Local governments could seek loans for 2026 storm recovery costs

The Mississippi Emergency Management Agency would offer loans to eligible local governments for certain storm recovery costs. Eligible borrowers are counties, municipalities, and their political subdivisions within counties named in the federal disaster declaration or later added by FEMA; they must have applied to FEMA for assistance. The Legislature must appropriate money to the fund before it can be spent. The agency decides which expenses qualify and may set a maximum loan amount. The agency could issue loans through July 1, 2027; no loan could have a term longer than five years.

A local government receiving a loan would have to repay it under an agreement with the state. These requirements apply to every local government that receives a program loan. Before receiving a loan, the local government must sign an agreement with the Department of Revenue and the agency and name a dedicated revenue source to secure repayment if FEMA denies reimbursement. The agreement may require payment of no more than 12.5% of the matching funds required for federal grant funds. Repayment is due when FEMA reimbursement arrives; if FEMA denies reimbursement, the agreement must require full repayment within two years of the denial.

The Mississippi Emergency Management Agency would have exceptions to certain contracting and rulemaking requirements while running the program. These exceptions apply to the agency's work under this loan program. The agency would not need Public Procurement Review Board approval for program-related personal or professional services contracts or advance approval of their solicitations. The agency would be exempt from requirements under the Mississippi Administrative Procedures Law for program policies, procedures, and regulations.