Part I.

Appropriates $582,229,750 from the Savings Reserve for 2025-26 to provide funds for unmet needs from Hurricane Helene in the specified amounts to:

1)      the Department of Commerce to: a) the Appalachian Community Capital Corporation in partnership with the Dogwood Health Trust for a grant program in accordance with Part III of this act, and b) the Rural Economic Development Division for the Creating Outdoor Recreation Economies (CORE) Program;

2)      the Housing Finance Agency for: a) affordable housing grants to units of local government in the areas affected by Hurricane Helene to incentivize high-quality, resilient, affordable housing. This funding may also be used to repair rental units and shelters for disaster victims; b) homeowner and renter unmet needs, including immediate minor repairs and needs that are not FEMA-eligible; c) mortgage and utility assistance; d) housing stabilization services and financial assistance for homeless populations;

3)      the Department of State Treasurer for grants to units of local government for revenue replacement;

4)      the Department of Natural and Cultural Resources for: a) the Parks and Recreation Trust Fund for State parks restoration and rebuilding grants; and b) the Land and Water Fund for flood abatement and water quality protection grants;

5)      the Department of Agriculture and Consumer Services to: a) the Division of Soil and Water Conservation for streambank stabilization and stream restoration; and b) food banks in the affected area; half of funds appropriated are to be used to buy food from local farms; c) the Forest Service for fire season preparation, including equipment and on-call and overtime pay; d) the Agricultural Development and Farmland Preservation Trust Fund for working farms and forest preservation; e) the North Carolina Forest Service for new hand crew units for wildfire risk reduction for one year of program operation; and f) the Community Conservation Assistance Program for stormwater control in the French Broad River watershed;

6)      the Department of Public Instruction for: a) each community college in the affected area for small business centers; and b) K-12 Summer Learning Programs to support 30 days of summer instruction in the affected area;

7)       the Office of State Budget and Management for: a) State agencies to continue operations and staffing, including The University of North Carolina System; b) Legal Aid of North Carolina, Inc., a nonprofit corporation, and Pisgah Legal Services, a nonprofit corporation, for disaster legal services for those affected by Hurricane Helene; and c) North Carolina independent colleges and universities in the affected area damaged by Hurricane Helene;

8)      the Department of Public Safety, Division of Emergency Management (NCEM): a) for resilience and backup power measures, including mobile solar and battery arrays; and b) to strengthen disaster financial and communications teams in NCEM's core capacity;

9)      the Department of Environmental Quality for: a) engineering and design work for dam removal projects funded by federal agencies; b) septic repair and replacement grants for those that suffered direct losses of eligible services and structures from Hurricane Helene; and c) recycling infrastructure and business grants for post-disaster cleanup services.

Part II.

Directs the Department of Revenue (Department) to create and administer the Hurricane Helene Business Recovery Grant Program, a program intended to help businesses that experienced economic or physical loss because of Hurricane Helene by providing one-time grants.

Establishes eligibility for the grant program, including businesses that (1) are subject to income tax under GS Chapter 105, Article 4; (2) experienced a reduction in sales tax collections as a result of Hurricane Helene when comparing fourth quarter sales from 2023 to 2024; and (3) are located within the affected area. Requires that the businesses must apply as specified by the Department. Mandates that the maximum grant amount is $75,000, and this amount will be reduced by any relief funding received from the state or federal government, Dogwood Health Trust, or the Appalachian Community Capital.

Outlines eligible uses for the grants as consistent with allowable uses of loans under the Economic Injury Disaster Loan program and the Business Physical Disaster Loan program of the Small Business Administration.

Caps the amount available for grants as the amount appropriated to the program under the act and directs the Department to proportionally reduce each grant award if the amounts requested exceed the amounts appropriated.

Allows the Attorney General to pursue clawback for grants awarded to businesses that are not eligible under the terms of the program.

Directs the Department to perform outreach to businesses that might be eligible in consultation with the Department of Commerce.

Allows the Department to retain 5% of the funds appropriated for the program for administrative expenses.

Part III.

Creates the Expanded Dogwood Health Trust Partnership Grant Program, a grant program administered by Appalachian Community Capital Corporation (Appalachian) in partnership with the Dogwood Health Trust. Awards grants to businesses for Hurricane Helene losses, prioritizing service-based businesses without significant taxable sales.

Establishes eligibility for the grant program as businesses that (1) are in the affected area; (2) have 50 or fewer employees; (3) have no more than $10,000,000 in revenue for the most recent taxable year; and (4) meet the qualifications for award of a Western North Carolina Small Business Initiative II grant from Appalachian as of February 10, 2025. Requires that the businesses must apply as specified by Appalachian. Mandates that all grants awarded must be matched by the Dogwood Health Trust on a one-to-one basis. Caps the grant amount at a maximum of $75,000.

Outlines eligible uses for the grants as consistent with a Western North Carolina Small Business Initiative II grant from Appalachian as of February 10, 2025.

Reserves $20,000,000 of the funds allocated for artists in the affected area. Caps the amount available for grants as the amount appropriated to the program under the act and makes grants available on a first-come-first-served basis.

Allows for clawback of grants paid to businesses that are not eligible in the name of the state.

Directs Appalachian to perform outreach to businesses that may be eligible for the grants in consultation with Dogwood Health Trust.

Permits Appalachian and Dogwood Health Trust to each retain 2% of the funds appropriated for the program for administrative expenses.

Part IV

Specifies that appropriated funds under the act will revert to the Savings Reserve if not expended or encumbered by June 30, 2027, and that all funds are to be spent in the affected area as defined in SL 2024-53, §1.4.

Outlines requirements for nonrecurring funds appropriated as directed grants under the act. Makes directed grants subject to GS 143C-6-23(b)-(k) and provides they may be paid out in a single payment if $100,000 or less, but must be paid in quarterly or monthly payments if over $100,000. Requires a state agency administering the grants to begin disbursement within 100 days after the act becomes law and requires the state agency to provide quarterly updates to the Fiscal Research Division on the status of funds disbursed under the act. Outlines requirements for the quarterly reporting.

Specifies that notwithstanding GS 143C-1-2(b), funds appropriated as directed grants will not revert until June 30, 2026. Requires that directed grants to nonprofits must be for nonsectarian, nonreligious purposes.

Effective July 1, 2025.