Some North Carolina towns say they haven’t received millions of dollars in federal disaster mitigation reimbursements — despite being promised the money two years ago, and a judge’s order requiring federal officials to pay up.
New reporting from local governments across the state shows that funding under the Building Resilient Infrastructure and Communities program, known as BRIC, is partially flowing in some cases but stalled or under review in others.
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The Federal Emergency Management Agency had promised the grants in 2024. But it ended up canceling the funding as part of an effort to reduce federal spending. North Carolina and other states sued, and a federal judge ordered FEMA to make the payments. Some towns have received funds, but some are still waiting, according to local and state officials.
In Princeville, officials say they have received about $7 million in reimbursements so far for a $10.9 million infrastructure construction project. Because BRIC grants operate on a reimbursement basis, the town pays contractors first and then submits invoices to FEMA for repayment. The project is more than 70% complete, and they are hopeful remaining funds will come as work progresses.
Hillsborough officials said they have not received any funds for a $5.8 million river pumping station and interceptor relocation project or a separate $1 million regional water supply project.
Officials in Greenville and Lumberton also confirmed they have not received BRIC funding tied to their projects.
“It is frustrating, to receive an award or an announced award and spend so much time and effort and resources going through the review process, only to have the funding being pulled right at the last hour or so,” Brandon Love, Lumberton’s deputy city manager told WRAL in an interview Thursday.
Gastonia received about $146,500 in reimbursements for its Duhart's Creek critical infrastructure and stream restoration planning project. However, additional reimbursement requests totaling more than $200,000 in federal funds have been under review in FEMA’s system for months, according to city officials. Anticipated funding for some Gastonia projects has been canceled.
FEMA says it’s complying with the federal court order directing the agency to resume BRIC funding. North Carolina Attorney General Jeff Jackson says it isn’t.
“Contrary to FEMA's assertions, dozens of projects in North Carolina haven’t received a penny despite a court ordering FEMA to pay,” Jackson said in a statement. Jackson said he plans to continue pressing FEMA to make the payments.
North Carolina Republican Party spokesman Matt Mercer has criticized the legal challenge that led to the court order. He defended the administration’s approach to cutting federal spending.
“Stopping bloated Biden-era government spending and restoring FEMA’s mission have been priorities of the Trump administration,” Mercer said.
The court order required FEMA to resume funding that had been paused but didn’t change the program’s reimbursement structure or require lump-sum payments.
Love says they are used to slow payments from the federal government, regardless of who is in power.
“Oftentimes the state and the federal government are not communicating correctly or that you have staffing changes there, and so things get lost in the mix,” Love said. “Unfortunately, at least for the citizens in Lumberton, they're the ones that pay the price for that dysfunctional system.”
The funding uncertainty also comes in the midst of a recent federal government shutdown, which is straining FEMA’s staffing and administrative capacity. In past shutdowns, disaster response operations have continued, but some grant processing functions have slowed.