Federal red tape delays Helene recovery in western NC

RALEIGH, N.C. (WNCN) — One year after Hurricane Helene devastated western North Carolina, officials say billions of dollars in recovery remain locked behind federal red tape.

State officials call Helene the worst natural disaster in North Carolina history, leaving behind an estimated $60 billion in damages. Yet the state has received only $5 billion of the $23 billion requested from Washington, according to the Governor’s Recovery Office for Western North Carolina the agency leading coordination across recovery efforts.

“We need to make sure that we get adequate, flexible funding to continue to rebuild homes, to rebuild our infrastructure, revitalize our economy, and make sure that we can put our best foot forward for the decades to come,” said Grow NC Director Matt Calabria.

So far, crews have hauled away 16 billion cubic feet of debris, enough to circle the globe, according to Grow NC. All 13 state parks and nearly all state roads have reopened. But rebuilding tens of thousands of homes and businesses is far from complete.

Calabria said disaster recovery funding comes from three buckets: federal, state and private insurance. The federal government has sent $5 billion of the $23 billion requested by Governor Stein. The state has chipped in $3 billion, and insurance is covering about $7 billion. 

That leaves about $45 billion in unmet funding. 

“In addition to that, we are advocating for the release of funds that have already been appropriated for disaster recovery, but just have not, for one reason or another, been released by the federal agencies in a way that has happened at all or that we can use,” Calabria said.

So, what’s the holdup with the federal funds? 

Calabria pointed to changes under the Trump administration that created multiple new hurdles and red tape.

 “We have seen the institution of a second phase at the Department of Homeland Security level in which Secretary Noem has to sign off on every expenditure that FEMA makes over $100,000. And so that adds another layer. And then yet another layer we have experienced relates to those in what’s referred to as ‘defend spend,’ in which in many cases our folks have to re-upload paperwork that we have already provided to the federal government and that adds additional delays as well,” he explained.

Calabria also said federal support has been disproportionately low compared to other disasters. After Hurricane Katrina and Superstorm Sandy, the federal government covered about 75% of recovery costs. By comparison, Helene’s $23 billion federal request represents less than half the total damages, and so far, the state has only received about 9% of what’s needed.

But, Calabria said, it’s important to remember a massive disaster of this scale will take years to rebuild. 

“It’s not a sprint, it’s not a jog. It’s a really long sprint. But we’re in it for the long term,” Calabria said.