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FEMA Rejects NC’s Request for Full Reimbursement of Helene Recovery Costs: Implications Explained

FEMA Denies North Carolina Governor’s Appeal for Full Disaster Funding Following Hurricane Helene

NORTH CAROLINA (WLOS) — The Federal Emergency Management Agency (FEMA) has denied North Carolina Governor Josh Stein’s appeal to extend the 100% federal reimbursement for recovery expenses related to Hurricane Helene, describing the request as "unwarranted." The 100% cost share expired 180 days after September 25, leading to the state bearing 10% of the cleanup costs, which Stein estimates could be as high as $2 billion to restore roads and waterways in Western North Carolina.

Stein’s appeal, submitted after the initial denial on April 11, aimed to secure federal backing beyond the standard 180-day period—an extension that has been granted in past disasters like Hurricanes Ike, Maria, and Katrina. The denial means North Carolina taxpayers could face a burden of hundreds of millions of dollars, potentially impacting funding for local initiatives, such as small business grants.

Madison County Manager Rod Honeycutt expressed frustration over the need for additional documentation for work conducted post-reimbursement period. Meanwhile, Rep. Chuck Edwards praised the 90% federal contribution, noting it is above the typical federal share but acknowledged that it falls short of the needed 100%. Political analyst Chris Cooper commented on the difficult position Edwards faces, balancing support for his constituency and the Trump administration.

Stein claims the overall damage from Hurricane Helene is estimated at $60 billion, seeking $19 billion in disaster relief from Congress, alongside a nearly $900 million proposal to the North Carolina General Assembly. Recently, a bill for $464 million was advanced by the state House to the Senate, falling short of the necessary funding needed for proper recovery efforts.

In shifting leadership at FEMA, the agency recently replaced acting administrator Cameron Hamilton with David Richardson, raising questions about the agency’s future responsiveness in disaster management.

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