Understanding the USDA Block Grant for Hurricane Helene Relief
September 20, 2025
| Friends, Understanding the USDA Block Grant for Hurricane Helene Relief At a recent industry meeting I attended, the USDA block grant for Hurricane Helene relief was a key topic of discussion. Producers had seen the announcement of the $221.2 million grant to North Carolina and expressed appreciation for the assistance. My favorite question of the day came from one producer who summed up a common question: “What exactly is a block grant?” For readers who don’t regularly work with these programs or who aren’t versed in the ABCs of USDA, this is a good opportunity to explain this funding tool that’s been in the news. So, what is a block grant? A block grant is a sum of funds that a larger government provides to a smaller government to manage and distribute. In this case, USDA awarded $221.2 million to North Carolina, which will be administered by the North Carolina Department of Agriculture and Consumer Services (NCDA&CS) rather than directly by USDA. This funding is separate from the $311 million appropriated earlier this year by the NC General Assembly under the Agricultural Disaster Crop Loss Program. Block grants are not loans and do not need to be repaid. They are used for a range of purposes including disaster relief, research, community development, and public health. How is a disaster block grant different from other USDA disaster programs? Disaster block grants are typically ad hoc funds designed to cover losses not addressed by existing USDA disaster programs, supplemental disaster programs, or crop insurance. Under the American Relief Act of 2025, $31 billion was appropriated for agricultural relief covering both economic and infrastructure losses. North Carolina received $221.2 million of that funding as a block grant. NCDA&CS is responsible for setting up the program and administering the funds to producers. USDA’s Farm Service Agency and Risk Management Agency are not involved in the administration of the block grant. In total, 14 states received agricultural block grants from USDA under the American Relief Act of 2025. Potential advantages of block grants: Flexibility for states to allocate funds where they are most needed and build programs tailored to their regions. Reduced constraints compared to rigid federal disbursement categories, which can be especially helpful during disasters. Potential for faster payments due to fewer administrative layers between producers and the funding source. Potential disadvantages of block grants: Availability is not guaranteed for every disaster, especially if ad hoc spending is reduced by Congress. States must fully staff and administer these programs, which are often large and complex, on top of existing responsibilities. Outcomes can vary depending on each state’s experience and approach to managing block grants. NCDA&CS has encouraged producers to monitor its website for updates on how to apply for the block grant funding. The NC Ag Partnership will continue to share information to help producers make the most of this resource following Hurricane Helene. Best regards, |
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| Tori Rumenik Executive Director, North Carolina Ag Partnership |