Gov. Stein seeks $891M more for NC Helene recovery. What will NC lawmakers do?
North Carolina Gov. Josh Stein on Monday called for more than $891 million in additional state funding to cover Hurricane Helene recovery needs over the next six months.
The Democratic governor’s spending proposal came hours before House Republicans released their full budget proposal — which needs to be worked out with the Senate before it can become law.
House Republicans have said that they plan to release another Helene funding bill that they want to keep separate from the budget.
And within their budget, they called for transferring $500 million to a Helene reserve fund from NC Innovation, a nonprofit created to help UNC System researchers convert ideas into businesses.
Stein made his announcement in Union Mills at Carolina Domes, a luxury glamping business, and a recipient of the Western North Carolina Small Business Initiative grant, a public-private partnership designed to support small businesses impacted by Helene.
“Western North Carolina is coming back strong, but there is much more work to do,” said Stein, according to a news release by his office.
He said state lawmakers should provide more funding “so that the rebuilding and recovery efforts can continue as quickly and effectively as possible.”
Joining him were state Commerce Secretary Lee Lilley, local officials, and residents of Western North Carolina.
His proposal includes:
$260 million for economic recovery — supporting businesses, local governments and Western North Carolina’s tourism industry. This includes $50 million for business grants and $50 million for forgivable loans.
$239 million to repair schools, expand debris cleanup and invest in infrastructure.
$113 million for housing recovery and aid for families struggling with rent, mortgages, or utility bills
$105 million to restore farmland and waterways and fund wildfire prevention and response
$23 million for food insecurity and support to impacted community colleges.
$152 million for state matches to federal aid, communication and disaster system upgrades, and unmet recovery needs not covered by other sources.
This is Stein’s second Helene recovery proposal. His first, released in early February, requested $1 billion in funding on top of what had already been provided before he took office. He called for: $100 million for business recovery grants, $100 million for local government revenue replacement grants and additional funds for repairs for roads, bridges and other infrastructure.
So far, the state has appropriated about $1.4 billion in Helene recovery funding through multiple bills passed in late 2024 and 2025. The fourth and most recent bill, passed in mid-March, totaled over $500 million.
That legislation included funding for some of Stein’s recommendations but left out others — notably, grants for small businesses. Democratic lawmakers and businesses across Western North Carolina have repeatedly called for those grants — and not loans — to be included.
Starting point
Stein’s proposal is a starting point, as Republicans control the legislature.
Republicans hold a supermajority in the Senate, with two-thirds of the chamber. They are one seat short of a supermajority in the House. A dual-chamber supermajority would allow Republicans to override Stein’s vetoes on party-line votes. While Republicans don’t have full control, they hold significant sway over what is and isn’t included in Hurricane Helene recovery funding.
It appears likely that further Helene funding will be included in the state budget, which is still being developed.
The Senate approved its plan in mid-April. It calls for adding $700 million to a Helene reserve fund but not yet allocating most of the money. The proposal also sets aside millions more for future disasters or emergencies.
Federal dollars
The state estimates Helene caused nearly $60 billion in damage in North Carolina — roughly equal to the entire upcoming two-year state budget.
That makes it impossible for the state to cover the costs alone. Recovery depends on a mix of state, federal, and private dollars.
Republican lawmakers say it’s critical to be cautious, maximize federal aid, and ensure state and local governments are reimbursed for recovery work already completed. Many Democrats have called for action to be taken sooner, citing businesses shutting down and people being impacted severely.
Stein, in a letter to Senate leader Phil Berger and Hall,wrote that the seven months since Helene “is more than enough time to comprehend just how much was lost and how much work is needed to restore our beautiful western North Carolina.”
“In the face of so many unmet needs and the frustrations of so many residents and businesses, we must be bold. We need to commit to the people of western North Carolina that the state is with them for the long road to recovery,” he wrote.
The state has received about $1.45 billion in federal funding as of mid-April, according to Stein’s Helene proposal.
Millions have come from the Federal Emergency Management Agency, which has provided assistance for housing and other needs to people affected by Helene. But many towns say they haven’t seen any FEMA money for infrastructure repairs, The Charlotte Observer reported.
Another major pot of funding is expected soon. In late April, the U.S. Department of Housing and Urban Development approved a $1.4 billion disaster recovery block grant for North Carolina. The funds will support housing, infrastructure, and economic revitalization.
This story was originally published May 19, 2025 at 3:56 PM.
