Last September, Hurricane Helene hit Lake Lure, North Carolina, hard. The century-old dam that holds back the lake was badly damaged, with floodwaters carving a huge scar on one side and washing away five months of rain in a single storm. The town’s emergency sirens warned residents of a possible dam failure, urging the 3,000 people living downstream to get to higher ground.
Fortunately, the dam held steady, preventing a disaster. But the damage stirred the town into action. Lake Lure officials are now pushing for an ambitious plan to rebuild and strengthen the dam, asking for $200 million in federal funds to make it stronger and safer for the future.
The Federal Emergency Management Agency (FEMA) initially seemed ready to help. Under President Joe Biden’s administration, FEMA showed interest in funding projects that prepare communities for future disasters. However, the situation has changed under President Donald Trump. His plans to cut FEMA’s budget and shift more disaster-related costs to states have created uncertainty for Lake Lure’s recovery.
This shift means the town’s hopes for FEMA funding for a new dam, a project that could take a decade, are uncertain. Town commissioner Dave DiOrio, a former Navy captain with engineering experience, said the town is now reaching out to other agencies like the Army Corps of Engineers for help.
Lake Lure is a small resort town with about 1,400 year-round residents, but it draws up to 10,000 visitors during summer. The lake is its main attraction. Since the hurricane, debris removal is ongoing, and with the lake area partly closed for repairs, local businesses are seeing fewer customers. Hotel bookings are down, and many vacation cabins are empty.
Despite the challenges, the dam’s survival prevented a worse fate for nearby towns like Chimney Rock, where flooding destroyed much of the main street. Michael Hager, a lobbyist for Lake Lure, pointed out that the lake caught much of the floodwater, saving lives and homes downstream.
Hurricane Helene caused an estimated $60 billion in damage across western North Carolina and claimed 250 lives, making it one of the deadliest hurricanes on U.S. soil since Katrina in 2005. FEMA covered all debris removal and emergency costs for six months after the storm, and then dropped its coverage slightly—but the remaining support still stretches beyond usual levels.
Beyond the dam, Lake Lure has other costly projects to tackle. The town wants to move a wastewater treatment plant out of flood-prone areas, which will cost about $35 million. Its aging sewage system at the bottom of the lake needs replacement, with estimated costs around $100 million.
These recovery efforts come as the state faces added financial pressure. North Carolina’s governor, Democrat Josh Stein, warned that the state could be on the hook for an extra $200 million after FEMA denied requests to extend full cost reimbursements beyond 180 days. This could mean cuts to other services like roads and schools.
Local business owners like Cara Brock, who runs a market near the lake, are feeling the strain. Brock is barely breaking even and considering a loan to survive until the town’s main attraction reopens next summer. She emphasizes that disaster recovery can’t fall just on the state—it needs federal support.
The future of FEMA’s role remains uncertain. The Trump administration has cut some hazard mitigation programs and declined requests from several states for similar funding. Officials say they are working on managing existing funds more efficiently. But for towns like Lake Lure, which rely heavily on federal help to rebuild stronger and safer, this shift is a major concern.
The lake and dam are not just physical features for the town; they are the heart of the community. Protecting them and planning for the future is essential, but whether the funding will come is still unclear.