RALEIGH N.C. (ACME NEWS) — The Federal Emergency Management Agency has rejected North Carolina’s recent request for a 180-day extension for full federal funding for Helene recovery costs.
In a letter dated May 22, FEMA’s acting administrator David Richardson informed N.C. Governor Josh Stein that the agency had completed a “careful and thorough review” and found the requested extension of the 100% federal cost-share “not warranted.”
The denial follows an earlier rejection in April under then-acting FEMA administrator Cameron Hamilton. That decision initially spurred Governor Stein to appeal, emphasizing the ongoing financial strain and recovery needs caused by Hurricane Helene.
“We continue to face significant recovery costs, and the loss of full federal reimbursement will place a substantial burden on North Carolina’s taxpayers and local governments,” Stein said at the time of his appeal.
The 100% cost-share program meant FEMA covered all eligible disaster-related expenses, easing the financial impact on the state. Without an extension, Stein estimates the state and local governments could shoulder an additional $200 million in costs.
“This denial forces North Carolina to absorb millions in expenses at a time when resources are already stretched thin,” said a spokesperson for the North Carolina Emergency Management Agency.
FEMA’s Uncertain Future
The denial of North Carolina’s appeal comes amid the Trump administration’s broader efforts to scale back—or potentially dismantle—the Federal Emergency Management Agency (FEMA) altogether.
“If it was up to me right now, I’d end FEMA right now,” President Trump said during a January visit to western North Carolina. “Let the state take care of the problem. If it’s Florida and it’s a hurricane, let the state take care of it. They don’t need FEMA coming in.”
The administration has offered little elaboration on the proposal, but Homeland Security Secretary Kristi Noem appeared to reinforce that stance during a nationally televised Cabinet meeting in March. In the middle of an update on border operations, Noem remarked, “and we’re going to eliminate FEMA,” without offering further context.
In May, then-FEMA Director Cameron Hamilton told members of a U.S. House Appropriations subcommittee that he did not believe eliminating the agency would serve the American public. He was fired the following day and replaced by David Richardson, a former Marine Corps Officer who was previously appointed as Assistant Secretary for the Department of Homeland Security’s Countering Weapons of Mass Destruction Office (CWMD).
“I do not believe it is in the best interest of the American people to eliminate the Federal Emergency Management Agency,”
(Former) FEMA Director Cameron Hamilton
In a phone call to agency employees shortly after his appointment, Richardson said FEMA would “find out how to do things better” and “push things down to the states that should be done at the state level.” He added that the agency is also exploring ways to “do more cost sharing with the states.”
According to a draft internal memo obtained by Reuters, approximately 2,000 FEMA employees—roughly one-third of the agency’s workforce—have either accepted buyouts or been terminated since President Trump took office.
With hurricane season approaching and the agency facing deep staffing cuts and an uncertain future, state governments may be forced to prepare for disasters with reduced federal backing—whether or not FEMA remains intact.
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