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North Carolina Weathers Federal Shutdown, Keeps Hurricane Recovery on Track
15 Nov
Summary
- North Carolina avoids major setbacks in hurricane recovery during 43-day federal shutdown
- Local governments face cash flow issues due to delayed FEMA reimbursements
- State leverages separate funds to continue rebuilding homes destroyed by Hurricane Helene

In November 2025, as the federal government shutdown entered its 43rd day, North Carolina officials were determined to prevent the state's hurricane recovery efforts from hitting any major obstacles. The state had been working tirelessly to rebuild in the aftermath of Hurricane Helene, and they were not about to let the political gridlock in Washington derail their progress.
Despite the challenges posed by the shutdown, North Carolina managed to keep its recovery programs running. Two key federal programs that were set to lapse during the shutdown, one providing crisis counseling and another hiring displaced workers for recovery jobs, were both extended. The U.S. Department of Housing & Urban Development, which oversees a $1.4 billion pool of money to rebuild homes, also resumed full operations after weeks of skeleton staffing.
While the state has been able to tread water, many local governments are struggling to stay afloat. The already complex process of getting reimbursed for rebuilding costs has slowed to a crawl, leaving cash-strapped communities desperate for repayment. The North Carolina Association of County Commissioners has expressed frustration with the bureaucratic hurdles, calling for waivers to bypass reviews for routine payments.
As the shutdown has now ended, North Carolina appears to have avoided any major setbacks in its hurricane recovery efforts. The state has even been able to leverage separate funds to continue its homebuilding program, Renew NC, cutting months off the recovery timeline. However, the lingering effects of the funding delays continue to pose challenges for local governments as they work to rebuild their communities.




