grant awards under the Aerial Asset Accessibility Grant Program from $3 million to $5 million per eligible recipient.
Subpart II-F.
Reinstates provisions requiring DIT to issue a request for proposals for the development and creation of a disaster relief portal, focused on constituent engagement, that will operate as a central platform for relevant updates and constituent services in response to natural disasters occurring in the State.
Part III.
Section 3.1.
Adds a provision extending the statewide declaration of emergency issued by the Governor, until October 1, 2025, and specifies that the extension applies to the regulatory flexibilities under Section 1 of SL 2025-2, but has no effect on the Governor’s Executive Order No. 322 issued on October 16, 2024.
Section 3.3.
No longer requires the State Controller to transfer the interest earned as of June 30, 2025, from the Needs-Based Public School Capital Fund to the Department of Public Instruction for Capital Recovery Funds for the Public School Facilities Program.
Adds a provision amending Section 4C.7(j) of SL 2024-53, as amended, to now set Water Infrastructure Emergency Bridge Loans to mature upon the earlier of the receipt of federal or State disaster relief by the provider, or June 2035 (was, June 30, 2023).
Removes the provision that amended Section 1D.8 of SL 2024-57 by extending the expiration of the Tree Ordinance Restriction. Makes conforming changes to the number of the remaining bill sections.
Section 3.6.
Amends the provision that was in Section 3.1 to now only require State and local projects funded from the Parks and Recreation Trust Fund, and grants awarded by the State Water Infrastructure Authority from the State Drinking Water and Wastewater Reserve (was, 10 listed programs), to prioritize applicants from counties that (1) were designated by the US Department of Housing and Urban Development as the most impacted and distressed counties from Hurricane Helene and (2) have a population of 300,000 or fewer based on the specified population estimate.
Agriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Bill H 1012 (2025-2026)Summary date: Jun 23 2025 - View Summary
Senate amendments to the 3rd edition make the following changes.
Amendment #1 amends Section 2A.3 by increasing the amount appropriated from the Helene Fund by $15 million and increases the amount appropriated to OSBM by $15 million, with that amount to go to Madison County.
Amendment #2 adds the following new Section 3.6. Allows qualifying structures (as defined) to be demolished if approved by the Chief Financial Officer, Chancellor, and Board of Trustees of North Carolina State University. Requires such demolition work and activities that may occur with respect to qualifying structures to be done according to all applicable laws, regulations, rules, and ordinances, including without limitation, permitting requirements. Defines qualifying structures as up to three buildings (1) damaged as a result of Hurricane Helene; (2) with an assessment of the damage to, and subsequent condemnation of, the structures by the State Construction Office, Department of Administration; (3) owned by North Carolina State University; and (4) leased to Black Mountain Home for Children as the Swannanoa 4H Camp.
Agriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Bill H 1012 (2025-2026)Summary date: Jun 23 2025 - View Summary
Senate committee substitute to the 2nd edition makes the following changes.
Amends the act’s long title.
Part II.
Subpart II-A
Requires the State Controller to reserve to the Hurricane Helene Disaster Recovery Fund funds transferred from the following for 2025-26: (1) $104,964,059 from the State Emergency Response and Disaster Relief Fund, (2) $45,469,983 from the Federal Infrastructure Match Reserve, (3) $428,526,115 from the Medicaid Contingency Reserve, and (4) $55,127,214 from the Information Technology Reserve.
Identifies and transfers to the Helene Fund from other reserves $634,086,371 that is currently underutilized or underutilized and uses a portion of those funds for multiple agencies, as provided in this act. Specifies that these additional reservations, along with the reallocation of underutilized funds, provide for a total of $700 million in additional availability to the Helene Fund.
Removes the requirement that NCInnovation transfer back to the State, after consultation with, and in conformity with direction received from, the State Controller, $500 million, and related provisions.
Increases that amount that the State Controller must transfer to the Helene Fund from $69,350,000 to $65,913,629 for 2025-26 and removes the amount that was to be transferred for 2026-27. Amends where those funds are to come from by adding in an allocation of $1,163,629 from the Community Colleges System Office previously allocated for a tuition support program. Makes additional clarifying and technical changes. Requires that of the funds appropriated for that tuition grant program, $2,473,971 must be used instead for community colleges located in the affected area that experienced enrollment declines from the 2023-24 academic year to the 2024-25 academic year.
Increases the amount that is to be appropriated from the Helene Fund from $464,750,000 to $465 million and now appropriates those funds to the following: (1) $10 million to the Department of Commerce, to be used in the specified amounts for Visit NC to promote Western North Carolina tourism, and for operational expenses and staffing for the Division of Community Revitalization; (2) $23 million to the Department of Agriculture to be used in the specified amounts for the North Carolina Forest Service for wildfire assets and preparedness, and for the North Carolina Agricultural Manufacturing and Processing Initiative for grants for atmosphere-controlled projects in the affected areas; (3) $13 million to the Department of Environmental Quality to be used in the specified amounts for the Dam Safety Grant Fund for the repair, modification, or removal of dams damaged by Hurricane Helene, and for landslide hazard mapping in the affected area; (4) $20 million to the Department of Natural and Cultural Resources for the Parks and Recreation Trust Fund for eligible uses in the affected area, to be used as specified; (5) $8 million to the Department of Public Instruction to disburse as a competitive grant program to public school units to repair public school infrastructure or buildings damaged by Hurricane Helene in the affected area (requires units to have been denied insurance coverage and federal aid for the infrastructure damaged before receiving funds and caps grants at $500,000); (6) $221 million to the Division of Emergency Management of the Department of Public Safety (NCEM) to be used in the specified amounts for the Bridge Repair Program including reimbursement to persons and HOAs with qualifying projects, for nonfederal share for FEMA disaster recovery programs, to local governments in the affected area for unmet needs, for the Disaster Relief and Mitigation Fund for the Hurricane Helene Flood Mitigation Grant Program, for grants to any member organization of Volunteer Organizations Active in Disaster actively involved in actual and ongoing repair and reconstruction projects (includes reporting requirements), and for the Aerial Asset Accessibility Grant Program; (7) $15 million to the Office of the State Fire Marshal for grants of up to $500,000 to small and volunteer fire departments and rescue squads in counties in the affected area that qualify for Individual and Public Assistance Categories C through G to cover expenses incurred due to Hurricane Helene to purchase equipment or to make capital improvements to assist with readiness for future emergency response; (8) $38 million to OSBM to be allocated in specified amounts to the Town of Canton, to the Hurricane Helene Local Government Capital Grant Program, to the NC League of Municipalities, the NC Association of County Commissioners, and the NC Association of Regional Councils of Government for grants for technical assistance to local governments in the affected area with specified issues, and to the MANNA Food Bank, Inc.; (9) $1 million to the NC School for the Deaf to repair, replace, renovate, or construct buildings or infrastructure damaged by Hurricane Helene; (10) $1 million to the Department of Transportation (DOT), Rail Division, to Great Smoky Mountains Railroad, LLC, for recovery and repair of infrastructure damaged by Hurricane Helene; (11) $10 million to the Office of the Governor for the Governor's Recovery Office for Western NC; (12) $100 million to the Department of State Treasurer for cashflow loans to local governments in the affected area, consistent with the requirements of Section 4E.5 of SL 2024-53, as amended; (13) $5 million to the UNC Board of Governors to disburse grants to schools to repair, replace, renovate, or construct buildings or infrastructure damaged by Hurricane Helene.
Reduces by $5 million recurring in each year of the 2025-27 fiscal biennium the funds appropriated to the Future Building Reserves that have been transferred to the Department of Commerce, Division of Community Revitalization. Reduces by $5 million in recurring funds for each year of the fiscal year of the 2025-27 fiscal biennium the funds appropriated to the future Building Reserves that have been transferred to G.R.O.W. NC. Repeals these provisions if H 125 becomes law.
Reallocates the following previously appropriated funds to the DOT to now be used by DOT for cash flow and federal matching purposes for activities related to Helene recovery, as described: (1) $30 million from DMV Tech Modernization; (2) $28,161,418 from Unexpended Dorian Funds; (3) $50 million for State Aid to Municipalities (for the 2025-27 biennium); (4) $22.5 million for bridge preservation (for the 2025-27 biennium); (5) $22.5 million for pavement preservation (for the 2025-27 biennium); and (6) $21 million for the FRRCSI Program (for the 2025-27 biennium). Also allows DOT to use up to $270 million in Credit Balance Funds for those purposes. Requires DOT to use all future Credit Balance Funds for activities related to recovery from Hurricane Helene until recovery is completed. Sets out provisions governing the management of these funds and reporting requirements.
Removes the provision that required for each year of the 2025-27 fiscal biennium any State-owned railroad company that has trackage in more than two counties to issue an annual cash dividend to the State. Amends GS 124-18, which requires any State-owned railroad that has trackage in more than two counties to issue an annual cash dividend to the State by adding that the dividend must be deposited in the Freight Rail & Rail Crossing Safety Improvement Fund (FRRCSI) within the Highway Fund. Appropriates $4.6 million for 2025-27 from funds deposited according to GS 124-18 to DOT.
Specifies that for the 2025-27 biennium: (1) except as provided in Section 2A.4(b) of this act, DOT must not reduce the funds allocated to the State Aid to Municipalities (Powell Bill funds) and (2) Powell Bill funds must only be allocated to municipalities with a population of less than 150,000.
Subpart II-B
Removes the Hurricane Helene Economic Recovery Grant Program.
Removes the Farm Infrastructure Disaster Recovery Program.
Subpart II-D
Amends the purpose of the Aerial Asset Accessibility Grant Program so that grants can only be given to local airports, no longer allowing awarding grants to airfields. Changes the maximum grant amount from $5 million to $3 million.
Removes provisions related to the development and creation of a disaster relief portal.
Part III.
Requires that for the for the 2025-27 fiscal biennium, the following programs and funds, representing over $750 million in the base budget from competitive grant programs over the biennium, prioritize applicants from counties that (1) were designated, in whole or in part, by the US Department of Housing and Urban Development as the most impacted and distressed counties from Hurricane Helene and (2) have a population of 300,000 or fewer based upon the 2023 Certified County Population Estimates from the State Demographer: (1) Needs-Based Public School Capital Fund, (2) Community Health Grant Program, (3) State-Designated Rural Health Centers Support Grant Program and Rural Health Capital Grants Program, (4) Agricultural Water Resources Assistance Program, (5) Utility Account, (6) Rural Engagement & Investment Program, (7) state and local projects funded from the Parks and Recreation Trust Fund, (8) North Carolina Land and Water Fund, (9) grants administered by the North Carolina Arts Council, and (10) grants awarded by the State Water Infrastructure Authority from the State Drinking Water and Wastewater Reserves. Sets out information that applicants seeking funds form the above program must provide.
Amends the appropriations to the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund by removing district health departments from the entities eligible to apply for a loan or grant from funds appropriated to the Clean Water State Revolving Fund for decentralized wastewater treatment systems.
Requires the State Controller to transfer interest earned as of June 30, 2025, from the Needs-Based Public School Capital Fund established in Article 38B of GS Chapter 115C, estimated at $39.6 million, to the Department of Public Instruction for Capital Recovery Funds for the Public School Facilities Program.
Amends GS 166A-90 to allow the Governor to reallocate on a nonrecurring basis (was, just reallocate) other funds as may reasonably be available within the appropriations of the various departments when: (1) the severity and magnitude of the emergency so requires; (2) contingency and emergency funds are insufficient or inappropriate; (3) a state of emergency has been declared; and (4) funds in the State Emergency Response and Disaster Relief Fund are insufficient.
Extends the expiration of tree ordinance restrictions under SL 2024-57 until October 1, 2025.
Deletes the provision requiring State agencies and local governments to use the United States Army Corps of Engineers (USACE) to remove and clear debris and other detritus from lands and waterways from Hurricane Helene in the affected area prior to using contractors hired by the State of North Carolina unless the USACE is not able to service the area, including in an expeditious or efficient manner, then the State agency or unit of local government may use the State or private contractors.
Deletes the extension of the term of Water Infrastructure Loans under Section 4C.7(j) of SL 2024-53.
Agriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Bill H 1012 (2025-2026)Summary date: May 22 2025 - View Summary
House amendment to the 1st edition makes the following changes.
Part II.
Amends the use of the $76,250,000 appropriated from the Helene Fund to OSBM, so that the use of the $5 million allocated to the Office of State Budget and Management (OSBM), for grants to the NC League of Municipalities (NCLM) and NC Association of County Commissioners (NCACC) is amended as follows. Allocates grants of $2 million each to NCLM and NCACC and adds the NC Association of Regional Councils of Government as a recipient of a grant of $1 million. Specifies that the grants are for technical assistance on the specified topics to local governments that are in the affected area; also expands upon those topics to include disaster recovery funding. Adds that a local government that has received a separate allocation of federal aid through HUD for Hurricane Helene is not eligible for this funding.
Subpart II-B.
Changes the entity responsible for administering the Hurricane Helene Economic Recovery Grant Program from the Department of Commerce to the Department of Revenue; makes conforming changes. No longer requires that qualifying businesses under the grant program be in the affected area; instead, adds the requirement that the business be located in a county that qualifies for FEMA Public Assistance Categories C through G.
Part III.
Adds that the following are eligible for a loan or grant from funds appropriated in this act to the Clean Water State Revolving Fund for decentralized wastewater treatment systems: (1) local government unit or a nonprofit water corporation; (2) a Community Development Finance Institution or a nonprofit that provides financing assistance to homeowners to repair or replace decentralized wastewater systems in the State; and (3) a district health department.
Agriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Bill H 1012 (2025-2026)Summary date: May 21 2025 - View Summary
Part I.
Section 1.
Titles the act “The Disaster Recovery Act of 2025-Part II.” Declares act’s intent that its appropriations and allocations are for maximum amounts necessary. Directs that savings must be effected where the total amounts appropriated or allocated are not required to implement the act. Defines affected area as the counties designated before, on, or after the effective date of the act under a major disaster declaration by the President of the United States under the Stafford Act (PL 93-288) as a result of Hurricane Helene. Also defines Helene Fund (the Hurricane Helene Disaster Recovery Fund established in Section 4.1 of SL 2024-51), FEMA, HUD, NCEM (the Division of Emergency Management of the Department of Public Safety-DPS), NCSBE (North Carolina State Board of Elections), and OSBM (Office of State Budget and Management). Specifies that Part II applies to North Carolina counties in the affected area, unless otherwise provided. Sets forth findings concerning the wildfires that burned through Western North Carolina, including the March 26, 2025, gubernatorial state of emergency relating to those fires.
Part II.
Subpart II-A.
Section 2A.1.
Instructs NCInnovation to transfer $500 million back to the State after consulting with and upon the directions of the State Controller (Controller). Requires the Controller to facilitate the return of those funds and to deposit the money into the Helene Fund, as described. Specifies that the funds will remain unappropriated unless the NCGA approves the funds in the act or in subsequent legislation. Provides for investment of funds in the Reserves by the State Treasurer (Treasurer) in line with GS 147-69.1(d).
Repeals Article 76A of GS Chapter 143 (establishing NCInnovation) once the transferred funds have been returned to the State. Specifies that if Senate Bill 257, 2025 Regular Session, becomes law and contains a provision repealing Article 76A of GS Chapter 143, then the section is repealed.
Section 2A.2.
Directs the Controller to transfer $69.35 million for 2025-26 year and $4.6 million for 2026-27 year from the amounts that were previously appropriated or allocated to the agencies as set forth below:
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$45 million to the Department of Environmental Quality (DEQ) to be used in the specified amounts for the Water Infrastructure Emergency Bridge Loan Program, as described.
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$12.5 million to the Department of Public Instruction (DPI) previously allocated for lost compensation from school closures as described.
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$5 million to the UNC System Office for the repair and renovation of the described facilities.
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$2.25 million to the NC State Board of Elections (NCSBE) to conduct the 2024 General Election in the affected area.
Section 2A.3.
Appropriates $464.75 million for the 2025-26 year as follows:
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$55 million to the Department of Agriculture and Consumer Services (DACS) to be allocated in the specified amounts for the Farm Infrastructure Disaster Recovery Program Streamflow Rehabilitation Assistance Program, and the NC Forestry Service.
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$60 million to the Department of Commerce (DOC) for the Helene Business Recovery Grant Program (BRGP), as described in Subpart II-B below.
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$10 million to DEQ for the Dam Safety Grant Program, as described.
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$3 million to the Department of Information Technology (DIT) to develop the disaster recovery constituent portal as described in Subpart II-H below.
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$12.5 million to the Department of Natural and Cultural Resources (DNCR) for damage done to the State Parks System and local parks, libraries, and museums in the specified amounts.
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$10 million to the Department of Transportation (DOT), Rail Division for grants to the Blue Ridge Southern Railroad, LLC and Great Smoky Mountains Railroad, LLC in the specified amounts for the purposes described.
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$33 million to DPI in the specified amounts for two grant programs for damaged public school infrastructure.
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$165 million to NCEM in the specified amounts for a State match for federal program, Private Road and Bridge Repair Program, Aerial Asset Accessibility Grant Program, Disaster Relief and Mitigation Fund, and grants to VOADs.
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$10 million to the Housing Finance Agency for repair and preservation of existing rental units in specified areas.
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$5 million to the NC Community College System (System) for specified expenses for students that impact their ability to remain enrolled.
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$76.25 million to OBSM to be allocated in the amounts specified for the Hurricane Helene Local Government Capital Grant Program, for debris and sedimental removal, for grants to the specified Colleges and Universities to repair damage, and for grants to the NC League of Municipalities and the NC Association of County Commissioners for assistance to local governments.
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$18 million to the Office of the State Fire Marshal (OSFM) to distribute $50,000 grants to fire departments and rescue squads for equipment and facilities.
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$6 million to the UNC Board of Governors (UNC Board) in the specified amounts to the three described recipients for damaged buildings or infrastructure and for resiliency and hazard mitigation.
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$1 million to the NC School for the Deaf for damaged buildings or infrastructure.
Authorizes NCBSE to use the remaining funds allocated to it under Section 6.1 and 9.1 of SL 2024-51 (Helene Relief Package I) for conducting and staffing elections, including for equipment, technology, and other purposes necessary for operation, in the affected area.
Section 2A.4.
Requires any State-owned railroad company that has trackage in more than two counties to issue an annual cash dividend of 25% of the company’s income from the prior year’s trackage rights agreements to the State for each year of the 2025-27 biennium. Provides a due date of February 15 and accrual of interest at the annual rate of prime plus 1% if the payment is not made by then. Provides for immunity for the directors of any State-owned railroad company that vote for or assent to the dividend. Directs for the dividend to be deposited in the Highway Fund to be transferred to the Helene Fund to be used by DOT’s Rail Division to repair rail infrastructure, as described.
Subpart II-B.
Section 2B.1.
Establishes the Hurricane Helene Economic Recovery Grant Program (Program), administered by DOC, to ensure the economic viability of Western North Carolina in the aftermath of Hurricane Helene by providing a one-time grant to qualifying businesses in the affected area that meet the following four requirements: (1) is subject to State income tax, (2) has experienced economic loss of at least $25,000, (3) has been registered to do business in the State and actively engaged as such in the affected area for a minimum of two years preceding its grant application, and (4) has not filed or initiated a bankruptcy proceeding during the five years prior to its application for grant funding. Directs DOC to prioritize job retention, economic viability, and commercial stability within the affected area when awarding grants under the Program.
Requires DOC, along with the Department of Revenue (DOR) to verify an applicant’s economic loss. Provides for an application form developed by DOC. Requires funds to be awarded on a first-come, first-served basis. Sets the grant amounts as equal to the lesser of: (1) 25% of the qualifying business’s economic loss or (2) $75,000. Allows the grants to be used for working capital and normal business expenses consistent with the allowable use of loan proceeds under the Economic Injury Disaster Loan program of the Small Business Administration. Tasks DOC with developing guidelines on grant use. Authorizes DOC to retain up to 1.5% of the allocated funds for administrative expenses. Caps the amount of grants awarded at the amount allocated to the Program under the act. Contains a clawback provision so that if a recipient receiving a Program grant is ineligible for the grant, the recipient forfeits the assistance awarded and that it bears interest at the statutory rate set forth in GS 105-241.21 until repaid. Requires forfeited financial assistance that is not repaid to be recouped through a civil action by the Attorney General at the request of DOC. Conditions Program grants on the recipient maintaining operations for a minimum of one year following receipt of the grant. Directs DOC to clawback a proportionate amount for any portion of the one year the recipient does not maintain operations. Requires DOC to submit a report to the specified NCGA committee and division every six months on the Program on the matters described, starting May 1, 2026.
Subpart II-C.
Section 2C.1
Establishes the Hurricane Helene Local Government Capital Grant Program (LG Program), administered by OSBM to disburse grants to eligible local government or federally recognized tribe recipients in the affected area for capital projects in the affected area, as follows. Directs that the grants be used for capital projects to repair, renovate, or replace infrastructure damaged by Hurricane Helene. Specifies that the capital projects must be projects that have been denied eligibility for FEMA Public Assistance reimbursement. Instructs OBSM to prioritize grants to an eligible recipient with a population of 300,000 or fewer and that qualify for the specified FEMA Public Assistance Categories. Caps awards at the following percentages from the funds appropriated for the LG Program: (1) 20% to one county, including grants to local governments within that county; (2) 5% per eligible recipient; and (3)5% per zip code if that zip code only qualifies for the specified FEMA Public Assistance Categories. Requires OBSM to submit a report to the specified NCGA committees and divisions every six months on the LG Program on the matters described.
Subpart II-D.
Section 2D.1.
Establishes the Hurricane Helene Flood Mitigation Grant Program (Flood Program) to provide flood mitigation grants to units of local government and nonprofit organizations to undertake flood mitigation projects in the affected area from the funds appropriated in this act to NCEM for the Disaster Relief and Mitigation Fund (DRMF). Allows units of local government to also apply for engineering assistance grants. Limits use of funds from the Flood Program to: (1) four structural or nonstructural measures that reduce the risk of future damage from flooding and (2) for local governments, to identify and design shovel-ready projects related to flood mitigation. Caps grants at either (1) 10% to a single recipient or (2) 20% to a single county of the total funds allocated to the Flood Program. Specifies that grant recipients with be paid under a reimbursement model for costs incurred for eligible flood mitigation or engineering assistance grants. Allows NCEM to retain up to 1.5% of the funds appropriated for administrative expenses. Clarifies that to the extent the Flood Program’s requirements conflict with DRM requirements, the section of the act establishing the Flood Program controls.
Subpart II-E.
Section 2E-1.
Establishes the Farm Infrastructure Disaster Recovery Program (Farm Program) within DACS to repair, rebuild, and restore farm infrastructure damaged by Hurricane Helene. Defines farm infrastructure as fencing, greenhouses, barns, equipment, and farm roads, or other structures or improvements used for farming purposes. Directs DACS to open an application period of six months within 30 days of the section becoming law to allow persons in the affected area to apply for funds for these purposes. Requires applicants to verify to DACS that the losses were directly caused by Hurricane Helene. Allows DACS to audit the recipient’s financial and other records to ensure that the funds are used according to the Farm Program’s requirements; sets out further regulations governing these audits. Requires DACS to submit a report to the specified NCGA committee every six months on the Farm Program on the matters described, starting six months after the Farm Program opens. Sunsets the Farm Program 30 months after the section becomes effective. Specifies that any funds allocated to the Farm Program not expended or encumbered by that date revert to the Helene Fund.
Subpart II-F.
Section 2F.1
Establishes the Aerial Asset Accessibility Grant Program (AA Program), administered by NCEM to disburse grants to local airports and airfields in the affected area to (1) repair, replace, and restore the described infrastructure damaged by Hurricane Helene and (2) build and improve capacity for emergency preparedness and disaster response for future natural disasters and emergencies. Requires NCEM to consult with DOT if grant applications concern airport roads or other infrastructure, as necessary. Limits eligibility to persons or units of local government that own an airport that is either currently in operation or was in operation before Hurricane Helene and not currently operating due to damage from the hurricane and that also meet the four listed requirements. Requires grant applicants to pursue insurance and federal aid before applying for a grant. Instructs NCEM to prioritize applicants with facilities that demonstrate adequate runway capacity, storage capacity, and personnel that can substantially contribute to enhanced regional emergency and disaster readiness. These prioritized applicants must also be capable of facilitating access of various forms and sizes of aircraft providing adequate takeoff and landing clearance. Caps AA program grants at $5 million per recipient and two grants per county. Requires NCEM to submit a report to the specified NCGA committee and division every six months on the AA Program on the matters described, starting no later than six months after the AA Program opens.
Subpart II-G.
Section 2G-1.
Enacts GS 143-215.32B creating a special, nonreverting account known as the Dam Safety Grant Fund (Dam Fund) within DEQ to issue grants to eligible damaged dam owners for the described purposes. Directs DEQ to prioritize grants that serve as the State match to eligible projects based on the Risk-Based Prioritization Method established under the specified FEMA program. Allows funds to also be used for dams not eligible for federal match under the described FEMA program if the dam was damaged by a natural disaster and classified as high hazard. Requires DEQ to administer grants from the Dam Fund consistent with applicable State and federal laws. Requires DEQ to submit an annual report to the specified NCGA committee on the Dam Fund, as described.
Subpart II-H.
Section 2H.1.
Requires DIT to issue a request for proposals for the development and creation of a disaster relief portal, focused on constituent engagement, that will operate as a central platform for relevant updates and constituent services in response to natural disasters occurring in the State.
Subpart II-1.
Section 2I.1.
Finds that the described federal funds should be used expeditiously for repair and replacement of drinking water and wastewater infrastructure damaged by Hurricane Helene. Appropriates $685.613 million in federal disaster funding to be received by DEQ for the 2025-26 year as follows:
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$253.681million to the Clean Water State Revolving Fund (CWSRF) and $409.422 million to the Drinking Water State Revolving Fund to fund projects as described to eligible entities that were damaged, can demonstrate impact, or experienced a loss or disruption of a mission-essential function caused by Hurricane Helene.
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$22.51 million to CWSRF to improve the resilience of decentralized wastewater treatment systems to flooding, to assess the potential to connect homes served by decentralized wastewater treatment systems to centralized wastewater systems, and to fund such connections.
Part III.
Section 3.1.
Directs State agencies and units of local government to use the United States Army Corps of Engineers (USACE) to remove and clear debris and other detritus from lands and waterways from Hurricane Helene in the affected area prior to using contractors hired by the State unless the USACE is not able 1to service the area, including in an expeditious or efficient manner, then the State agency or unit of local government may use the State or private contractors. Applies to contracts entered on or after the section becomes law. Clarifies that the section does not apply to or impair existing contracts.
Section 3.2.
Extends the maturity date of the Water Infrastructure Loans established under Section 4C.7 of SL 2024-53 (Helene Relief Package II) from June 30, 2030, to June 30, 2040.
Part IV.
Section 4.1.
Directs that, except as otherwise provided, funds appropriated under the act revert to the Savings Reserve if not expended or encumbered by June 30, 2030.
Requires recipients of State funds under the act to use best efforts and take all reasonable steps to obtain alternative funds to cover losses or needs for which State funds are provided, including insurance funds. Requires institutions of higher education or non-State entities to seek private donations to help cover the losses or needs for which Sate funds are provided. Provides for notice to State aid recipients of this requirement. Requires recipients of alternative funds to remit the funds to the State agency from which the State funds were received not exceeding the amount of State funds provided to the recipient. Directs that any contract or other instrument entered into for the receipt of funds to include the alternate funds requirements set out above
Prevents the Governor from using the funds described in the act to make budget adjustments or reallocations. Direct the Governor to ensure that funds allocated in the act are expended in such a manner that does not adversely affect any person's or entity's eligibility for federal funds that are made available, or are anticipated to be made available, as a result of natural disasters and to avoid using State funds to cover costs that will, or likely will, be covered by federal funds. Requires OSBM to add the appropriations and allocations provided for in this act to the reporting requirements set forth in Section 4.1(g) of SL 2025-2 (2025 Helene Relief Package I). Requires the Governor to continue the reporting requirements set forth in Section 4.2 of SL 2025-2. Directs the State Auditor to include all funds appropriated and allocated under this act in its report to the described NCGA committees.
Part V.
Section 5.1.
Specifies that the headings to the parts and sections of the act are a convenience and do not expand, limit, or define the text of the act, except for effective dates referring to a part or section.
Section 5.2.
Contains a severability clause.
Section 5.3.
Effective when the act becomes law, except as otherwise provided.
Agriculture, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, Community Colleges System Office, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Environmental Quality (formerly DENR), Department of Information Technology, Department of Public Instruction, Department of Transportation, Office of State Controller, State Board of Elections, State Government, Executive, Local Government, Public Enterprises and Utilities, Transportation
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Committee substitute to the 2nd edition changed the long title. Previous long title was 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.