NC Newsline - North Carolina will appeal FEMA’s decision to end their 100% cost-share for Hurricane Helene debris cleanup and emergency services, Gov. Josh Stein said Monday.
“We were granted 30 days to appeal, which we will surely do,” Stein said during a Monday meeting of his advisory committee on western North Carolina.
All categories of FEMA assistance will return to a 90% cost-share in the state — a 10% decrease for debris cleanup and other emergency work. The governor’s office estimates that the portion of costs no longer covered by FEMA totals around $200 million, though that figure could change.
The “uncertain” future of FEMA under the Trump administration, Stein added Monday, combined with the president’s tariffs, would likely further complicate recovery in the mountains.
“The only thing we know for sure is the costs of recovery are going to go up, potentially dramatically,” said Stein, a Democrat.
President Donald Trump has put a 90-day pause on the vast majority of planned tariffs that had spurred chaos in the global markets. But he kept a 10% rate on all nations except China, and has floated additional tariffs on specific industries.
The resulting increased costs on materials are likely to be felt in western North Carolina, where rebuilding has already cost billions and is expected to take years.
“I continue to urge Congress and the White House to appropriate additional funds at a meaningful level,” Stein said.
FEMA: Less cost-sharing, canceled programs and slow-moving cash
FEMA’s decision Friday canceled the agency’s agreement to reimburse the state for 100% of costs on removing debris and emergency services.
It is far from a total departure of the agency from western North Carolina — federal money and resources continue to flow into the region. But the ruling does represent yet another Washington-based hurdle for state officials to find a way around as they try to rebuild.
FEMA’s recent decision to end a grant program focused on building resilient infrastructure will result in around $184 million in losses for North Carolina. Matt Calabria, who leads the governor’s task force for Helene recovery, said it ranked eighth among states using the program’s money.
“Those are not immediate repairs,” Calabria said Monday. “And that is an impact for us going forward.”
In a statement announcing its shuttering, a FEMA spokesperson called the program “wasteful” and “ineffective,” and said it prioritized “political agendas.” Any unsent money for the program will be clawed back by the federal government.
The agency has not made a public statement on its denial of cost-sharing in North Carolina as of Monday.
Calabria said an additional $150 million in disaster aid had been pledged by FEMA but has yet to be sent.
“Reimbursements have been slow to come through,” he said.
FEMA and state officials are communicating “almost on a daily basis” as they work to get money flowing to the region, where local governments are facing fiscal cliffs due to damages and lost revenue.
Since Hurricane Helene hit last fall, FEMA has provided more than $439 million in public assistance to the state, and $422 million has been sent directly to households.
