HB677 • 2026

Federal funds; Governor shall not return to federal government as long as there is still a demonstrable need for those funds in Mississippi.

AN ACT TO PROVIDE THAT WHENEVER THE STATE RECEIVES ANY FEDERAL FUNDS THAT ARE REQUIRED OR AUTHORIZED TO BE USED FOR A PARTICULAR PROGRAM OR PURPOSE AS SPECIFIED IN FEDERAL LAW OR REGULATIONS, THE GOVERNOR OR STATE AGENCY EXECUTIVE DIRECTOR HAVING CONTROL OF THE FUNDS SHALL NOT RETURN ANY OF THOSE FUNDS TO THE FEDERAL GOVERNMENT AS LONG AS THERE IS STILL A DEMONSTRABLE NEED FOR THOSE FUNDS IN THE PROGRAM OR FOR THE PURPOSE FOR WHICH THE FUNDS WERE PROVIDED, UNLESS FEDERAL GOVERNMENT REQUIRES THE STATE TO RETURN THE FUNDS; TO PROVIDE THAT IF THE GOVERNOR OR STATE AGENCY EXECUTIVE DIRECTOR HAVING CONTROL OF THE FUNDS DETERMINES THAT THE PROGRAM OR PURPOSE FOR WHICH THE FUNDS WERE PROVIDED COULD BE BETTER ADMINISTERED BY NONPROFIT ENTITIES OR OTHER NONGOVERNMENTAL ENTITIES THAN BY THE STATE, THE FUNDS MAY BE TRANSFERRED TO SUCH ENTITIES TO ADMINISTER THE PROGRAM OR PURPOSE FOR WHICH THE FUNDS WERE PROVIDED, IF ALLOWED BY FEDERAL LAW AND REGULATIONS AND ONLY IN ACCORDANCE WITH THE FEDERAL LAW AND REGULATIONS; AND FOR RELATED PURPOSES.

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor: Taylor, Sanders
Last action: 2026-02-03
Official status: Dead
Effective date: July 1, 20

Plain English Breakdown

The bill did not pass and therefore has no effective date or further legislative action.

Mississippi Federal Funds Retention Act

This bill stops the Governor or state agency directors from returning federal funds to the U.S. government if there is still a need for those funds in Mississippi.

What This Bill Does

Requires that when Mississippi gets federal money, it cannot send back any of this money unless the federal government says it must be returned.
Allows the Governor or state agency directors to transfer federal funds to nonprofit groups or other non-government organizations if they think these groups can manage the program better than the state.

Who It Names or Affects

The Governor and state agency directors who control federal funds.
Nonprofit organizations or other non-government groups that might receive transferred funds.
Mississippi residents who benefit from programs funded by these federal dollars.

Terms To Know

Federal funds: Money given to Mississippi by the U.S. government for specific uses as set out in laws or rules.
Demonstrable need: A clear and proven requirement for something, like a program needing money to continue running properly.

Limits and Unknowns

The bill did not pass during the session it was introduced.
It only applies if federal laws or rules give the Governor or state agency directors control over how the funds are used without needing approval from the Mississippi Legislature.
The Attorney General is responsible for determining whether there is still a demonstrable need for the federal money in Mississippi.

Bill History

2026-02-03 Mississippi Legislative Bill Status System
02/03 (H) Died In Committee
2026-01-14 Mississippi Legislative Bill Status System
01/14 (H) Referred To State Affairs;Appropriations A

Official Summary Text

Federal funds; Governor shall not return to federal government as long as there is still a demonstrable need for those funds in Mississippi.

Current Bill Text

Read the full stored bill text

H. B. No. 677 *HR43/R565* ~ OFFICIAL ~ G1/2
26/HR43/R565
PAGE 1 (RF\KP)

To: State Affairs;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Taylor, Sanders

HOUSE BILL NO. 677

AN ACT TO PROVIDE THAT WHENEVER THE STATE RECEIVES ANY 1
FEDERAL FUNDS THAT ARE REQUIRED OR AUTHORIZED TO BE USED FOR A 2
PARTICULAR PROGRAM OR PURPOSE AS SPECIFIED IN FEDERAL LAW OR 3
REGULATIONS, THE GOVERNOR OR STATE AGENCY EXECUTIVE DIRECTOR 4
HAVING CONTROL OF THE FUNDS SHALL NOT RETURN ANY OF THOSE FUNDS TO 5
THE FEDERAL GOVERNMENT AS LONG AS THERE IS STILL A DEMONSTRABLE 6
NEED FOR THOSE FUNDS IN THE PROGRAM OR FOR THE PURPOSE FOR WHICH 7
THE FUNDS WERE PROVIDED, UNLESS FEDERAL GOVERNMENT REQUIRES THE 8
STATE TO RETURN THE FUNDS; TO PROVIDE THAT IF THE GOVERNOR OR 9
STATE AGENCY EXECUTIVE DIRECTOR HAVING CONTROL OF THE FUNDS 10
DETERMINES THAT THE PROGRAM OR PURPOSE FOR WHICH THE FUNDS WERE 11
PROVIDED COULD BE BETTER ADMINISTERED BY NONPROFIT ENTITIES OR 12
OTHER NONGOVERNMENTAL ENTITIES THAN BY THE STATE, THE FUNDS MAY BE 13
TRANSFERRED TO SUCH ENTITIES TO ADMINISTER THE PROGRAM OR PURPOSE 14
FOR WHICH THE FUNDS WERE PROVIDED, IF ALLOWED BY FEDERAL LAW AND 15
REGULATIONS AND ONLY IN ACCORDANCE WITH THE FEDERAL LAW AND 16
REGULATIONS; AND FOR RELATED PURPOSES. 17
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 18
SECTION 1. (1) As used in this section, the term "federal 19
funds" means funds provided to the State of Mississippi by the 20
federal government or an agency of the federal government that, 21
according to the federal law or regulations governing the funds, 22
are under the exclusive control and direction of the Governor or a 23
state agency whose executive director serves at the will and 24
pleasure of the Governor, without having to be appropriated by the 25
H. B. No. 677 *HR43/R565* ~ OFFICIAL ~
26/HR43/R565
PAGE 2 (RF\KP)
ST: Federal funds; Governor shall not return to
federal government as long as there is still a
demonstrable need for those funds in
Mississippi.
Legislature, regardless of whether the Governor or state agency 26
executive director applied to receive those funds. 27
(2) Whenever the State of Mississippi receives any federal 28
funds that are required or authorized to be used for a particular 29
program or purpose as specified in federal law or regulations, the 30
Governor or state agency executive director having control of the 31
funds shall not return any of those funds to the federal 32
government as long as there is still a demonstrable need for those 33
funds in the program or for the purpose for which the funds were 34
provided, unless federal government requires the state to return 35
the funds. The determination of whether there is still a 36
demonstrable need for those funds in the program or for the 37
purpose for which the funds were provided shall be made by the 38
Attorney General. 39
(3) If the Governor or state agency executive director 40
having control of the funds determines that the program or purpose 41
for which the funds were provided could be better administered by 42
nonprofit entities or other nongovernmental entities than by the 43
state, the funds may be transferred to such entities to administer 44
the program or purpose for which the funds were provided, if 45
allowed by federal law and regulations and only in accordance with 46
the federal law and regulations. 47
SECTION 2. This act shall take effect and be in force from 48
and after July 1, 2026. 49