Transportation Secretary Sean P. Duffy announced Wednesday that the Department of Transportation will provide more than $1.5 billion in federal funding to help states and U.S. territories repair roads, bridges and other transportation infrastructure damaged by natural disasters, with $683 million targeted to Hurricane Helene recovery efforts.
The funding, part of the Federal Highway Administration’s Emergency Relief program, will support repair projects in 36 states, the District of Columbia, Guam, the U.S. Virgin Islands and Puerto Rico. Duffy, who visited the hardest-hit areas as one of his first official actions upon taking office, said the administration is committed to expediting recovery.
“Under President Trump’s leadership, this Department will leave no state behind. We are expediting the process to remove unnecessary barriers for urgent projects so communities can rebuild in real time,” he said. “Within the first 100 days of the Administration, we announced repairs to North Carolina’s I-40 highway, washed out by Hurricane Helene, that are projected to save two-thirds in both cost and time — amounting to hundreds of millions of hard-earned tax dollars.”
Hurricane Helene, which struck in September 2024, caused catastrophic damage across the Southeast, particularly affecting transportation networks in North Carolina and Tennessee. The storm destroyed sections of key highways, including I-40 and I-26, both critical routes for freight transportation in the region.
The hurricane’s impact was especially severe on railroad infrastructure. More than 40 miles of CSX’s former Clinchfield Railroad between Erwin, Tennessee, and Spartanburg, South Carolina, was washed away, including two bridges. Norfolk Southern also suffered extensive damage, with many sections along 50 miles of its line between Marshall and Old Fort, North Carolina, through Asheville destroyed by flooding.
I-40, which straddles the North Carolina-Tennessee border, has been particularly affected. While some sections have recently reopened with limited capacity — including the stretch between Exit 7 in North Carolina and Exit 447 in Tennessee — many areas remain under construction. Currently, only one lane is open in each direction between exits 15 and 20 in North Carolina.
Of the $1.5 billion allocated, North Carolina will receive $415 million, with more than $400 million dedicated to Hurricane Helene recovery. Tennessee will get $227 million, including more than $178 million for Helene-related repairs. Additional allocations include $68.8 million to South Carolina (with over $50 million for Helene), $44.6 million to Florida (including $43 million for damage from hurricanes Milton, Helene and Debby), and $26.4 million to Georgia (with $23 million for Helene recovery).
This emergency funding builds on previous allocations, including a $352.6 million “quick release” package and $167 million initially provided to North Carolina and Tennessee for emergency relief following the hurricane.
The funds will be used to restore transportation routes that are essential to regional productivity and economic recovery. Projects include rebuilding damaged sections of I-40 and I-26, repairing bridges, and restoring roads that support tourism by connecting Americans to the region’s natural resources.
“The Federal Highway Administration has been working closely with states across the country to restore vital transportation networks and provide safe travel for the public,” said FHWA Chief Counsel Jay Payne. “As we continue to provide disaster relief, we remain steadfast in our commitment to provide the federal resources needed until all highway transportation links are restored.”
The damage from Helene has had significant economic impacts beyond just infrastructure. CSX reported losing approximately $1 million per day in revenue during the first quarter due to hurricane damage and related network constraints. The railroad continues to rebuild its 60-mile line through eastern Tennessee and western North Carolina, with reconstruction expected to continue “through the better part of this year” before completion in October or November, according to CSX Executive Vice President and Chief Financial Officer Sean Pelkey.
Duffy emphasized that the Department of Transportation will continue assisting affected states throughout the recovery process.
“We will continue to support impacted states and regions every step of the way as they make emergency repairs and get critical transportation infrastructure back up and running as quickly and safely as possible,” he said.
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