Mississippi Gov. Tate Reeves has signed legislation creating the “Local Governments Disaster Recovery Emergency Loan Program,” aimed at assisting cities and counties impacted by winter storms. The program is designed to help local governments bridge financial gaps while awaiting federal reimbursement from FEMA.
The legislation was enacted after lawmakers made adjustments following the veto of an earlier version last month. The new program will be administered by the Mississippi Emergency Management Agency and provides loans to local governments recovering from federally declared disasters.
Lawmakers passed the measure in response to January winter storms that left many North Mississippi communities without power for more than a week. The storms caused downed power lines, hazardous roads, and strained local infrastructure.
Under the program, local governments will be assessed a 3% interest rate on funds not approved by FEMA. No loans will be issued after July 1, 2027, and loan terms will not exceed five years.
Reeves vetoed the original legislation in March, citing concerns about the timing of amendments and its transmission. Lt. Gov. Delbert Hosemann and other legislators disagreed with the governor’s assessment and moved quickly to reestablish the program before the legislative session ended.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
