Helene recovery hindered by water funding gap
State officials and regional leaders warned that western North Carolina still faces a significant funding shortfall for repairs to damaged water infrastructure, even as long-term repairs along the Blue Ridge Parkway continue following destruction from Hurricane Helene.
Members of the Governor’s Recovery Office for Western North Carolina (GROWNC) gathered on March 6 at McDowell Technical Community College to review rebuilding progress across the mountain region. The advisory group coordinates recovery priorities across western counties and includes local officials, lawmakers, business leaders, and nonprofit representatives.
The meeting — held both in person and virtually — included monthly updates from state agencies, federal officials, philanthropic organizations, and regional leaders overseeing the recovery more than 17 months after the storm struck.
While officials pointed to progress in rebuilding roads, restoring tourism assets, and delivering disaster aid, they said repairing drinking water and wastewater systems remains one of the most expensive and complex challenges facing the region.
Water infrastructure recovery faces major funding gap
Officials from the North Carolina Department of Environmental Quality (NCDEQ) said that hundreds of millions of dollars have been directed toward infrastructure repairs, but requests from local governments far exceed available funding.
“We’re well on our way to over a billion dollars awarded to western North Carolina,” said Andy Miller, deputy secretary at DEQ. “But there is still a substantial unmet need.”
Flooding and landslides triggered by Helene damaged treatment plants, sewer lines, pump stations, and distribution systems across multiple mountain counties. Some communities continue operating with temporary repairs while awaiting permanent reconstruction.
State officials said three major funding streams are currently supporting recovery efforts:
- $75 million in emergency bridge loans to help local governments begin repairs while waiting for federal reimbursements.
- $27 million in state reserve grants were awarded earlier this year for construction projects tied to storm damage.
- $685 million in federal appropriations designated for the state’s water infrastructure revolving loan programs to support Helene recovery.
Through the first three rounds of funding, roughly $467 million has been awarded through the federal revolving loan program. Additional grants and bridge loans bring total water infrastructure funding directed to western North Carolina to about $569 million.
Local governments have submitted more than $1.3 billion in project applications, leaving an estimated funding gap of roughly $640 million even if all available funding is distributed.
Officials said many of the proposed projects combine basic repairs with resiliency upgrades designed to protect systems from future disasters.
The state’s bridge loan program has also drawn mixed participation. Some smaller municipalities have hesitated to take on debt because of uncertainty about reimbursements from the Federal Emergency Management Agency (FEMA).
DEQ officials suggested the North Carolina General Assembly could consider allowing loan forgiveness for portions of those loans not ultimately reimbursed through federal disaster aid.
Governor presses for federal funding
Gov. Josh Stein joined the meeting virtually to provide an update on ongoing negotiations in Washington over additional disaster aid.
Stein said he is advocating for $13.5 billion in additional federal recovery funding to support rebuilding.
“I’m encouraged, but encouragement doesn’t put food on the table,” Stein said. “We need actual funding, and we’re going to stay on this job until it’s done.”
The governor said he has met with White House officials and congressional leaders to push for the funding package.
“I’m sure you all saw that the president is now replacing former Secretary [Kristi] Noem with Sen. Markwayne Mullin as secretary of Homeland Security,” Stein said. “But regardless of who the secretary is, FEMA needs to act with greater urgency, approving and distributing funds for relief.”
Recent federal actions include $150 million in public assistance reimbursements and approval of 47 voluntary home acquisition projects under the Hazard Mitigation Grant Program (HMGP) totaling about $11 million, the governor said.
Blue Ridge Parkway repairs underway
Blue Ridge Parkway Superintendent Tracy Swartout said the parkway sustained extensive damage during Hurricane Helene, including 58 landslides across the route. By last fall, about 400 miles of the 469-mile parkway had reopened, though roughly 40 miles between Linville Falls and Mount Mitchell remain closed because of severe storm damage.
Swartout said the National Park Service has made steady progress restoring access. “By the end of this calendar year, the Blue Ridge Parkway will be open again,” she said.
The parkway alone sustained about $1.7 billion in damage to infrastructure, historic structures, and natural resources. Recovery efforts include rebuilding roads, repairing trails, clearing debris, stabilizing streams and wetlands, restoring historic buildings, and reducing wildfire risks caused by storm-damaged forests.
Tourism losses continue to strain local economies
Local leaders warned that tourism losses are continuing to strain mountain economies while key travel routes and attractions remain partially inaccessible. Van Phillips told the advisory group that businesses in Mitchell County are seeing significant declines in visitation, noting that one of the county’s top hotels is down about 50%. “This is a big part of our economy,” he said.
Phillips urged the National Park Service to maintain clear communication about closures and detours so communities can better promote tourism while repairs continue.
Philanthropy filled early recovery gaps
Advisory group members also discussed the role private philanthropy has played in early recovery efforts. More than $1.4 billion in philanthropic and private support has flowed into western North Carolina since the storm.
The Community Foundation of Western North Carolina alone has distributed more than 530 grants through its emergency disaster relief fund, supporting housing repairs, food distribution programs, and other recovery services.
Recovery expected to take years
Despite visible progress, officials emphasized that rebuilding western North Carolina will take years. Billions of dollars in damage remain to be addressed, and hundreds of infrastructure projects are still in planning or construction.
“The scale of this disaster is staggering,” Stein said. “But we’re going to keep pushing forward until these communities are fully recovered.”
“Helene recovery hindered by water funding gap” was originally published on www.carolinajournal.com.
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