State Officials Warn of Potential Funding Setbacks for Rebuilding Efforts
In a stark warning to state lawmakers, key officials in North Carolina’s recovery efforts from Hurricane Helene have stated that critical federal funding for housing could be delayed until the fall of 2025. This delay, which could push back plans for permanent housing in western North Carolina, is becoming a growing concern for residents and lawmakers alike.
Jonathan Krebs, Gov. Josh Stein’s advisor for western North Carolina, testified before the legislature on January 29, 2025, expressing deep concerns over the delayed timeline for federal funds from the U.S. Department of Housing and Urban Development (HUD). Krebs explained that the money, which was expected to help rebuild homes and provide permanent housing solutions, may face setbacks that are largely outside of the state’s control.
“If we are going to build this summer and start the work on permanent housing, we’re going to have to come up with some creative solutions,” Krebs said, making it clear that the funding issues were becoming increasingly critical as temporary housing options for thousands of families continue to dwindle.
The potential delay in federal funding could extend the wait for permanent housing solutions for thousands of North Carolinians, many of whom are still living in temporary shelters after the hurricane. The delay means that some families could face yet another winter in temporary accommodations before permanent housing becomes available.
The Strain of the Recovery Process
Currently, about 2,600 households are living in temporary shelters across western North Carolina. For many, the hope of returning to stable, permanent homes this year could slip further into the future. This situation has led state officials to discuss the possibility of securing alternative funding, but with mixed reactions from lawmakers.
Rep. Mark Pless (R-Haywood) voiced his frustration during the legislative hearing, saying, “We’re all adults in the room. Tell us how much money you need.” Pless emphasized that the recovery efforts needed to pick up speed and that delays were unacceptable, given the devastation caused by the hurricane. He also pointed out that the state legislature had not provided enough financial relief for the region, even in the most recent round of funding.
However, some Republican leaders in the General Assembly have defended their approach, arguing that it is prudent to rely on federal dollars to fund most of the recovery efforts, rather than allocating additional state resources. Despite their support for federal funding, the delay in receiving those dollars is clearly adding pressure on the recovery process.
The Role of FEMA and State Spending Authority
While the situation is still fluid, some relief came when FEMA funding was reactivated after a brief freeze in November 2024. However, Krebs warned that additional spending authority was urgently needed to move the recovery forward. Without clear authorization to spend the available FEMA funds, the process will continue to stall, frustrating both lawmakers and residents in need of housing.
“If we are in need of some spending authority here very soon, either way, we will face further delays,” Krebs said. The delay in both federal and state action is quickly becoming a crisis, with lawmakers and local officials alike scrambling for answers.
Some members of the legislature have already begun calling for a reevaluation of the state’s approach to recovery. Although the reliance on federal funds is understandable, the extended timeline for receiving this funding is forcing local leaders to reassess whether they need to step in with state dollars to bridge the gap.
Looking Ahead: A Rocky Road to Recovery
As lawmakers continue to grapple with these funding challenges, the outlook for the coming months remains uncertain. With the possibility of federal money being delayed until the fall, the timeline for permanent housing solutions could stretch far beyond what many in western North Carolina are prepared for.
Even as recovery efforts ramp up, the continuing strain on temporary housing could push local governments to take more immediate action, possibly involving new local funding initiatives or rethinking the pace at which the recovery can move forward. However, the pressure to do so while also maintaining cautious spending policies has left many feeling caught between the desire for rapid recovery and the need for financial restraint.
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