RALEIGH, N.C. (QUEEN CITY NEWS) -- The federal government can’t spend North Carolina’s more than $200 million in disaster preparedness money elsewhere, a judge ruled Tuesday.
The federal court ruling comes amid the state’s July 16 lawsuit against the Federal Emergency Management Administration over the cancellation of a program that provides $225 million to protect North Carolina’s infrastructure, including water and sewer services that have been devastated by storms. Attorney General Jeff Jackson first announced the decision on X.
PREVIOUS: AG Jackson sues FEMA over $200 million cuts to NC disaster protection funds“FEMA broke the law when it cut these millions that our communities were using to repair water and sewer systems and prepare for the next storm,” Jackson wrote Tuesday. “We’re going to keep fighting to make sure this funding is restored.”
Breaking: The court just ruled that the federal government can’t spend North Carolina’s $200m in disaster preparedness money elsewhere while our lawsuit against FEMA plays out.FEMA broke the law when it cut these millions that our communities were using to repair water and…
— Jeff Jackson (@JeffJacksonNC) August 5, 2025The Associated Press reported that U.S. District Judge Richard G. Stearns in Boston granted a preliminary injunction sought by 20 Democrat-led states while their lawsuit over the $4 billion in funding moves ahead.
In May, members of Congress wrote a bipartisan letter to FEMA asking the agency to reinstate the Building Resilient Infrastructure and Communities Grant funds.
“The benefits of the program should not be concentrated in or limited to jurisdictions with dedicated offices and the staff necessary to navigate the grant application requirements,” the letter led by Rep. Chuck Edwards and Sen. Thom Tillis says. “Additionally, the program should be updated with a strategic approach that empowers states and local governments to address degraded and vulnerable infrastructure based on their localized priorities and understanding of risk.”
Jackson's lawsuit states that during Donald Trump’s first term as president, he substantially expanded FEMA’s small disaster mitigation program and formally created BRIC, which provided more funds for disaster preparation projects. These include constructing evacuation shelters and flood walls, safeguarding utility grids against wildfires, protecting wastewater and drinking water infrastructure, and fortifying bridges, roadways, and culverts.
In April, the program was abruptly cancelled, forcing communities across the country to delay, scale back, or cancel hundreds of multi-million-dollar projects that had been in development for years. A recent study reportedly concluded that every dollar FEMA spends on mitigation saves an average of $6 in post-disaster costs.
Some of the canceled grants in the Charlotte area include:
Salisbury was awarded $22.5 million to relocate its pump station along the Yadkin River to higher ground so it can be safely accessed during storms to maintain a drinking water supply. Gastonia was awarded $5.9 million to restore the banks of Duharts Creek and relocate sewer lines to prevent floodwater damage. Mount Pleasant was selected to receive more than $4 million to improve stormwater drainage and secure electrical wires to greatly reduce the risk of losing electric and telecommunications services during storms and floods.Jackson was joined by attorneys general from 20 other states.
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