Crucial Hurricane Helene Relief Funding Stalled in NC

WNC --  WNC residents and other communities devastated by Hurricane Helene are facing continued uncertainty regarding vital recovery funds.

Millions, and potentially billions, of dollars in state and federal aid are currently in a state of legislative limbo within the North Carolina General Assembly, just days before lawmakers are set to break for the summer.

The deadlock centers on House Bill 1012 (HB 1012), a legislative package designed to address the extensive damage wrought by Hurricane Helene last September. This includes urgent needs for housing, infrastructure, school repairs, emergency services, and flood mitigation across Western North Carolina.

A Bill Divided: House and Senate Disagree on Aid's Direction

The path of HB 1012 illustrates the current impasse:

House Passes Initial Bill: The North Carolina House of Representatives, where Republicans hold a majority, initially passed its version of HB 1012 with unanimous support last month. This version notably included a provision for $60 million in direct grants to small businesses impacted by the hurricane, a measure intended to support their recovery and continued operation.

Senate Rewrites and Removes Key Funding: When the bill moved to the North Carolina Senate, also controlled by Republicans, it underwent a significant rewrite. On Monday evening, the Republican-led Senate unanimously passed their amended version of HB 1012. A key change in the Senate's version was the removal of the $60 million in direct grants for small businesses.

Stated Reasoning from Senate Republicans: Senator Ralph Hise (R-Mitchell), a primary proponent of the Senate's revised bill, cited concerns that direct state funding to private businesses, without a specific public benefit in return, could violate the North Carolina Constitution. Senator Hise has indicated he is exploring options for a constitutional amendment to allow such grants in the future, or for a federal program with a state match.

Points of Debate: This constitutional interpretation has been a point of contention. Democratic Senator Julie Mayfield (D-Buncombe) questioned this stance on the Senate floor, noting that the Senate's bill does allocate funds to other private entities, such as the Great Smoky Mountains Railroad, for hurricane-related repairs. Additionally, the Senate's version altered funding sources, reallocating approximately $560 million from existing transportation maintenance funds (known as Powell Bill funds) to support infrastructure rebuilding in Western North Carolina. This reallocation drew criticism from some Democrats, who argued it could negatively impact larger cities relying on those funds for their street maintenance.

House Rejects Senate's Changes: On Tuesday, the House of Representatives took a critical vote against accepting the Senate's amended version of HB 1012. Despite both chambers being led by Republicans, this vote indicates a fundamental disagreement over the specifics of the relief package, particularly the exclusion of direct small-business aid. The House's refusal to "concur" with the Senate's changes means the bill cannot advance to Governor Josh Stein for his signature.

Why the Impasse?

The current stalemate is rooted in these differing priorities and interpretations of funding. While both chambers, under Republican leadership, aim to provide hurricane relief, the method and recipients of that aid have become a point of contention. This disagreement is also occurring within the broader context of an ongoing, unresolved state budget negotiation between the House and Senate.

What's Next for Helene Relief?

With the House having rejected the Senate's amendments, House Bill 1012 now finds itself in a precarious position. The standard procedure for resolving such differences is the formation of a conference committee, a group of lawmakers from both chambers tasked with negotiating a compromise bill that can win approval from both the House and Senate.

However, time is running short as the General Assembly approaches its planned recess. The longer this disagreement persists, the longer wnc communities and other hard-hit areas must wait for crucial funding needed to rebuild and recover from Hurricane Helene's devastation. The path forward remains uncertain, and the urgency for a resolution continues to grow for those still reeling from the storm's impact.

WNCTimes

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