Bill
HB 752
Creates Rail and Airports Special Economic Development Funds to finance rail, airport, and port capital projects, with matching, incentives, and competitive allocation.
Status & Context
- Bill number: HB 752 (North Carolina)
- Title: Transportation Economic Development Funding
- Introduced: Nov. 12, 2024; Passed First Reading (committee and floor actions ongoing)
- Sponsors (primary noted in text): Representatives Reives, Carney, Belk, Cervania
- Purpose: create targeted state funds to support railroad and airport capital and economic development projects, and to support investment at the Port of Morehead City.
What the bill does — key provisions
1. Establishes a Special Economic Development Fund for Rail (the “Rail Fund”)
- Created as a special fund within the General Fund and administered by the Division of Rail.
- Authorized uses: rail construction and improvements, industry rail connections, railcar/locomotive acquisition, railyard construction; a portion may be used for project preparation (e.g., preliminary engineering, due diligence).
- Sources: transfers to the fund and income/interest on fund investments. Money in the fund does not revert.
- Allocation limits: up to 60% of annual allocations may be used as state match for federal grant applications; up to 30% for project preparation.
- Administrative cap: up to 3% of the Rail Fund may be used for administrative costs.
- Competitive allocation criteria: projects prioritized by independent estimates of capital investment, jobs and revenue; Division will consult with the Department of Commerce.
- Reporting: initial implementation report due March 1, 2026; thereafter an annual report due each Dec. 1 covering use of funds, projects approved, and estimated economic impact.
- Appropriation: a one-time, nonrecurring transfer of $50,000,000 from the General Fund to the Rail Fund.
Establishes a Special Economic Development Fund for Airports (the “Airports Fund”)
Port of Morehead City
Who is affected
- State agencies: Division of Rail, Division of Aviation, Department of Transportation, Department of Commerce (consultation role).
- Airports, rail operators, local governments, and private industry that apply for or receive fund allocations or matched federal grants.
- Businesses and communities that would benefit from freight, passenger, and port infrastructure improvements (manufacturing, agriculture, logistics, tourism).
Procedural/timeline notes
- Implementation reporting: initial Rail Fund report due March 1, 2026; annual reports thereafter (Dec. 1).
- The Rail Fund receives an immediate one-time appropriation of $50 million (nonrecurring).
- Allocation and disbursement rules and project criteria will be developed by the administering divisions and are subject to rulemaking and competitive application processes.
Potential impacts (high level)
- Immediate: $50M seed for rail projects and a statutory vehicle to leverage state matching funds for federal grants.
- Medium-term: targeted capital investments could improve freight efficiency, reduce roadway congestion, and support regional economic development.
- Airports: provides a formula and limits for capital improvements and incentives to attract/retain strategic flights—could mobilize local matching funds and private investment.
- Fiscal: creates special funds that do not revert and can accrue interest; administrative spending is constrained for rail (3% cap). Specific long-term budgetary impacts depend on future appropriations and awards from the new funds.
Limitations / open items
- The Airports Fund allocation percentages in the excerpt overlap (sum >100%) and may require interpretation or amendment during implementation.
- Specific appropriation amounts for airports or the port facility were not visible in the provided text.
- Final project lists, award amounts, and economic impacts will depend on subsequent rulemaking and competitive project selection.
Compiled from official sources — confirm details with the bill’s official record.
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