FEMA denies North Carolina request for 100% cost-sharing of Hurricane Helene relief

(WASHINGTON) -- The Federal Emergency Management Agency denied North Carolina's request for the agency to match 100% of the state funds for Helene cleanup, according to a letter sent from the acting FEMA administrator to the governor of North Carolina.

"After a careful and thorough review of all the information available, including that contained in your initial request for a cost share adjustment and appeal, we have concluded that an extension of the 100 percent federal cost share for debris removal and emergency protective measures, including direct federal assistance for an additional 180 days under major disaster declaration FEMA-4827-DR is not warranted," acting Administrator David Richardson wrote in the letter.

The cost-sharing request comes from a Biden administration directive to match 100% of the funds that the state puts in to share costs of the disaster cleanup after Hurricane Helene devastated the state as a Category 4 storm in September 2024.

Over 230 people were killed by the storm, with at least 72 in Buncombe County, North Carolina, alone, amid record flooding throughout western North Carolina

Traditionally, there is a cost-sharing model with a 75% federal absorption of costs to 25% for states, but that was changed under the Biden administration to match the costs 100%.

It is unclear how FEMA would split costs between states and the federal government for future disaster relief.

In a statement, North Carolina Gov. Josh Stein said the denial will cost state residents "hundreds of millions of dollars."

"The money we have to pay toward debris removal will mean less money towards supporting our small businesses, rebuilding downtown infrastructure, repairing our water and sewer systems and other critical needs," he said.

The funding debate is occurring as the Department of Homeland Security weighs how to eliminate the agency while still giving states funding for disasters.

At the center of the plan is Homeland Security Secretary Kristi Noem, who has personally weighed how to cut the agency.

"The president has indicated he wants to eliminate FEMA as it exists today and to have states have more control over their emergency management response," Noem said on May 8, adding that the agency has "failed" in its mission and should be eliminated or downsized. "He wants to empower local governments and support them and how they respond to their people,"

FEMA has not responded to ABC News' request for comment.

Still, an internal review of FEMA this month indicated the agency is "not ready" for the 2025 hurricane season.

"As FEMA transforms to a smaller footprint, the intent for this hurricane season is not well understood, thus FEMA is not ready," the review said, citing staffing limitations, hiring and a lack of coordination with states as the Trump administration attempts to reorganize and diminish FEMA.

The decision comes as the United States anticipates above-average hurricane activity on the Atlantic coast this year, with between 13 and 19 named storms expected.

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