GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH10314-MWa-7
Short Title: Transportation Economic Development Funding. (Public)
Sponsors: Representative Reives.
Referred to:
*DRH10314 -MWa-7*
A BILL TO BE ENTITLED 1
AN ACT TO FUND RAILROAD AND AIRPORT DEVELOPMENT AND TO FUND THE 2
PORT OF MOREHEAD CITY. 3
The General Assembly of North Carolina enacts: 4
5
GENERAL ASSEMBLY FINDINGS 6
SECTION 1. The General Assembly finds that: 7
(1) Transportation infrastructure is a foundational pillar for economic 8
development, enabling the efficient movement of goods, services, and people 9
across North Carolina, strengthening communities' abilities to connect and 10
grow. 11
(2) North Carolina's railroads serve as a critical component of the State's logistics 12
and supply chain infrastructure, necessary for freight movement, reducing 13
transportation costs, and providing a sustainable alternative to road 14
transportation, vital for supporting North Carolina's manufacturing and 15
agricultural industries. Upgrading our railroad infrastructure will reduce 16
transportation costs, improve freight efficiency, and will help alleviate road 17
congestion. 18
(3) Airports are integral anchors for regional economies, serving as key 19
transportation hubs, direct and indirect job creators, catalysts for trade, 20
tourism, and business growth, and supports for key industries. They attract 21
infrastructure investment and enhance connectivity, which strengthens North 22
Carolina's communities and expands its access to global opportunities. 23
(4) Located near more than seventy percent (70%) of the U.S. industrial base and 24
easily accessed by Interstates 95 and 40 via U.S. Highways 70 and 17, the Port 25
of Morehead City fills an important role in our chemical products and bulk 26
shipping industries. Along with the Port of Wilmington, it contributes heavily 27
to the economy of North Carolina, helping generate sixteen billion one 28
hundred million dollars ($16,100,000,000) in economic output. The 29
construction of a roll-on-roll-off facility would greatly enhance the port's 30
efficiency and capacity, fostering job creation, strengthening supply chains, 31
and driving further economic growth across North Carolina. 32
(5) Investing in transportation infrastructure is essential for keeping North 33
Carolina competitive in both national and global markets, ensuring efficient 34
trade, business growth, and economic resilience. 35
36
H.B. 752
Apr 2, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH10314-MWa-7
RAILROAD DEVELOPMENT FUND 1
SECTION 2.1. Article 2D of Chapter 136 of the General Statutes reads as rewritten: 2
"Article 2D. 3
"Railroad Revitalization.Development. 4
… 5
"§ 136-44.41. Special Economic Development Fund for Rail. 6
(a) Creation. – The Special Economic Development Fund for Rail (Rail Fund) is 7
established as a special fund within the General Fund to be administered by the Division of Rail 8
in accordance with this Article. 9
(b) Purpose. – The purpose of the Rail Fund is primarily for rail construction, rail 10
improvements, industry rail connections, railcar and locomotive acquisition, and railyard 11
construction. A portion of the Rail Fund may also be used for project preparation uses such as 12
preliminary engineering and due diligence. 13
(c) Source. – The Rail Fund shall consist of funds transferred to the Rail Fund and 14
revenue generated by Rail Fund investments and interest. Monies in the Rail Fund shall be 15
invested in accordance with G.S. 147-69.1, except that all interest or income received and 16
accruing on the monthly balance of the Rail Fund shall be paid into the Rail Fund. Unexpended 17
funds appropriated to the Rail Fund shall not revert. 18
(d) Uses. – Funds in the Rail Fund shall be used in accordance with the purpose of this 19
section. 20
(e) Cost-Sharing. – An allocation of funds under this section shall be in accordance with 21
the following requirements: 22
(1) No more than sixty percent (60%) of the annual allocations from the Rail Fund 23
shall be for the State match on federal grant applications. 24
(2) No more than thirty percent (30%) of the annual allocations from the Rail 25
Fund shall be for project preparation uses such as preliminary engineering and 26
due diligence. 27
(f) Criteria. – The Division shall establish procedures and criteria and adopt rules for 28
allocating funds from the Rail Fund in accordance with the purpose of this section and the 29
following criteria: 30
(1) The rail project is projected to increase capital investment, jobs, and revenue, 31
independently determined by the Department. 32
(2) Allocations shall be competitive and, after consultation with the Department 33
of Commerce, awarded to proposals with the greatest projected economic 34
impact benefitting North Carolina. 35
(g) Administrative Costs. – The Department may use no more than three percent (3%) of 36
the Rail Fund for administrative costs. 37
(h) Report. – No later than March 1, 2026, the Division shall submit an initial report on 38
the implementation of this section to the Joint Legislative Commission on Governmental 39
Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 40
Division and thereafter shall submit an annual report no later than December 1 of each year. The 41
report shall include the following information: use of funds, projects approved, and estimated 42
economic impact." 43
SECTION 2.2. There is appropriated from the General Fund to the Special Economic 44
Development Fund for Rail the sum of fifty million dollars ($50,000,000) in nonrecurring funds. 45
46
AIRPORT DEVELOPMENT FUND 47
SECTION 3.1. Chapter 63 of the General Statutes is amended by adding a new 48
Article to read: 49
"Article 7A. 50
"Airport Special Economic Development Fund. 51 General Assembly Of North Carolina Session 2025
DRH10314-MWa-7 Page 3
"§ 63-76. Special Economic Development Fund for Airports. 1
(a) Creation. – The Special Economic Development Fund for Airports (Airports Fund) is 2
established as a special fund within the General Fund to be administered by the Division of 3
Aviation in accordance with this Article. 4
(b) Purpose. – The purpose of the Airports Fund is for airport capital improvements and 5
to incentivize and retain economically strategic flights. 6
(c) Source. – The Airports Fund shall consist of funds transferred to the Airports Fund 7
and revenue generated by Airports Fund investments and interest. Monies in the Airports Fund 8
shall be invested in accordance with G.S. 147-69.1, except that all interest or income received 9
and accruing on the monthly balance of the Airports Fund shall be paid into the Airports Fund. 10
Unexpended funds appropriated to the Airports Fund shall not revert. 11
(d) Uses. – Funds in the Airports Fund shall be used in accordance with the purpose of 12
this section. 13
(e) Limitations. – An allocation of funds under this section shall be in accordance with 14
the following limitations: 15
(1) No more than eighty percent (80%) of the annual allocations from the Airports 16
Fund shall be used for airport capital improvements, including those necessary 17
to attract or retain commercial aviation operators or manufacturers that require 18
the use of an airport. 19
(2) No more than seventeen percent (17%) of the annual allocations from the 20
Airports Fund shall be used to incentivize and retain economically strategic 21
flights. 22
(3) Up to twenty percent (20%) of the annual allocations from the Airports Fund 23
may be applied to airport safety improvements, to the extent that the 24
Department determines that the lack of airport safety improvements is 25
inhibiting economic growth. 26
(f) Cost-Sharing. – The total allocation of funds from the Airports Fund shall not exceed 27
fifty percent (50%) of the cost for airport improvements. 28
(g) Criteria. – The Division shall establish procedures and criteria and adopt rules for 29
allocating funds from the Airports Fund in accordance with the purpose of this section and the 30
following criteria: 31
(1) The airport project is projected to increase jobs, wages, capital investment, 32
and tourism to North Carolina, with a particular emphasis on educational 33
tourism, as independently determined by the Department. 34
(2) Allocations shall be competitive and, after consultation with the Department 35
of Commerce, awarded to proposals with the greatest projected economic 36
impact benefitting North Carolina. 37
(h) Administrative Costs. – The Department may use no more than three percent (3%) of 38
the Airports Fund for administrative costs. 39
(i) Report. – No later than March 1, 2026, the Division shall submit an initial report on 40
the implementation of this section to the Joint Legislative Commission on Governmental 41
Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 42
Division and thereafter shall submit an annual report no later than December 1 of each year. The 43
report shall include the following information: use of funds, projects approved, and estimated 44
economic impact." 45
SECTION 3.2. There is appropriated from the General Fund to the Special Economic 46
Development Fund for Airports the sum of one hundred million dollars ($100,000,000) in 47
nonrecurring funds. 48
49
FUNDING FOR PORT OF MOREHEAD CITY ROLL -ON-ROLL-OFF FACILITY 50 General Assembly Of North Carolina Session 2025
Page 4 DRH10314-MWa-7
SECTION 4. There is appropriated from the General Fund to the Department of 1
Transportation the sum of thirty million dollars ($30,000,000) for the 2025-2026 fiscal year to 2
be allocated to the North Carolina Ports Authority for the Authority to use for the construction 3
of a roll-on-roll-off facility for the Port of Morehead City. 4
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EFFECTIVE DATE 6
SECTION 5. This act becomes effective July 1, 2025. 7