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HB 232

Short-Line Railroad Disaster Assistance/Funds.

2025-2026 Session Introduced by Mike Clampitt and 1 co-sponsor

Provides one-time state disaster recovery funds to restore two short-line railroads damaged by Hurricane Helene, preserving freight service.

Passed 1st Reading
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Bill Summary · HB 232

Summary — HB 232: Short‑Line Railroad Disaster Assistance / Funds (North Carolina)

Status: Passed first reading; referred to Appropriations (Feb 27, 2025).
Primary sponsors: Representatives John Pless and Justin Clampitt.
Effective date (as drafted): July 1, 2025.

Main purpose

Provide one‑time, nonrecurring state disaster recovery funding to repair and restore short‑line freight rail infrastructure damaged by Hurricane Helene, preserving freight service and supporting local economies served by those rail lines.

Key provisions

  • Directs the State Controller to transfer $16,392,176 (nonrecurring, FY 2025–26) from the State Emergency Response and Disaster Relief Reserve to the Department of Transportation (DOT) Rail Division’s Freight Rail & Rail Safety Improvement Fund (established under G.S. 124‑5.1).
  • Appropriates the transferred funds to the Rail Fund for grants to specified short‑line rail operators:
    • $14,000,000 to Blue Ridge Southern Railroad, LLC — for line restoration.
    • $2,392,176 to Great Smoky Mountains Railroad, LLC — for track rehabilitation, facility repairs, and compensation for revenue losses.
  • Assigns the DOT Rail Division responsibility to administer the grants (use, award, and oversight follow DOT procedures).

Funding source and fiscal character

  • Source: State Emergency Response and Disaster Relief Reserve (one‑time transfer).
  • Nature: Nonrecurring appropriation for FY 2025–26; specifically earmarked for the two named short‑line railroads.
  • No ongoing or recurring appropriation in the bill text.

Who is affected

  • Primary recipients: Blue Ridge Southern Railroad, LLC; Great Smoky Mountains Railroad, LLC.
  • Secondary beneficiaries: Local shippers, businesses, and communities that rely on those short‑line freight connections; rail employees; regional supply chains.
  • State finances: reduction in the emergency reserve balance by the transferred amount; DOT Rail Division will manage program implementation.

Potential impacts and considerations

  • Positive near‑term impact: accelerates restoration of freight rail service, reduces long‑term economic disruption for customers and communities served by the affected rail lines.
  • Fiscal tradeoff: uses emergency reserve funds for infrastructure recovery, which lowers available emergency reserves for other needs until replenished.
  • Limited scope: funds are specifically allocated to the two named railroads; other short‑line operators affected by the same disaster are not funded by this bill.
  • Administrative: DOT Rail Division must ensure appropriate grant oversight and compliance with the statutory purpose.

Timeline / Procedural notes

  • Bill requires the Controller’s transfer and appropriation in FY 2025–26.
  • Becomes effective July 1, 2025 (per the version text).
  • At time of this summary the bill had passed its first reading and been referred to appropriations for further action.

Compiled from official sources — confirm details with the bill’s official record.

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