Governor Josh Stein announced today that five western North Carolina counties will receive more than $86 million in funding for 14 drinking water and wastewater infrastructure projects as part of a U.S. Environmental Protection Agency program for disaster-affected states. North Carolina is the first state impacted by Helene to award grants from this program.
The awards require that drinking water and wastewater funds be used to improve flood resilience in systems that were impacted by Hurricane Helene, and septic system funds must be used to improve flood resilience to septic systems in Helene-affected areas.
“Too many people lost access to water when Hurricane Helene struck, and in some places, it took months to be able to guarantee potable water,” said Governor Josh Stein. “These grants will help towns across western North Carolina strengthen their water infrastructure so that it can better withstand future storms.”
“These are the first awards from the $686 million from the Environmental Protection Agency for drinking water, wastewater, and septic system repairs and upgrades in the wake of Helene,” DEQ Secretary Reid Wilson said. “Importantly, all funded projects must ensure that the systems will be more resilient to future flooding events. Having clean and reliable water is critical for the health of our people. Everyone expects and deserves to turn on the tap and receive water that is safe to drink.”
Notable projects include:
- The Town of Gamewell (Caldwell County) will receive $775,200 in Principal Forgiveness (PF) to replace/relocate gravity sewer lines and incorporate resiliency through various measures, including stream bank stabilization. High water from excessive rainfall during Helene caused erosion of the riverway and damaged pipe and support piers.
- The Town of Waynesville (Haywood County) will receive $5 million in PF to convert a gravity sewer line to a force main with a new pump station and to relocate an existing junction box outside of the 500-year flood plain.
- Town of Drexel (Burke County) will receive $5 million in PF to fortify lines in the floodplain and to convert a treatment unit into an equalization basin. The pump station was flooded during Helene, and installing an equalization basin would help reduce Sanitary Sewer Overflows and provide resiliency.
- The City of Morganton (Burke County) and the Town of Drexel (Burke County) individually submitted separate applications for the Morganton-Valdese-Drexel interconnection project. This project will create a new emergency interconnection between the towns of Morganton, Drexel, and Valdese to establish water system resiliency in the wake of an extreme weather event. Drexel will receive $5.1 million for its share of this project. Morganton will receive $10 million in funding for its share.
- Junaluska Sanitary District (Haywood County) will receive $10 million to rebuild and provide resilience to withstand floods. The shifting of the Pigeon River due to Helene flooding adversely impacted its old system. The proposed project will replace outdated, undersized, and aged water mains that service more than 300 residential connections along the Pigeon River. These lines are dead-end lines and are not looped or connected to other water mains. New water mains, along with valves, new water supply wells outside of the 500-year flood plain, and installation of backup power will provide resiliency, specifically for Haywood Community Hospital and Haywood County Emergency Services.
- Woodfin Sanitary District (Buncombe County) will receive $5 million to install emergency standby power and replace inoperable control valves at the water treatment plant to ensure operators can properly operate and maintain the system during emergencies.
- The Town of Hot Springs (Madison County) will receive $5 million in PF to include flood resiliency improvements to three pump stations and to improve approximately 5,600 linear feet of gravity sewer. Generators and flood protection walls will be added, and wet wells and electrical equipment will be elevated.
- The Town of Hot Springs (Madison County) will receive an additional $5.2 million to install a new redundant transmission line beneath the French Broad River from the well system to the distribution system and to install a new redundant waterline under Spring Creek to feed the 200,000-gallon water storage tank; to construct a new 200,000-gallon water tank adjacent to an existing tank to provide redundant system storage; to replace approximately 6,000 linear feet of damaged water lines; to rehabilitate and improve the existing supervisory control and data acquisition system to ensure operability and access during flood events; to install radio read meters, which will allow the town to quickly identify water leaks and provide repairs for customers; and to install back-up standby power to increase resiliency.
A list of all Hurricane Helene projects approved for funding at the State Water Infrastructure Authority's (SWIA’s) Sept. 17 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.
The Hurricane Helene funding came from the federal Supplemental Appropriations for Hurricanes Helene and Milton and the Hawai’i Wildfires (SA-HMW), referred to in North Carolina as State Revolving Fund (SRF) Helene funds.
The Division will continue to accept applications on a rolling basis for the new federal SRF Helene funds from the 2025 American Relief Act to build resilience to water infrastructure for Hurricane Helene-impacted communities. The SRF Helene funds for western North Carolina towns that have experienced Helene damage will continue to be available through year-round applications until 2026.
Applications received by the dates below will be reviewed and presented at a subsequent SWIA meeting as follows:
- First round of applications received by August 1 were presented to SWIA and awarded on September 17.
- Applications received by November 3 will be presented to SWIA on December 10, 2025.
- Applications received by January 9, 2026, will be presented to SWIA on February 18, 2026.
- Applications received by March 2, 2026, will be presented to SWIA on April 15-16, 2026.
Drinking Water SRF Helene and Clean Water SRF Helene funding is available to local government units (LGUs) 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 disaster.
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 in July and August, directly related to applying for the SRF Helene funds, 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.
Learn more about the Division of Water Infrastructure’s funding programs here.