Raleigh, N.C. – Hurricane Helene has left a historic trail of devastation across western North Carolina, with early estimates placing the damage and recovery costs at a record $53 billion, according to a statement released by Governor Roy Cooper’s administration on Wednesday.
The state budget office compiled the figure, which includes both direct and indirect damages, as well as anticipated investments to prevent future disasters of similar magnitude.
In a press briefing, Governor Cooper underscored the unprecedented nature of the storm, noting that the previous record for storm-related damage in the state was $17 billion from Hurricane Florence, which struck eastern North Carolina in 2018.
“Hurricane Helene is without question the deadliest and most destructive storm North Carolina has ever faced,” Cooper said. He revealed a $3.9 billion funding request to the General Assembly, which he described as a “down payment on western North Carolina’s future.”
State officials reported 96 fatalities due to Helene, which brought record-breaking rainfall and severe flooding to the mountainous region in late September. The storm caused an estimated 1,400 landslides, severely damaged more than 160 water and sewer systems, and destroyed or impaired over 6,000 miles of roads, 1,000 bridges and culverts, and 126,000 homes. The state budget office projects that 220,000 households will apply for federal aid.
“This staggering damage figure highlights the long road ahead in this recovery process,” Cooper said.
The governor’s report and spending request were released just one day before the Republican-led legislature was set to convene for a special session to address additional recovery efforts related to Helene. Two weeks prior, lawmakers approved a $273 million relief package that also provided flexibility to state agencies and election officials in 25 western counties. Thirty-nine of North Carolina’s 100 counties are part of the federally declared disaster zone.
North Carolina’s financial reserves include several billion dollars available for recovery spending, including nearly $4.5 billion in the state’s savings account. However, legislative leaders had not disclosed specific plans for the upcoming session by late Wednesday. Senate leader Phil Berger’s spokesperson, Lauren Horsch, confirmed that lawmakers were still reviewing the governor’s request.
Cooper’s request comes with a projection of $48.8 billion in damages and an additional $4.8 billion for anticipated mitigation costs. The budget office estimates that federal agencies will cover $13.6 billion, while private sources and other funding will account for $6.3 billion. However, State Budget Director Kristin Walker cautioned that much of the damage will never be fully recovered, as many homeowners and farmers in the affected areas lacked insurance coverage.
A report from the Federal Emergency Management Agency (FEMA) found that close to 93% of homes affected by flood damage were uninsured, further exacerbating the financial strain on affected residents. Similarly, farmers with crop losses due to Helene are expected to receive little compensation, as few had crop insurance.
To address the economic fallout, Cooper’s plan includes $475 million for a two-phase recovery initiative targeting businesses in the hardest-hit areas. In the first phase, businesses can apply for grants ranging from $1,500 to $50,000, with a second phase offering grants of up to $75,000.
Other significant portions of Cooper’s request include $289 million in matching funds to secure federal money for utility repairs and debris removal, $225 million in grants for uninsured farmers, and $100 million for capital needs at public schools and community colleges.
In addition, Cooper is requesting $325 million to support immediate repairs for homeowners and renters, pending the availability of federal funds for a larger rebuilding initiative. The administration noted that federal community development block grant funds took nearly two years to arrive after both Hurricane Florence and Hurricane Matthew in 2016, delaying crucial home repairs.
The governor’s proposal also seeks $175 million to cover remaining home repairs from Matthew and Florence. Cooper’s administration attributes the funding shortfall to rising construction costs, labor shortages, the COVID-19 pandemic, and a smaller-than-expected federal appropriation.
However, the request for additional Florence and Matthew recovery funds drew criticism from Republican legislative leaders. Senate leader Phil Berger and a colleague issued a statement Wednesday, denouncing the timing of the $175 million request and pointing to it as evidence of mismanagement within the state Office of Recovery and Resiliency. The senators announced plans for an oversight committee to investigate the matter next month.