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.