While federal officials have assured approximately $1.6 billion will be available to fund mitigation projects—a program known as the Hazard Mitigation Grant Program (HMGP)—not a single property owner has been bought out, creating a significant point of frustration for state and local leaders.
The Approval-vs.-Release Bottleneck
The current situation centers on the two-stage federal funding process and a recent, more stringent review requirement:
The Funding Status is Unclear: It is not publicly clear whether the applications have received initial FEMA approval and are simply awaiting the final release (obligation) of funds, or if they are still stuck in the in-depth federal review process.
The HMGP Process: HMGP requires homeowners to submit applications to their local governments, which bundle them for the state (NC Emergency Management) to endorse and submit to FEMA. The money is disbursed only after FEMA provides final, project-specific approval and obligates the funds.
The Waiting Period: Applications for home buyouts submitted as far back as February 2025 are still in Federal Emergency Management Agency (FEMA) offices for official approval. Recent reports indicate that the state is awaiting a "lock-in" letter from FEMA and federal officials, which would confirm the exact portion of the $1.6 billion dedicated to the buyouts and allow the transactions to proceed.
The Reason for Delay: According to Matt Calabria, Director of the Governor's Recovery Office for Western North Carolina (GROW NC), HMGP applications are currently subject to a new federal policy requiring the personal approval of the Homeland Security Secretary for any expenditure over $100,000. Calabria has pointed to this directive as a significant "bottleneck" contributing to the painfully slow pace of funding distribution.
Calabria, whose office is focusing on Western North Carolina's Helene recovery, expressed the state's position that federal officials have told state staff that the confirming "lock-in" letter will arrive at state offices "any day."
The delay leaves over 300 WNC families unable to rebuild or move on, as they are legally bound to await the program's final decision before taking any other action with their damaged properties. The standard HMGP timeline can involve 12-24 months for FEMA review, but the combination of the large number of WNC applications and the new approval process has extended the uncertainty.
WNCTimes
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