What to know about North Carolina’s historic investment in flood resilience

November 19, 2021

North Carolina just took a big step toward making its state more flood resilient. This week, Gov. Roy Cooper signed into law the state budget for the next year, which includes the largest investment to address flooding in state history. 

AFC is thrilled that the North Carolina Legislature made flood resilience a budget priority. The budget, outlined below, includes $800 million for disaster-related programs and projects, with over $400 million available for immediate use.

The funding comes as North Carolina, like much of the country, faces stronger storms and more flooding. Earlier this year, Tropical Storm Fred dumped more than a foot of rain, causing flash floods across Western North Carolina. And in recent years, Hurricanes Matthew and Florence caused $27 billion dollars in damages across the state. The state has spent over $3.5 billion in disaster aid to recover from these two storms alone.

The state budget’s historic investments will go toward risk assessment, planning, projects, and support that will help North Carolina break out of the costly cycle of disaster spending and help communities as they prepare for future flooding. 

Here’s what’s in the state budget and what it means for communities:

$20 million to create the Flood Resiliency Blueprint to identify and prioritize projects for the state’s watersheds most affected by flooding, like the Cape Fear and Neuse River Basins.

  • The blueprint will determine the flood risk of the most at-risk watersheds and lay out a statewide plan for projects and funding accordingly. 
  • The blueprint will provide communities with information to make decisions, drive investments, and jumpstart projects.

$6 million in technical assistance to support communities that need help right away. 

  • For many North Carolina communities, the complex and expensive process to apply for federal funding is a big barrier to overcome. 
  • The new technical assistance funding will go to regional entities called Councils of Government to help communities of all sizes compete for and access the funds they need.

$140 million to support new and existing programs. 

  • $30 million will set up a state fund to match FEMA dollars. 
  • $25 million will establish a fund that provides grants $250,000 and under for projects to reduce flood risk.
  • $15 million will establish a disaster relief fund (Disaster Relief and Mitigation Special Fund) to help communities pay for flood-reduction projects and support pre-development activities to help underserved communities develop shovel-ready projects.
  • $15 million will establish a transportation resilience fund that ensures communities have access to critical supply and evacuation routes. The fund will go toward:
    • Projects that update and prepare transportation infrastructure for storms, mudslides, and flooding by considering future risk.
    • Risk assessments for critical transportation routes, building on existing and future reports.
    • Community-informed flood risk and vulnerability assessments that identify resilience gaps and projects for vital transportation routes after floods.

$124 million to help communities recover from Tropical Storm Fred, which dumped a foot of rain in some places, swelling rivers, triggering mudslides, and leveling buildings across the state. 

How can communities prepare? 

Though the budget is now law, it may take some time before all the funding is available at the local level. To prepare for the eventual release of these funds, communities should consider taking the following actions:

  • Complete flooding and sea level rise planning measures, such as flood or sea level rise vulnerability assessments, stormwater master plans, or hazard mitigation plans.
  • Determine flood-protection projects that might be eligible for state funds and ways to meet requirements.
  • Consider a range of funding sources to make projects a reality. Local and state dollars can often pair with federal funds to satisfy local match requirements for grants.

AFC was proud to work with North Carolina lawmakers as they laid out a comprehensive strategy to address flooding and invest in the future of North Carolina’s communities. This landmark legislation embeds resilience across the state and will help North Carolina be better prepared for a future of stronger storms and rising seas. 

For more on reducing flooding in your community, check out some of these AFC resources: 

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Help Me Choose

Which characteristics is your community looking for in funding opportunities?

Disaster declaration
A Presidential Disaster Declaration unlocks a suite of federal programs that assist local governments with disaster recovery. This is a good filter for communities included in recent Disaster Declarations related to flooding.
Nature-based solutions
The program has a strong focus on providing assistance to promote a healthy ecosystem as a critical defense against flooding impacts. Eligible activities may include floodplain restoration, environmental stewardship, projects that use natural features to mitigate erosion, and living shorelines.
Encourages public-private partnerships
The program encourages or requires collaboration between government entities and stakeholders, including the private sector, to fund, develop, or implement projects.
Offers rolling deadlines
The program accepts applications on an ongoing basis with no fixed deadline.

Is your project in the planning, design, or construction phase?

Planning
The gathering of data and information regarding the extent and impacts of flooding. Eligible activities may include data acquisition, risk assessment, and environmental analysis.
Design & scoping
Covers pre-construction activities, such as defining project scope, developing technical designs, and securing funding to prepare for implementation.
Construction & implementation
Involves carrying out flood resilience projects, including building infrastructure and deploying solutions to reduce flood risks.

Are you looking for grants, loans, or technical assistance for your project?

Funding (grants)
A monetary award that does not need to be repaid. Many federal grants are reimbursable, meaning recipients must cover project costs upfront and then request reimbursement from the government.
Financing (loans)
A government-issued loan that must be repaid. These loans typically provide funding upfront, helping communities cover project costs before repayment begins.
Technical assistance
Assistance from the government in the form of services — such as project planning, engineering and design support, data analysis, training, capacity building, or collaboration through a cooperative agreement — instead of direct funding.

Some programs provide extra support for specific project types or communities. Do any of these apply to your project?

Small or rural communities
Programs that set aside funding, offer loan forgiveness, or adjust cost share requirements for communities with smaller populations.
Small or low-cost projects
Programs that offer reduced requirements for smaller projects, such as waived cost-sharing or exemptions from benefit-cost analysis.
Regional or watershed focus
Programs that support projects that take a watershed management approach or address flooding at a regional scale, requiring coordination beyond a single town or community.
Tribal communities
Programs that dedicate resources or adjust cost share requirements specifically for tribal governments or organizations.