Governor Stein, DEQ Announce $270 Million for Resilient Water Infrastructure Projects in Areas Damaged by Hurricane Helene

Governor Josh Stein today announced $270 million in awards to repair and strengthen the resilience of water systems in areas affected by Hurricane Helene. The awards from the NC Department of Environmental Quality will fund 58 water, wastewater and septic system projects in 26 western North Carolina counties. North Carolina is the first state affected by Hurricane Helene to make awards provided through the 2025 State Revolving Fund Supplemental Appropriations for Hurricanes Helene and Milton and the Hawai’i Wildfires.

A key requirement to receive funding is that a project must strengthen the system’s long-term resilience to future flooding.

“Hurricane Helene laid bare North Carolina’s need to upgrade its water infrastructure,” said Governor Josh Stein. “I applaud the Department of Environmental Quality’s quick work to award this funding faster than any other Helene-impacted state. Making these investments today makes us more resilient in the face of future disasters.”

“Safe drinking water and healthy waterways are basic necessities for health and quality of life,” said DEQ Secretary Reid Wilson. “Hurricane Helene inflicted serious damage to water systems, imperiling water supplies throughout our mountain communities. These awards will help communities rebuild to ensure that systems are less vulnerable to future flooding.”

Projects include:

• Chimney Rock Village (in Rutherford County) will receive $2,706,162 for a drinking water system resiliency project, $5,000,000 for a new wastewater treatment plant and sewer resiliency improvements, and $4,163,192 to extend sewer lines to connect homes with septic systems.
• Town of Old Fort (in McDowell County) will receive $10,000,000 for a drinking water system resiliency project and $5,000,000 for a sewer system resiliency project.
• Western Piedmont Council of Governments will receive $7,556,854 to repair 300 Helene-damaged and failed septic systems in Alexander, Alleghany, Ashe, Avery, Burke, Caldwell, Catawba, Mitchell, Watauga, Wilkes, and Yancey counties.
• Town of Burnsville (in Yancey County) will receive $8,208,552 for drinking water supply and distribution improvements and $4,877,626 for Hickory Lane and West Glendale Avenue sewer line improvements.
• Town of Clyde (in Haywood County) will receive $4,316,538 for a drinking water system interconnection with the Towns of Canton and Waynesville, and $5,000,000 for wastewater system resiliency improvements.
• Town of Crossnore (in Avery County) will receive $5,370,300 for drinking water system resiliency improvements and $4,993,091 for wastewater system resiliency improvements.

A list of all State Revolving Fund (SRF) Helene projects and other projects approved for funding at the Dec. 10 State Water Infrastructure Authority (SWIA) meeting is available on the North Carolina Department of Environmental Quality (DEQ) website. The Authority is an independent body with primary responsibility for awarding federal and state funding for water infrastructure projects.

Applications for the federal SRF Helene funds, which were made available through the 2025 American Relief Act for western North Carolina towns that have experienced Helene damage, will continue to be available through DEQ’s Division of Water Infrastructure until March 2, 2026.

Applications received by the dates below were either reviewed or will be presented at a SWIA meeting:  

1. $86 million from applications received by Aug. 1 was awarded at the Sept. 17 SWIA meeting.
2. $270 million from applications received by Nov. 3 was awarded at the Dec. 10 SWIA meeting.  
3. Applications received by Jan. 9, 2026, will be presented to SWIA on Feb. 18, 2026, for approval.
4. Applications received by March 2, 2026, will be presented to SWIA on April 15-16, 2026, for approval.

Helene SRF funding for drinking water and clean water projects is available to local government units and nonprofit water corporations (and investor-owned drinking water corporations for the DWSRF) in the form of zero-interest loans and principal forgiveness. Applicants must document impacts from Hurricane Helene, and the proposed project must include resiliency with the purpose of reducing flood damage risk and vulnerability to rapid hydraulic change or natural disasters.

Clean Water SRF Helene funding for septic systems is available to local government units, nonprofit water corporations, Community Development Financial Institutions and nonprofit organizations that finance homeowner repairs of septic systems. The funding is offered in the form of principal forgiveness loans and must be used to improve flood resilience to septic systems in Helene-affected areas and/or to connect homes on septic systems to public sewer systems.

The Division of Water Infrastructure conducted four preliminary SRF Helene information sessions for prospective western North Carolina applicants in May in Boone, Hickory, Rutherfordton and Asheville. These were followed by in-person application trainings, related to applying for SRF Helene funds, in July and August in Clyde, Hickory, Boone, and Research Triangle Park/Durham. A virtual option was also offered, and a recording of the training is posted on the Division’s training web page. Additionally, in September, the Division offered an SRF Helene funding application webinar to interested parties to learn about funding and how to apply for it. The webinar was recorded and is available on the Division’s website.  

In addition to the SRF Helene funds, the State Water Infrastructure Authority awarded $9 million for projects to inventory and replace lead service lines and $750,000 for projects to finance the repair and replacement of septic systems in two counties under a Clean Water State Revolving Fund pilot program.

Learn more about the Division of Water Infrastructure’s funding programs here.