H1012 - Disaster Recovery Act of 2025 - Part II. (SL 2025-26)

Overview: Subpart II-C of S.L. 2025-26 (House Bill 1012) establishes the Hurricane Helene Flood Mitigation Grant Program (Program). Funds appropriated in this act to North Carolina Emergency Management (NCEM) for the Disaster Relief and Mitigation Fund must be used to provide funds to the Program to provide flood mitigation grants to local governments and nonprofit organizations to undertake flood mitigation projects in the affected area. Recipients of grants under the Program are not required to cost-share or match and are to be paid under a reimbursement model for eligible costs incurred.

Projects that receive grants under the Program must reduce the risk of future damage from flooding through structural or nonstructural measures through the following:

• Culvert or bridge retrofits or replacements.
• Stormwater and drainage system improvements.
• Relocation of at-risk infrastructure.
• Hardening of critical facilities and utilities.

Local governments may also apply for engineering assistance grants under the Program which may be used to identify and design shovel-ready projects related to flood mitigation.

NCEM and the Program are subject to the following restrictions:

• NCEM must not award a grant larger than (i) 10% to a single recipient or (ii) 20% to a single county, of the total funds appropriated in this act for the Program.
• NCEM may retain up to 1.5% of the funds appropriated for the Program for administrative expenses.  

This subpart became effective June 27, 2025.