General Assembly passes next Hurricane Helene relief bill, with more aid for public schools

Update, June 27 at 3:30 p.m. — Gov. Josh Stein signed House Bill 1012 into law on Friday afternoon.

“Nine months ago, Hurricane Helene devastated western North Carolina’s economy. Let’s make sure our neighbors know we haven’t forgotten them,” Stein said at an event encouraging tourism in western North Carolina. “We can support the region’s recovery just by showing up.”

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The General Assembly unanimously passed its fifth round of Hurricane Helene relief aid on Thursday, following disagreements about a mini budget spending bill and Helene funding priorities.

While the Republican-led General Assembly adjourned for at least two weeks without passing a budget for the new fiscal year — which begins July 1 — the House and Senate passed an updated version of House Bill 1012, “Disaster Recovery Act of 2025 – Part II,” before adjourning on Thursday afternoon.

The bill, which allocates $700 million to the Hurricane Helene Relief Fund and then appropriates $500 million from that fund, will now go to Gov. Josh Stein, who previously encouraged lawmakers to pass a relief bill even if they couldn’t pass a budget.

“The legislature should work quickly this week to set aside their differences and do their job to support folks rebuilding after Helene,” Stein posted on Tuesday. “I stand ready to get this sorely needed relief out the door.”

The 15-page relief bill “provides additional appropriations and extends regulatory flexibility for communities and citizens impacted by Hurricane Helene and wildfires.” Among other things, it extends the Hurricane Helene State of Emergency to Oct. 1, and provides or transfers funds to support recovery at state agencies, public schools, and colleges.

The bill says interest earned as of June 30, 2025 from the Needs-Based Public School Capital Fund — estimated at $56.3 million — will be allocated to the Department of Public Instruction (DPI). Of that, $25 million will go to Yancey County Schools “for total rebuilds of destroyed public school infrastructure and buildings damaged by Hurricane Helene.” An additional $31.3 million would go toward the Capital Recovery Funds for Public School Facilities Program.

HB 1012 would also allocate $8 million to DPI to disperse as competitive grants “to repair public school infrastructure or buildings damaged by Hurricane Helene.”

If Stein signs the bill, it will reallocate “unused and underutilized funds” allocated to the N.C. Community College System for the tuition grant program.

Approximately $2.5 million will “instead be used for community colleges located in the affected area that experienced enrollment declines from the 2023-2024 academic year to the 2024-2025 academic year.” An additional $1.2 million will “be used for funding for students to pay for tuition, fees, and emergency expenses that impact a student’s ability to remain enrolled.”

Here’s a look at other highlights in the bill:

• $208 million to The Division of Emergency Management (NCEM) for federal disaster assistance program matches, private road and bridge repair, and more.
• $70 million to the Office of State Budget Management for local government capital grants and repairs, including $20 million for Madison County and $16 million for the Town of Canton.
• $63 million to the Department of Agriculture and Consumer Services for the Agricultural Disaster Crop Loss program, among other programs.
• $51.5 million to the Department of the State Treasurer for cash flow loans to local governments in the affected area.
• $18 million to disperse in $50,000 grants to “fire departments and rescue squads to be used to repair or replace equipment and facilities damaged by Hurricane Helene and to enhance wildfire response and preparedness.”
• $12.25 million to the Department of Natural and Cultural Resources to repair and restore state parks and for matching funds to units of local government.
• $10 million to the Department of Environmental Quality for the Dam Safety Grant Fund.
• $10 million to the Office of the Governor for the Governor’s Recovery Office for Western NC.
• $6 million to the Board of Governors of the University of North Carolina System for repairs at Western Carolina University, Appalachian State University, and UNC-Asheville and the North Carolina Arboretum. 
• $5 million to the Department of Commerce to promote western North Carolina tourism.
• $3 million to create a disaster relief portal “that will operate as a central platform for relevant updates and constituent services in response to natural disasters occurring in the State.”
• $4.25 million for to disperse grants for repairs at the following private colleges: Lees-McRae College, Montreat College, Mars Hill University, Brevard College, Gardner-Webb University, and Lenoir-Rhyne University.
• $1 million to the North Carolina School for the Deaf in Morganton to repair, replace, renovate, or construct buildings or infrastructure damaged by Hurricane Helene.

The bill also allocates $685.6 million in water and wastewater treatment funds from the U.S. Environmental Protection Agency and reallocates nearly $300 million within the Department of Transportation budget for recovery needs.

Finally, it will also transfer $64.75 million in 2025-26 of unused funds to the Helene fund, including $12.5 million that was awarded to the DPI for lost compensation from school closures.

The bill did not include $60 million to the Department of Commerce for the Helene Business Recovery Grant Program for small businesses, which was included in the original version passed by the House but was struck down by the Senate. However, it did include funds for local government loans, which the House did not originally include.

In total, HB 1012 will put state spending for Helene at roughly $2 billion. Republican and Democratic lawmakers both said there are future investments yet to come.

“It addresses immediate needs,” Rep. Karl Gillespie, R-Cherokee, said of the bill. “It does not address all needs. There will be more to work on later.”

On Thursday, Stein said he was thankful for the passage of the bill — indicating he will sign it — but criticized lawmakers for adjourning without passing a budget.

“While I am gratified that the legislature took action to get more Helene funding out the door, we face many other urgent challenges across the state that need to be addressed through a fiscally responsible, full budget,” he said. “… I stand ready to work with the General Assembly to invest in our people and expand opportunities so every person can succeed.”